How to Have a Good Team and Good Profits

I’m discussing how to not only have good people working in your business, but also how to profit from it. These two aspects must work together.

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I have two questions for you: How profitable is your company, and how good is your team? If you’re not as profitable as you should be and your team is not as good as it needs to be, what should you do?

We frequently run into entrepreneurs who are running fast. They have sales and activity and are as busy as you can imagine. However, they have a host of issues: They’re not making the money they should be, they’re growing their debt, their accounts receivable are growing, they have human resource problems, people aren’t getting along, things are falling through the cracks. Things are just out of control. What do you do in that situation?

Well, you could get some auditors to come in and take a look at things. You could bring in some business coaches. You could sign up for programs that put your employees through an eight-week course for something. But how do you put it all together?

Often there’s a large disconnect between the coaching, the management, and the financial analytics inside the company. The management and finances need to coincide. When this disconnect happens, the owner is going in the hole, they aren’t making much money, and there’s a lot of conflict and stress within the business.

Often there’s a large disconnect between the coaching, the people managing side, and the financial analytics.

One of the things we offer is the ability to come in and do an assessment of your company. We not only look at the people, positions, and whether you have the right people in them, but also what your systems are for accountability. We go deep into the weeds of your finances. To have a successful business, you need to have a great team and a strong operation.

It’s one thing to coach your people and help them get better, but if you don’t have the right analytics, financial processes, accountability, and ways of measuring what’s happening in each division, you’re not going to make money, even if you have the best people on earth.

If you find your company in this situation, give us a call. We have the people who can not only go in and analyze the team and help them get better, but we also bring in a financial group that will look deep inside the company and analyze everything and ensure you have the right systems in place to know what’s going on at all times, so you can make excellent business decisions and hold people accountable. We’d love to come out and meet you, get a good idea of what’s going on inside your business, and see if we can offer some solutions that can help you become more profitable and enjoy your workplace in the long term.

The Next Generation

If you want the next generation to keep your company growing, you need to apply the right financial analytics to it.

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If you own a family business and you want to transition that business to the next generation, how do you ensure that generation succeeds?

Although family members are the people you might want to take over the business, they often aren’t ready to run the company in a way that not only succeeds in the short-term but also grows the company in the long-term.

A common cause behind this problem is how they manage finances. In many cases, the metrics aren’t even there for them to be able to do the right processing to improve the finances of the company and make it profitable. Another common cause is they don’t have the right people in the right positions.

Sometimes, the next generation simply can’t run the company without the management team that isn’t family. That management team has perhaps been in the business a long time and, although they’ll never own stock, you have to hang on to these people because they’re talented and the next generation isn’t ready to take over certain positions.


Give us a call and we’ll go deep into your organization and it’s finances so that you become as profitable as possible moving forward.

In today’s marketplace, there are all sorts of different programs designed to help you understand how to train and develop your team, but what’s missing from these programs is the right financial analytics that need to be applied deep within the company to know where the pain points are and where money is being lost.

That’s where we come in. At Nabity Business Advisors, we not only help you analyze your organization and put together the vision that holds everyone accountable, but we have the people who can go deep inside the company’s finances to find out where money is falling through the cracks and what needs to be improved. This way, you can make good decisions on how to manage the company and make sure you have the right people in the right positions.

This is critical because, if a new generation is buying out the company from the founders or the first generation, then that previous generation will be getting installment payments from the new one. If the company isn’t successful, it could be a big problem down the road.

So if you find yourself in this situation, give us a call and we’ll go deep into your organization and it’s finances so that you become as profitable as possible moving forward.

If you have any other questions about this topic, feel free to reach out to me as well. I’d love to speak with you.

Selling Your Business to Outsiders

If you’re a business owner near the age of retirement, here are a few things to keep in mind about selling your business.

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There are lots of different ways of selling your business to outsiders. You can go to business brokers, finance people, investment banks, and so on.

At Nabity Business Advisors, we’ll work with you to make sure that everything is packaged properly so that when the time comes to take the business to the market, you and your management team are ready. Having a third party involved will help you find the best candidate to take over your business.


We’ll work to make sure that you can retire with peace of mind and that the buyer is in a position to succeed after taking over your company.


Your buyer might be someone friendly to you from inside the industry, or they could be a complete stranger you know nothing about. Regardless, we will work with that other party, go through the numbers, and try to find common ground for the greater good of both parties. We want to make sure their offer is reasonable, that you’re treated fairly, and that they’re not going to come in and gut the business that you’ve worked so hard to build. With us as a third-party intermediary, we’ll work to make sure that you can retire with peace of mind and that the buyer is in a position to succeed after taking over your company.

If you’re thinking of selling your business so you can retire, or would like to consider it for the future, reach out to us. We can give you ideas about positioning your company to be ready for sale when the time comes.

How to Manage the Transaction of Stocks Between Family Members

In this installment of our series on transitioning stock, we’ll be discussing how business owners should handle the logistics of this deal.

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Welcome back to our series on how to transition stock from your business. As we mentioned in part one, which you can view here, transitioning stock to family members can be a tricky process. This is especially true when only some of your family members are active in the business, or even when all family members are active, but only a couple are really putting in the time and effort to make it successful.

When the time comes to start thinking about transitioning your stock to family members, the first point to consider is your business’ value. Because you and your family are likely somewhat biased, having a neutral third party analyze the value of your business is generally the best approach. Such an analysis will not only be more accurate than one conducted by you or your family members, but it will also help to reduce internal conflict.

    The value of having third-party guidance when transitioning stock is impossible to overstate.

After you’ve assessed your business’ value, it’s time to think critically about who will be the most capable successor. There may be cases where one of your children is CEO material, but there may be other instances in which looking outside of the company will reap the best results. The most important thing is that you find someone who is truly equipped to lead in your stead. Again, having a third-party (like Nabity Business Advisors) to help you with this decision can ease this process.

Once these details have been settled, the next step is to make a plan for executing the deal. Do you write a lump-sum check? Do you sell all your stock in exchange for a note? Should you seek a loan from the bank?

There are many different ways to go about handling this transaction, and, again, the best way to determine which strategy is right for you will be to have an outside firm come in and look at your business’ specific circumstances. The value of this third-party guidance is impossible to overstate.

As a final note, please realize that this decision is about more than just the integrity of your business. Handling this transition incorrectly has the potential to destroy your family. This is the core reason why having an intermediary involved is so crucial.

We at Nabity Business Advisors specialize in facilitating transitions like this, so don’t hesitate to reach out if you have any other questions or would like more information. We look forward to connecting with you soon. As a final note: Be on the lookout for part three of this series. You won’t want to miss it.

How to Prepare to Transition Your Stock Before Retirement

If you want to learn about transitioning your stock upon retirement, this new three-part video series is for you.

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If you own and run a company, a time will come when you will need to transition your stock to a new shareholder. Even if you aren’t ready to retire yet, there are several steps you should start taking to prepare right now. We’ll go over a few of the most important steps in our latest series: Strategies for Transitioning Your Stock.

Whether you decide to sell or gift your stock to a friend, colleague, or family member, the first step you must take is to consider your estate plan. For instance, should you own your stock outright, or should “ownership” of your stock fall to your trust?

    Giving stock to children who aren’t active in the business can create a lot of conflict later on.

Owning your stock outright, as opposed to running ownership of your company through a trust, could result in a hefty estate tax when the time comes to sell your stock. Getting your estate plan in order early on is critical.

On that note, don’t split wealth evenly between your children if some of them aren’t working within the business. It may seem like the obvious choice, but giving stock to children who aren’t active in the business can create a lot of conflict later on. Jealousy, animosity, and general negativity can begin to fester, otherwise.

A good alternative is to simply supplement your other children’s inheritance with wealth from other sources. This way, you are still leaving equal assets behind. Getting a life insurance policy that will help create equity among your estate’s recipients is another great option.

If you’d like to learn how the process of transitioning stock to family members actually works, be on the lookout for part two of this series, which will be coming up soon. As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How We Help Family Business Sales and Purchases

An independent third party can be extremely valuable to both business owners who are looking to sell and those who want to buy their businesses.

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Have you wondered about whether it would be a good idea to get somebody from the outside to come inside your business and help you get ready to sell it? Or have you wondered about whether it’s a good idea to get a third party involved to help you negotiate the terms of a purchase of a business? I’m here today to share my thoughts on this matter.

When people own companies and they’re getting to the point of retiring, they aren’t usually prepared. Maybe they don’t know the right way to sell or what the actual value of the company is. 

At Nabity Business Advisors, we help owners figure out the true value of their company and the best way to sell it. There are a lot of options out there. Sometimes it’s better to get a firm on board like ours to help negotiate the transition. Using a 3rd party helps separate yourself from the negotiation and we can help get a deal done where everyone is happy with the outcome.

    Having someone study your prospective organization is key.

For buyers, having someone to study prospective organizations is key.
That way, you’ll know that you’re getting into a good business transaction with good people. If it’s a merger, this is especially important. We can separate you from the transaction, look at what a fair price is, look at the people you’re going to be merging with, and make sure everything is a good fit. With a firm like ours in the middle, we can work hard to find out the greater good of the whole.

One last thing I wanted to mention was regarding family transactions. When you’re dealing with parents, kids, and siblings, conflicts can arise. We try to build trust with all the family members involved in a situation like this so we can do the right thing by the business and by each member of the family. We will make sure everyone still loves each other at the end so that Christmas isn’t ruined.

If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email today. I look forward to hearing from you soon.

Do You Have a Plan in Place to Protect Your Company if a Key Shareholder Dies?

If your company has multiple key shareholders and one of them dies, what happens? We’ll discuss the potential outcomes, as well as how to plan for this unfortunate scenario, today.

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If you own a company with multiple stockholders, what happens when one of the key stockholders dies?

Ideally, you should be prepared for this scenario before it occurs, and today we’ll share a few of the most important preliminary steps.

The first step is to assess the value of your company and the stock you own in it. This will help you understand the kind of liability you’ll face if you have to buy out the family of a shareholder who has died.

The next step is to consider what the terms of this buyout might look like. Will you buy the family out over time or give them a lump sum? Can you even afford these options? Taking a deep dive into your finances now can save you a major headache later on.

Once you’ve assessed the value of your company and thought about what the terms of a buyout would look like, you can then draft a buy/sell agreement. This agreement is one that all shareholders will review and, hopefully, consent to. It will outline exactly what will happen in the event that a key shareholder dies or becomes otherwise incapacitated.

“This process might sound relatively straightforward, but you would be surprised to learn just how many corporations haven’t planned for such an event. “


Finally, you’ll need to sort out your plan for funding the buyout. One of the least expensive ways to ensure you have the capital to buy out a stockholder in the event of a catastrophe is to insure that stockholder. There are many ways this insurance can be arranged. Sometimes, it’s a matter of one shareholder insuring another. Other times, it’s the corporation itself that insures the shareholder.

The money sent by the corporation to the insurance company would, upon the death of a key shareholder, be sent back to the corporation. The corporation would then send this money (either in installments or as a lump sum) to the family of the shareholder. The deceased shareholder’s stock would then be re-transferred to the company to be disbursed among the surviving stockholder(s).

This process might sound relatively straightforward, but you would be surprised to learn just how many corporations haven’t planned for such an event. And without a plan like the one we’ve described,  the decedent’s family could inadvertently become key shareholders in your corporation. Obviously, this is the last thing you want. This is exactly why preemptive planning is so important.

If you have any other questions or would like our help putting together this kind of plan for your business, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What Can You Do to Retain Top Executive Talent?

The future success of your company is largely dependent on the upper-level hires that you make. Here’s why.

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Everywhere I go, I hear one thing: “It’s an incredibly tough market out there for top talent.” However, some companies can’t staff key positions because they can’t find good people to fill them. If you’re in this situation, listen up, because I’ve got some great ideas to help you recruit and retain top talent in your business.

To have a successful company, you can’t just have one talented person. There has to be talent across the board. The problem with talent is that it’s tough to find and it’s tough to keep. It’s one thing to provide competitive compensation and benefits, but the top management people are looking for more. They want to retire healthier than just a basic salary and a basic 401(k). They want to know that if they help your company grow, there is something in it for them.

These people want to build wealth, and you can’t do that these days with your basic 401(k) plan. This is why companies are developing special incentive plans to lure top management people away from companies like yours so they can get that talent to help their business grow.

Let’s say you have a company and a young family. Someday your kids might want to come into the business, but you don’t know yet. In the meantime, you want to have an executive management team on board to help you grow. One common question that’s asked about these employees is whether you should offer them stock or not. Having other stockholders can be challenging at times. What else can you do?

“Having a plan in place makes people want to stay with you through retirement.”


One thing we like to do is help companies set up unique incentive plans such as phantom stock plans. Phantom stock doesn’t dilute shares from you, but it does give executives the ability to build wealth, and when they get to retirement, they can cash it in for extra money.

Another thing you can do is set up stock appreciation rights. It basically says the stock is worth a certain amount, and we’ll value it again when you retire. Then we’ll take the difference between those two points, multiply that by the phantom shares you have, and provide a big bonus to you when you retire. You can also set up deferred compensation plans to build up wealth for your top executives who hit performance benchmarks.

Having plans like this in place helps people want to stay with you through retirement, which is the goal here.

The bottom line is that there are plenty of things you can do on top of the basic salary and benefits packages that everyone else is offering. It not only helps you ensure that people stay, but also helps you recruit more top talent to your business.

If you have any questions about this in the meantime or need any help, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

How to Deal With Toxic Employees

Toxic employees can ruin a business from the inside out. Here’s what you should do in order to fix the situation.

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For whatever reason, we’ve found ourselves in the middle of a number of companies who have one or two people in the organization who are toxic, but they’re not getting fired. If you have someone in your organization who is toxic, I’ve got some advice for you today.

As you know, our company does a lot of work with family-owned companies and how to transition a business from one generation to the next, and we’ve been running into many situations where there are one or two people in the organization who are toxic.

What do I mean by toxic? These are employees that either have a very bad attitude, barricade themselves in their office, have bad records and reporting, or (and) are really not accountable to anybody. For example, it could be a family member who owns stock and comes to work every day but nobody really knows what they do.

“If you have toxic employees in your company, we need to have a chat.”


If you have someone like this in your company, I have some important advice. First, realize that you can’t run a successful company if you don’t follow good business fundamentals. Everyone in your organization needs to have a job description that tells them exactly what they need to do to be considered valuable and productive, and it’s imperative that they’re held accountable to the team. If you’re not doing this with everyone in your organization, you’re going to find toxic employees and that will lead to a toxic culture. A toxic culture is synonymous with a lack of respect, which, in effect, can lead employees to believe they have license to get away with not performing their role.

If you have toxic employees in your company, we need to have a chat. The future of your company depends on getting rid of these toxic employees and making the work environment more healthy; work on cultivating a culture that’s positive, energetic, and a place where everyone is focused on growing the business and doing their part.

It can be difficult, but simply ignoring a toxic employee because they’re a friend or family member is a bad move.

If you have any questions for me or need help with your toxic employees, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Issues of Transitioning a Company

Here are the problems we see during company transitions and what we do to solve them.

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Over the last year, we’ve worked with many stockholders and business owners who’ve been trying to figure out how to transition their companies. Even after lots of time and expense with financial advisors and lawyers, they still can’t seem to come to a good decision.

Here are some common situations we see:

  • You’re looking to buy out the remaining stock of aging family members. Even if it’s not yet to the point where these relatives no longer want to work, you know you’ll need to make a buyout eventually.
  • You’ve been given the opportunity to buy into a new company, as its stockholders are retiring and they want you to buy them out.
  • You already own a company with different shareholders involved, but one of these shareholders is a problem. They may be putting in little effort, not working altogether, moving money around in unknown ways, or worse. In this case, you have a problem on your hands and are looking for a way to deal with it.
  • You’re looking to streamline a company that has way too many stockholders.
  • You own a business that makes up most of your estate’s worth, but only some of your children or relatives are in the business with you. You want to push stock to those who will be running the business, but you also want to be fair to those who won’t.
  • Instead of family, your business may have some great workers who you want to become owners and stockholders.

These are the issues our clients have on a regular basis. These clients try to come to a decision by pooling advisors, bankers, and attorneys, but it doesn’t quite work. A CPA can’t tell you what to do, due to financial liability. Lawyers can tell you about legal ramifications, but they can’t tell you what to do either.

Fortunately, our firm can give you a clear direction and show you what to do. Here’s a look at our process:

  • We sit down with stockholders to get a clear look at the state of their company.
  • We look at organizational charts, see what the management team looks like, and identify which family members are active or inactive.
  • We figure out what’s going on financially and find good valuations of the company—we want a good idea of the amount of money we’re dealing with.

We need to know the finances in depth because if you’re going to be buying out stockholders, we need an understanding of how you’re going to do it. We also assess the people in the company—we want to know how workers act, what their strengths are, where the talent is (or isn’t), and who has leadership capabilities.

What comes out of this? We build a knowledgeable proposal of what we believe you should do. This proposal demonstrates where the company is, where it needs to go, and what the steps are for reaching the final goal. What you’ll get is a strategy that achieves the best possible outcome with all things considered.

The goal is that, at the end of the day, retiring shareholders are taken care of, new management is taken care of, and buyouts can occur without bankrupting the company. If we’ve done a good job, the family won’t suffer a rift caused by financial decisions and the company will be in good hands. The best and brightest in your organization will have the chance to become owners and carry on the legacy of the company you’ve created.

If you’re going through any of these situations and need a direct, realistic plan of action, reach out to us. We look forward to hearing from you.