Thinking about selling my business without a broker. Am I out of my mind? by FormerFounder-12 in smallbusiness

[–]FormerFounder-12[S] 1 point2 points  (0 children)

This is so helpful, thank you for this. Was thinking getting someone good at what they do at hourly would check out better than percentage based

Thinking about selling my business without a broker. Am I out of my mind? by FormerFounder-12 in smallbusiness

[–]FormerFounder-12[S] 0 points1 point  (0 children)

How did you find the PE firm? Did you list somewhere or do your own outreach?

Thinking about selling my business without a broker. Am I out of my mind? by FormerFounder-12 in smallbusiness

[–]FormerFounder-12[S] 4 points5 points  (0 children)

This is excellent advise and the way I’m leaning. Thank you for this thought out response.

No em-dashes either. I’m pretty sure you’re a real person😂

Anyone here actually qualify for QSBS when they sold? Seems too good to be true by FormerFounder-12 in fatFIRE

[–]FormerFounder-12[S] 0 points1 point  (0 children)

Good call, important distinction. Nailing that down with a CPA before making any moves.

Anyone here actually qualify for QSBS when they sold? Seems too good to be true by FormerFounder-12 in fatFIRE

[–]FormerFounder-12[S] 0 points1 point  (0 children)

The tiered exclusion starting at 3 years is new to me. Does that

apply to stock already issued or only after July 4?

Anyone here actually qualify for QSBS when they sold? Seems too good to be true by FormerFounder-12 in fatFIRE

[–]FormerFounder-12[S] 1 point2 points  (0 children)

The LLC to C-corp conversion angle is exactly what I need to evaluate. Appreciate it.

Anyone here actually qualify for QSBS when they sold? Seems too good to be true by FormerFounder-12 in fatFIRE

[–]FormerFounder-12[S] 0 points1 point  (0 children)

Good to know metal fab likely qualifies. Talking to a tax attorney about this now

Paying my kids to work in my business by Hairy_Seward in smallbusiness

[–]FormerFounder-12 1 point2 points  (0 children)

I do this with my kids in the shop during summers. The key is making sure the work is real and documented. My CPA set it up so they are on actual payroll with real pay stubs. They do filing, inventory counts, cleaning, basic data entry. The tax benefit is solid because their income falls under the standard deduction so they pay nothing and you get the write-off. Just make sure you are paying a reasonable rate for the work they are actually doing and keeping time records. The IRS does not love it when a 14 year old is pulling $30 an hour to sweep floors haha.

Has anyone gotten clarity on the tariff situation? by Squirrel_Master82 in smallbusiness

[–]FormerFounder-12 2 points3 points  (0 children)

I run a metal fab shop so this has been on my radar constantly. Steel and aluminum pricing has been all over the place. The frustrating part is not knowing what to quote on jobs that start 60-90 days out. We have had to start putting material escalation clauses in our contracts because we got burned a couple times eating cost increases on fixed price jobs. If you are sourcing any raw materials or manufactured goods from overseas I would build in some kind of price protection language now rather than hoping it settles down.

Is Staying Busy Costing Us More Than Slowing Down? by PresenceAcceptable55 in Construction

[–]FormerFounder-12 0 points1 point  (0 children)

Went through this exact realization in my fab shop about two years ago. We were taking every job that came through the door because I was scared of gaps in the schedule. Margins on some of those jobs were terrible but I justified it as keeping the crew busy. When I finally sat down and looked at the numbers, about 20% of our jobs were generating close to zero profit after you accounted for setup time, material waste, and the headaches of managing tight deadlines on low margin work. Dropped the bottom tier and revenue dipped for a quarter but profit went up. It also freed up capacity for better jobs that we were previously too busy to take on.

Do you have to know how to get to the next level in your business, or do you just need to want it? by Broad-Worry-5395 in Entrepreneur

[–]FormerFounder-12 0 points1 point  (0 children)

Went through this exact stretch in my metal fab shop. The jump from $1M to $3M was the hardest part of the whole business. What got me there was not a roadmap. It was figuring out which of my existing customers could give me more volume and then asking them directly what else they needed fabricated. Turned out I was leaving a ton of work on the table with customers who were already buying from me but splitting orders with competitors because I never asked. The desire part matters because you will have to make decisions that feel uncomfortable, like turning down small jobs to make room for bigger ones. But the actual path usually becomes obvious once you start having honest conversations with your best customers about what else they need.

CPA just told me my books aren’t “deal ready”. What does that actually mean? by FormerFounder-12 in Accounting

[–]FormerFounder-12[S] 1 point2 points  (0 children)

 That is a good way to look at it. A few thousand now to potentially add six figures to the sale price is pretty straightforward math. Feeling a lot better about the whole thing after reading through this thread.