Business Acumen – Buying Out a Small Business Partner

Looking for buying out a partner generally refers to businesses searching for information on how to purchase the shares of another partner. Partners may decide to leave a business if they are retiring, relocating, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner is to determine how much the partner’s shares are worth. This can be determined a number of ways. Value could be based on the market value of the company, the amount invested by the partner, or a pre-determined price detailed in a partnership agreement.

The next step when looking to buy out a partner is to find capital to finance the buy out. Though most lending institutions do not provide loans specifically for buying out a partner, they do offer loan programs that can be used towards any general business purpose. Most buyouts require large sums of money, and to apply for a large loan, lenders usually require personal and company financial documents, a business plan, and credit reports. Collateral is also required for secured loans, which can provide lower interest rates than unsecured loans.

If a business is looking to replace a partner, it may be able to obtain funding from an investor. Partner investors contribute large sums of capital in exchange for a portion of the business’s profits and a voice in the business’s decisions. In the case of buying out a partner, an investor could purchase the shares of the leaving partner and become part of the business.

Small business buying out partner usually refers to small business owners searching for information regarding buying out another business partner. Partners may wish to sell their shares of a company when they retire, relocate, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner in a small business is determining the value of the partner’s shares of the business. To resolve this problem, many businesses with two or more owners create and sign a partnership agreement that predetermines the value of every owner’s share of the business. For partnerships that do not have an agreement like this, the value can be determined by looking at how much the partner invested in the business or how much the business is currently worth on the market.

Once all partners have agreed on a selling price, the owner buying out must find financing. Most lenders don’t offer loans specifically for buyouts, but their loans can usually be used for any business purpose. Buyouts typically require large sums of money, and lenders have more extensive requirements for large loans. To get a lowered interest rate, many borrowers use personal or business assets to secure the loan.

Another source of financing for a small business buying out a partner is another investor. If a business owner can find an investor who is willing to purchase the other partner’s shares, then the owner will not have to take out another loan. The business owner simply gets a new partner to work with.

Entrepreneurs Building Businesses Upon Solid Business Acumen and Inner Spiritual Wisdom

The ePreneur is an up-and-coming concept in the world of entrepreneurs. The “e” in ePreneur stands for “enlightened.” Well, I’m not so sure about the enlightened part! Perhaps it’s better to say that the e encompass all entrepreneurs who desire to build their businesses upon the foundational mix of solid business acumen and inner spiritual wisdom.

Today’s ePreneur apologizes neither for being financially prosperous nor for including the spiritual dimension in their business. The accumulation of wealth and success goes hand-in-hand with being spiritual, to the ePreneur.

If You’ve Seen One Prosperity, You’ve Seen Them All

Many people mistakenly believe that there are many definitions of prosperity. I disagree. There is but one definition of prosperity with limitless ways to manifest it in your life.

Prosperity is a successful, flourishing, and thriving state of being. It is most commonly associated with being financially prosperous. It’s about both energetic alignment with the state of prosperity and to the manifestation of things. The key here is the order in which things are done. First comes alignment with prosperity. Then comes manifestation. Get them backwards and what do you have? Greed.

Many people struggle with their desire to be rich. They think that being rich will interfere with being spiritual. First of all, we are all spiritual beings, so “rich” hardly has the ability to interfere with that. We give rich too much credit. Being rich and successful is simply a manifestation of the aligned state of prosperity.

The Difference between Need and Desire

“More” is a great feeling. Or is it? Seems to me there are really two sides of more. There is the side of more that comes from incompleteness and the side that comes from completeness. One holds the energetic vibration of lack and scarcity; the other holds the energetic vibration of prosperity and abundance.

Which type of more do you have? Let’s find out. Think of something you want more of. More money? More success? More time? Think about your more for a moment.

oDoes your more feel like a longing for something or a wanting more of something? If it’s longing, that’s need.

oDoes your more feel like excitement to receive or craving to have? If it’s excitement to receive, that’s desire.

oDoes your more feel like the experience of connection and the feeling of completeness or the experience of disconnection and the feeling of incompleteness? To find out the difference, read on.

Enter, Your Inner Samurai

The experience of connection and the feeling of completeness are signs of your relationship with the Infinite. I call this the relationship you have with your inner knower–your “Inner Samurai.” Connection is the inner part of the Inner Samurai. Completeness is the Samurai part. Both connection and completeness are needed and represent a symbiotic relationship. To come into harmony with your desire is to come into harmony with your Inner Samurai.

When you are connected to your Inner Samurai, desire easily and effortlessly flows forth. You naturally feel joyful and excited about what you desire. That’s because you are in alignment with the Infinite. Conversely, when you are disconnected from your Inner Samurai, you are caught in the illusion of separation, and the stream of flow is disrupted. Lack pours forth in the form of need, from this place.

Sometimes there is a seemingly indistinguishable line between filling a need and expressing a desire. Plus, desire has been given a bad rap: Desiring more is bad and being content with less is good. Enough of that kind of thinking! Desire is a natural part of us. Without judgment, without reproach, desire just is. The ePreneur knows that desiring more isn’t the issue. Knowing the difference between need and desire is.

You Complete Me, Don’t You?

To need something is to believe that some external thing will complete you. Need stems from the belief that without something outside yourself you are incomplete. The quintessential characteristic of need is that the experience of its fulfillment is short-lived.

Need, flowing from incompleteness, attempts to fill a bottomless spiritual hole with material things. To need something is a statement that something needs to change in order for you to be happy. The ePreneur knows that no amount of material stuff can fill a spiritual hole. Only connection to the Infinite can. We begin to manifest what we desire the moment we let go of our external need for completeness.

Interview Question: Can You Give Me an Example of When You Have Had to Demonstrate Business Acumen?

“Can you give me an example of when you have had to demonstrate business acumen?”

This is a very common interview question liked by many employers. In the legal profession this is asked in almost every single interview for solicitors, paralegals and partners.

HR managers and other recruitment professionals in a whole range of different types of interview regularly ask about business acumen, whether these are legal job interviews, accountancy interviews, interviews for managers at a whole load of different levels.

Sometimes employers try to throw a spanner in the works and ask you what the difference is between commercial awareness and business acumen (there isn’t one!).

Quite a lot of people who have been in business for some years have no problem at all answering this question because they have an understanding as to what a commercial organisation is looking for, but students and new entrants to the job market struggle with the whole concept as well as quite a few non-professionals who are advising on careers.

The whole reason for employers asking this question is to make sure that the person they are interviewing actually understands the concept of working for your daily bread.

This means understanding that if you are being paid a salary and the organisation you are working for is dependent on making a profit in order to pay you that salary then you have to contribute to making the profit. If you do not understand this when you are not going to be much use to any employer.

It is a common fallacy amongst graduates that they are joining an organisation in order to further their own career and to gain good experience for themselves. It is often reflected in covering letters and emails and also in CVs. This is completely the wrong attitude to take to job searching. You have to consider every single job from the perspective of the employer. If you do not do this then chances are you will be rejected.

So when you are asked a question about business acumen think what it is you are being asked to understand. If you are speaking to a partner of a very senior organisation, he is expecting you to understand that companies are there to make a profit. Business acumen is demonstrated by understanding that the employer does this in certain ways through marketing, business development, selling to existing clients, performing a job effectively to get repeat business and successfully tendering for business as well.

If you are interviewing with a smaller firm then none of the above is particularly relevant. They are more interested in your own ability at marketing, business development, generating your own clients, making sure that your billing levels are high in order to ensure a good level of profitability and to understand that you are there to make your employer money so that he or she in return can pay you.

If you can demonstrate this very quickly through describing a situation when you have had to show business acumen, you will have answered this question well. This merely needs to be something along the lines of marketing, business development, increasing profits for a company or organisation, or being involved in sales.

Preferably, this needs to be in a work environment so if you are a student try to avoid going back to your young enterprise schemes at school and concentrate on any part-time work you have done where you have identified a way of improving profitability for that particular company.

If you are a professional in a business then try to concentrate on your most existing role and give a demonstration of when you have either increased profitability, increased sales, generated extra work, getting the client, boosted your billing levels or something similar.

Enhancing Business Acumen – The Five Essentials

In order to run an effective, dynamic, and successful organization, leaders must possess sound business acumen. Unfortunately, we are not born with this vital leadership skill, it is cultivated over time. When asked to define business acumen, the response of senior leadership is basic and straight forward. Most believe that business acumen means having financially savvy; but that my friend is only one element of business acumen.

There are five essential components that make up sound business acumen: Intelligence, Strategy, Communication, Innovation, and Accountability. As you review the qualities of each, assess yourself as well as other leaders on your team to see where strengths and weaknesses exist within your organization. Then start on an action plan to close those identified gaps and drive organizational success to the next level.

#1 – INTELLIGENCE: Yes, leaders possessing this component of business acumen are skilled at creating, reading, and analyzing financial reports and budgets. However, they are also at ease when it comes to explaining this sometimes complex information to others. This is a quality that most senior leaders admire and think of when they envision someone with great business acumen. Along with financial savvy, leaders possessing this component of business acumen have an immense hunger to learn more and increase their knowledge and intellect. They not only read business books, magazines and white papers to gain knowledge, but also to glean skills and techniques that can be applied in their line of business and daily work.

#2 – STRATEGY: Leaders possessing this component of business acumen know the key priorities (business objectives) of the organization, and have proactively formulated a written action plan to get the team there. They don’t wait for the strategic plan to come down the pike from corporate, as soon as they get wind of the key business objectives they begin focusing on how their team will contribute to and impact it. Again, having business intelligence is not enough, leaders must also be able to turn all that wealth knowledge into actionable behaviors that will engage an entire workforce or team and drive positive results.

#3 – COMMUNICATION: Leaders possessing this component of business acumen are excellent communicators, both verbally and in writing. They know that simple, clear communication is the key to achievement of the key business priorities and strategy. If you ever observe leaders with great communication skills, you will notice that they communicate clearly up and down the organizational ladder. They can get a point across with finesse at the executive level, and simplify the message with ease to relate it to the day-to-day activities of line staff.

#4 – INNOVATION & RESOURCEFULNESS: Leaders possessing this component of business acumen have the keen ability to work with little, and produce much. They are not limited by a lack of resources, but innovative enough to create new ways of getting the job done effectively and efficiently. While having all of the tools at their disposal to do the job properly would be great, they do not allow the lack thereof to create team dissension or negativity. Their greatest joy comes from being able to overcome barriers and obstacles to create a product or service that is exceptionally better than they ever expected. Leaders who possess sound business acumen are not wasteful, but innovative and resourceful.

#5 – ACCOUNTABILITY: Leaders possessing this final component of business acumen understand the importance of employee accountability in optimizing productivity to achieve success. Without accountability none of the other components that make up sound business acumen (intelligence, strategy, communication and innovation) will be of any worth. In order to hold employees accountable for driving the key priorities of the organization the leader must set the standard or expectation, communicate it to enlist employee buy-in, integrate it into every aspect of the work environment, evaluate employee performance against it, then reward and recognize those who consistently meet and exceed the expectation or standard.

Just like a waterfall, business acumen starts at the top and trickles down throughout the entire workforce. If senior leadership does not possess these essential components, organizational effectiveness and success is not sustainable. Now that you’ve been equipped with some level of clarity concerning business acumen, the next step is to work toward closing your professional gaps. Bottom-line, developing sound business acumen does not start or stop with becoming skilled at analyzing financial reports; developing sound business acumen is multi-dimensional.