Risk Managment
Tony Kereluke • May 29, 2019
The Word Risk is Not Always a Negative One
Often times in life we all need to take a risk or two to really strive forward to a next level. Taking a risk does not mean one has to risk the family farm and hopefully it works mentality. There are business and calculated risks one can look at, and a risk can simply be leaving a job that you do not like or are overworked at and changing a new path. That is a calculated risk that one must look at from time to time in life. Try and say to yourself when feeling fear of even taking a small risk that it is ok to feel this way. Ask yourself what is the worst case scenario and will the whole house come crashing down if this doesn't work? Fear is often the reason why people do not succeed. As they let this fear take over versus blowing right through the fear or telling it to go away.
Let me ask you have you ever met a successful person in Canada or around the globe that didn't take any risks? or let fear control them on making a decision? There really isn't many and would be hard pressed to find one around.
A few suggestions to combat fear and risks:
- Avoid watching the negative news on TV. It is fear being planted inside your mind and one suggestion is to read the newspaper as then you can choose to read the information you wish to read.
- Try and embrace change and fear and let it be known that it is there and then choose to run through it. Then once you do that you are on the other side of fear and you run it now.
- Try not to live in the wish i could have world or i wish i should have. Be a doing and not a wisher.
- Get out a dream road map. Write down where you want to go and read it over and keep on updating it. Have you ever met a successful person that did not have dreams and goals? ZERO around so start one today.
Learn what buyers look for in a business, from cash flow and recurring revenue to owner dependence, risk, systems and growth potential.
Learn how to organize financial records, document earnings, identify add-backs, and prepare for buyer due diligence before selling your business.
Learn when to sell your business, when to wait, and how market conditions, valuation, buyer demand, and exit strategy affect your decision.
Learn the biggest mistakes owners make when selling their business and how to avoid pricing, timing, confidentiality, and negotiation issues.
Learn how to sell a business confidentially without alerting staff or competitors. Proven strategies to protect value, control information, & close discreetly.
Learn how long it takes to sell a business, the key stages involved, and what to expect from preparation to closing so you can plan your exit with confidence.
Learn how to value your business using SDE, EBITDA, and market multiples. Understand key factors that affect valuation before you sell your business.
What's Trending? Businesses With Cash Flow & Hard Assets/Safe Haven's With the recent turmoil in stocks correcting and swinging around like a yo yo in a kids playground. Individuals & smart money investors are seeking out hard assets/ small businesses & franchises with cash flow. I receive hundreds a calls a month from buyers looking for cash flow and focused on hard assets. This sounds like a solid simple plan of attack and is working for a select group of smart money investors. Safe haven demand is at the highest level in a very long time. No one knows what will happen tomorrow or next month with the market or economy so why not take control your own future this way. If you are looking to diversify away from financial instruments and be in the drivers seat of your hard earned work. Why not start a side hustle? Or partner up to buy a franchise business in a great location? Or add onto your existing business portfolio and purchase another business. This I am seeing a demand in calls & especially over the past 6 months. I am a big fan of physical bullion gold and silver and have invested a great deal in this space over the past 5 years and returns are there. Here is a chart of Gold 5 year and one year as of MSN money app in USD funds. Gold Per Ounce 3405 USD +81.80 (+2.46%) Today USD PAST YEAR • AS OF MAY 6, 10:05 A.M. EDT +1,073.20 (+46.04%) USD PAST 5 YEARS • AS OF MAY 6, 10:06 A.M. EDT +1,659.10 (+94.98%) USD While the S +P index YTD to date is seeing a loss YTD YTD • AS OF MAY 6, 10:06 A.M. EDT -282.47 (-4.80%) 33.40 Silver Per Ounce +0.90 (+2.76%) Today USD PAST YEAR • AS OF MAY 6, 10:01 A.M. EDT +5.99 (+21.89%) USD YTD • AS OF MAY 6, 10:02 A.M. EDT +4.12 (+14.08%) This type of hard physical asset is yours only and holds no counter party risk. It is recommended to have safe storage in higher amounts & can always be sold and turned into a fiat currency anytime you wish. It's a flight for safety and a safe haven, and is working as world fiat dollars de-value with inflation chewing away slowly at it. One suggestion is to not do what everyone else does. In fact you may want to look at the opposite first. Then do your own due diligence. While I do not give out financial advice you are welcome to speak with your advisor who most likely will not talk about gold or silver or investing into a small business and will push there financials instruments so they can obtain a fee from there bank. So it is important to talk to many others in different fields. Try not to trust one source to park your cash or plan your retirement. It's just too risky to let it all ride on whim of a financial instrument and hope it keeps going up. As there is nothing better than controlling your own destiny in life. Master your own destiny is the way to go and work for it and build it they will come.