Who is Anywhere Today?

To help clarify each of these distinct consumer segments, we’ve named the five groups to create intuitive impressions of each segment and how to reach it.

1. Analogs

In this revolution, the best way to describe them is to say that they are uninterested in digital technology. Analogs cannot even be called slow followers of our Anywhere trend, since they make the choice to avoid advanced technology altogether. Much of their reluctance may be the result of age; the Analogs are, in terms of average age, the oldest segment.

2. Technophytes

This is a group of consumers who aspire to be considered cutting edge when it comes to technology. In reality, though, they are late followers of digital media and connected devices. Why? Because while they are interested in these technologies, they don’t have the disposable income available to buy them until there are mature and more affordable. Technophytes want their Anywhere connections; they just can’t afford them until they are mainstream.

3. Digital Shut-ins

This is the group of consumers who have a great interest in digital media in their own homes, but less so when they are away from home. While these consumers enthusiastically embrace digital media, they aren’t as aggressive in adopting connected devices. Educating this segment remains important because Shut-ins often fail to equip their devices, such as HDTV, with all the services they support, like HD channel programming from their providers.

4. Outlet Jockeys

Along with consumers in our final segment, Outlet Jockeys own the latest and greatest portable devices and thirst for more of them. These mobile consumers enjoy cutting-edge portable applications as well as using their hand sets to e-mail, instant message, and engage in social networking.

5. Actualized Anywheres

Actualized Anywheres may be the smallest segment, comprising only 5 percent of the population in North America and Western Europe, but they are the most important. They enthusiastically buy Anywhere products and services for their mobile lifestyles, and, unlike Outlet Jockeys, they apply those devices and services at home. Actualized Anywheres bring the concept of a ubiquitously connected consumer to life.

Curious on knowing more about the "anywhere" concept and what it means to your business? Grab the summary on BusinessSummaries.com.

Tools to Keep Tabs on Competitors

On the flip side, it is easier than ever to track how your competition is doing on the Web if you know what you are doing. Here are seven different ways you can track yourself relative to your competitors:

1. Website Grade – Go to WebsiteGrader.com and run your website alongside your competitors’ web sites to see how well you do. Pay special attention to upstart competitors who might be more focused on leveraging the Web than some of the more traditional players.

2. Delicious – Delicious.com is an online version of someone’s browser bookmarks, so if many people have your site bookmarked, it means you have remarkable content. If your competitors’ bookmarks grow rapidly, it means the marketplace is starting to respond to something they are saying or doing.

3. Inbound Links – An increase in the number of links to a site can indicate that a competitor is getting more traction with its products.

4. TwitterGrade – Go to Twitter.Grader.com and run your company’s Twitter profile through and compare it to each competitor. You should track this metric over time.

5. Facebook Fans – Go to Facebook.com and see the number of fans your company’s web site has relative to your competitor’s web site. You will have to search around to find the company page in facebook. This number is worth tracking over time – if your competitor starts to gain a lot of fans, then it means their customer loyalty is increasing.

6. Compete – Go to Compete.com and compare their estimate of the traffic your site is getting versus your competitors.

7. Buzz – Go to Google and do a search on “your brand” and look at the number of results in the upper right hand corner. Do the same for each of your competitors. The number of results shows the number of pages on the Web where the brand is mentioned. This metric is worth tracking over time as it will let you know how your “buzz” is relative to your competitors’. You can do the same thing in blogsearch.google to see how your buzz is going relative to your competitors in the blogosphere.

For more updated insights on business marketing, please visit BusinessSummaries.com.

So You Have Talent. Now What?

New York Times best-selling author Dr. John C. Maxwell has a message for you, and for today’s corporate culture fixated on talent above all else: TALENT IS NEVER ENOUGH.

People everywhere are proving him right. Read the headlines, watch the highlights, or just step out your front door.

Some talented people reach their full potential, while others self-destruct or remain trapped in mediocrity. What makes the difference?

Maxwell, the go-to guru for business professionals across the globe, insists that the choices people make – not merely the skills they inherit – propel them to greatness. Among other truths, successful people know that:

• Belief lifts your talent.
• Initiative activates your talent.
• Focus directs your talent.
• Preparation positions your talent.
• Practice sharpens your talent.
• Perseverance sustains your talent.
• Character protects your talent… and more!

It’s what you add to your talent that makes the greatest difference. With authentic examples and time-tested wisdom, Maxwell shares attributes you need to maximize your potential and live the life of your dreams.

You can have talent alone and fall short of your potential. Or you can have talent plus, and really stand out.

When I Get To The Top, Then I'll Learn To Lead

Leadership is very similar. If you want to succeed, you need to learn as much as you can about leadership before you have a leadership position.

Good leadership is learned in the trenches. Leading as well as they can wherever they are is what prepares leaders for more and greater responsibility.

Becoming a good leader is a lifelong learning process. If you don’t try out your leadership skills and decision-making process when the stakes are small and the risks are low, you’re likely to get into trouble at higher levels when the cost of mistakes is high, the impact is far reaching, and the exposure is greater.

Mistakes made when you’re at the top cost the organization greatly, and they damage a leader’s credibility.

How do you become the person you desire to be? You start now to adopt the thinking, learn the skills, and develop the habits of the person you wish to be.

It’s a mistake to daydream about “one day when you’ll be on top” instead of handling today so that it prepares you for tomorrow. As Hall of Fame basketball coach John Wooden said, “When opportunity comes, it’s too late to prepare.”

If you want to be a successful leader, learn to lead before you have a leadership position.

A position gives you a chance. It gives you the opportunity to try out your leadership. It asks people to give you the benefit of the doubt for a while.

But given some time, you will earn your level of influence – for better or worse. Good leaders will gain in influence beyond their stated position.

Bad leaders will shrink their influence down so that it is actually less than what originally came with the position. Remember, a position doesn’t make a leader, but a leader can make the position.

To think that life “at the top” is easier to think the grass is greener on the other side of the fence. Being at the top has its won set of problems and challenges.

In leadership – no matter where you are in an organization – the bottom line is always influence.

You do not need to be the top dog to make a difference. Leadership is not meant to be an all-or-nothing proposition.

If being someplace other than the top has caused you great frustration, please don’t throw in the towel. Why? Because you can make an impact from wherever you are in an organization, even if you face additional obstacles.

Being a leader stuck in the middle brings many challenges. You can learn to navigate them.

Becoming an effective 360-Degree Leader requires principles and skills to lead the people above, beside, and below you in the organization. You can learn them.

Individuals can become better leaders wherever they are. Improve your leadership, and you can impact your organization. You can change people’s lives.

You can be someone who adds value. You can learn to influence people at every level of the organization – even if you never get to the top. By helping others, you can help yourself.


BusinessSummaries.com is a business book summaries service. Every week, it sends out to subscribers a 9- to 12-page summary of a best-selling business book chosen from among the hundreds of books printed out in the United States. For more information, please go to http://www.bizsum.com.

The Business Sale: An Owner's Most Perilous Expedition

For most owners, the business sale, merger, or acquisition process is a mountain of uncertainty.

The Business Sale...An Owner’s Most Perilous Expedition provides practical steps to navigate an owner through the uncharted journey of selling a business. Written by experienced merger and acquisitions professionals, this book offers insider information on the journey to a successful business sale. This book gives owners a greater understanding of the process and the ingredients that go into a successful business sale.

This book will give owners a greater understanding of the process and the ingredients that go into a successful business sale. It reveals tactics to help sellers:

• Maximize your chance of success with strategic pre-sales planning
• Prepare your offering documents to best position your company
• Avoid common pitfalls that plague inexperienced sellers
• Identify and evaluate the different types of buyers
• Learn which tangible and intangible assets can elevate the value of your business
• Learn how to profile the right buyer
• Chart a course through sensitive negotiations
• Sustain business momentum throughout the process
• Properly structure the deal

Section I: Hiring the Right Intermediary

Key Benefits of Using an Intermediary
Product synergy occurs when the purchaser and seller have complementary products that, when combined, create greater value.

1. Strategic Fit means synergy between the purchasing entity and the seller. This could take many forms, but a few examples include product, distribution, geographic, and management synergies. Product synergy occurs when the purchaser and seller have complementary products that, when combined, create greater value.

2. Understanding the Process of selling a company is a vital component to a successful divestiture. Despite the success of many companies, most owners do not fully comprehend all aspects of a business sale transaction. Conversely, an intermediary handles several business deals daily, so they are experienced in all aspects of business sale activities.

3. Creating Multiple Options relates to the ability to orchestrate and manage several buyers at the same time. The classic mistake a business owner makes when selling his business is dealing with one interested party at a time. This not only limits an owner’s likelihood of landing a successful deal, it also limits the number of potential offers.

4. Communication and Negotiation is the foundation of every deal, but contrary to popular belief, it is not the only step that matters. This is by far the most common stumbling block of most business owners. They perceive themselves to be excellent negotiators; therefore they assume they can negotiate the best possible deal. Many times owners forget that a lot more goes into “getting a good deal” than their ability to communicate.

5. Few sellers know what is reasonable to expect and how to Manage Expectations. Is it reasonable to ask for a confidentiality agreement before releasing any information? How much information should I release initially? When should I meet with the buyer? When should I expect a letter of intent? What about earnest money – how much and when? Who drafts the purchase agreement? When do I tell my employees? How long should I allow for due diligence? Who pays for due diligence? These are just a few of the questions that come up during the process. Knowing what is reasonable dictates how you respond to the buyer and demonstrates your skill level. Small things such as this dictate who controls the process, who bargains from a position of strength, and who gets the better deal.

6. The biggest risk a business owner faces when attempting to manage the process himself is the inability to Stay Focused on the Business during the sales process.

7. The sale of a business is like any other process – Sustaining Momentum is critical. When you have positive momentum during the process, good things tend to happen. Conversely, negative momentum tends to feed on itself.


The Engagement Agreement
Due to the personalized nature of each business sale project, most merger and acquisition experts do not follow a standardized agreement format.

The initial term states the period of time the intermediary will actively pursue the marketing of a business sale. Upon expiration, the intermediary is still protected for a period of time called the survival period. This means that if the business is purchased by a buyer that had contact with the intermediary during the initial period, the intermediary will still receive his full performance fee.

Note the success fee or performance fee is paid on all consideration received for the business. The business owner may have choices as to how he accepts the structure of his deal: all cash, seller financing, stock, royalty, etc.


Section II: Pre-Sale Planning

Determining Business Value
So what drives business value? Conversely, the lack of such features in a business will detract from market value. To the extent that these elements are improved in a particular business, the market value of the business is improved.

Growth Rate: The growth rate of sales and profits compared to our national growth rate and the growth rate of the company’s particular industry. Higher growth rates command higher values.

Operating Profits: Higher profits as a percent of sales compared to industry averages. Operating profit margins that exceed industry averages will command higher values.

Management Quality and Depth: Depth, quality, tenure, experience, success record, education, as well as succession for managers and key employees. Above-average management and employees will reduce risk during transition and justify higher multiples.

Niche, Market Position, Brand Awareness and Identity: If a company fills a definable niche, commands a special leadership position, or has strong and favorable brand awareness in their market - whether for products, services, geographic areas, production efficiencies or certain capabilities – a higher value should be supported.

Multiple Customer Groups: If the product or service offerings of a company have multiple customer groups, markets, or end users, a higher value is justified.

Proprietary Products: The more proprietary the products, the higher the profit potential and value.

Customers: Diversification of customers, their length of time buying from the company, as well as their financial strength and payment history are important considerations when assessing a business. If the answer is very little, then the company has virtually no customer concentration risk and can command a higher value.

Product Mix and Gross Profit: The greater the number of products the company sells and the greater the gross profit on each line, the stronger the case for a higher valuation.

Condition and Appearance of Tangible Assets: Does the business “show well”? Don’t forget to consider patents and other intangible assets, favorable leases, or agreements.

Interim Results: Buyers are interested in what the business will do in the future. List the level of revenues that the business, without additional investments or hiring, could support.

Projections: The higher and more certain the projected sales and cash flow of the business, the higher the multiple of trailing cash flow.

Overall Reputation in the Community and Industry: Healthy and favorable reputations make doing business easier.

Quality of Financial Information: Financial statements present the financial health and performance of a company.

Absence of Risk: Risk and uncertainty lower value.


Tax Planning and Offering Documents
Four key offering documents must be prepared in advance of any contact with buyers:

1. The Confidentiality Agreement is a critical document of the sale process. The purpose of the confidentiality agreement is to limit how such information can be used.

2. Confidential Offering Memorandum: The purpose of the offering memorandum is to help interested parties understand your business, including its strengths, weaknesses, and potential.

3. Generic Summary: The generic summary is a tool for attracting buyer candidates. To determine whether the business may meet a buyer’s criteria, a generic summary provides basic data about the company, but not enough information to discern the identity of the offered business.

Recasting Income Statements and Balance Sheets

By recasting, we adjust the historical financial statements as follows:

Non-Recurring Expenses: Eliminate those expenses that burdened the historical profits, but are not expected to do so in the future.

Unnecessary Expenses: Eliminate those costs that affect the historical profits, but that are not necessary for the operation of the business going forward.

Owner Benefits: Add back to net profit the total dollar value of all benefits received by the owner.


Section III: Marketing

Generating Buyer Interest
First, an owner and/or intermediary will create two lists: a short list and expanded list. The short list will encompass individuals or companies that the owner or intermediary already has specific knowledge and are easy to profile. This list may include competitors, key management personnel, partners who do not wish to sell, and key customers.

There are two basic ways to approach marketing a business for sale: the “rifle method” or “stealth trolling”.

The traditional way of marketing a business is the rifle method. If you
After you have qualified the long and short list into a targeted group of potential buyers, you are ready to disburse the confidentiality agreement and begin the process of courting buyers.

The second way to approach the sales and marketing effort is called stealth trolling. This can be done in conjunction with the rifle method. If you think about this term from the perspective of fishing, it would mean you were trolling for fish with invisible bait. The contact is made with the decision-maker. However, instead of leading with “I got a product”, the owner or intermediary focuses on gaining insight into a buyer’s plans for the future.

Section IV: Negotiation

Listening and learning is essential to a successful negotiation process.

Determining Fair Market Value: To keep the negotiation on track, it is important for both parties to establish realistic guidelines in regards to fair market value. Perceived value varies among individuals, including sellers and buyers.


Final Negotiation & Agreement
During the final negotiation phase, price, terms and conditions are agreed upon. Key issues are reviewed, formalized, and accepted. Parties are near the closing process, without actually resolving the transaction yet.


Section V: Closing

Closing Documents and Procedures
Generally, the purchase agreement contains the following sections:

The Introduction section of the purchase agreement usually contains the names, addresses, and various background information regarding the buyer and seller.

The Terms of the Deal are fully defined in this section of the purchase agreement.

The Representation and Warranties section of the purchase agreement includes statements made by the buyer and seller that are considered factual.

The Pre-Closing Obligations section of the purchase agreement generally defines the activities that the buyer and seller have undertaken during the period between the signing of the purchase agreement and the closing date.

The Post-Closing Obligations of the buyer and seller define the actions that are taken if the buyer or seller representations are inaccurate.

The Miscellaneous Provisions section of the purchase agreement generally covers the following:

• The state laws governing the purchase agreement
• Transaction fees
• Responsibility for transaction fees
• Circumstances by which the agreement will terminate

The Closing Procedures section of the agreement defines the documents, property, and considerations that are used to complete the transaction.

Settlement Statement: The settlement statement is a worksheet which outlines in detail the payments and expenses of the buyer and seller.

Promissory Note: If the deal is made on an installment basis, a promissory note is necessary.

Security Agreement: A security agreement accompanies a promissory note. The security agreement creates a public record to record the seller’s interest in certain collateral which is named in the agreement.

Employment or Consulting Agreement: If the services of employees, owners or other consultants is a part of the deal, the details of the employment are provided in this agreement. The employment agreement outlines the amount of compensation to be paid, the types of service to be rendered, and the length of agreement time.

BusinessSummaries.com is a business book summaries service. Every week, it sends out to subscribers a 9- to 12-page summary of a best-selling business book chosen from among the hundreds of books printed out in the United States. For more information, please go to http://www.bizsum.com.