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According to the Business Insider, the National Federation of Independent Business released a November 2017 survey that showed small business optimism is the highest it has been since the Reagan years. One of the other exciting indexes showed that job creation plans were up 6 points (24% of respondents said that they plan to create new jobs). Juanita Duggan, the FNIB’s president and CEO said, “Small business owners are exuberant about the economy, and they are ready to lead the U.S. economy in a period of robust growth.”

For more information check out:

http://www.businessinsider.com/nfib-small-business-optimism-hits-highest-level-since-1983-2017-12

The state of Florida has created a non-profit corporation that helps veterans transition to civilian life in Florida. Veterans Florida educates veterans on how to open and run their own businesses. It also links veterans with employers as well as supplying grants to employers that will hire and train veterans.
In the Florida Panhandle, Veterans Florida Entrepreneurship Program offers tuition-free online and on-campus instruction in the “Lean Startup Method” for veterans at the University of West Florida and Florida A&M University in Tallahassee. A veteran must be either honorably discharged, or have one year left of active duty service, or be a current or former member of the National Guard/Reserves. The program also provides veterans with access to business leaders and mentors.
Bobby Carbonell, the executive director of Veterans Florida, says that military service makes veterans uniquely suited to owning and running their own businesses. He adds that veterans have the character traits of initiative, attention to detail and tenacity that will help them succeed in business.
Three veterans, David Glassman, Erick Moody and Christine Yerkes, credit the program with helping them to focus on making their businesses successful. They were able to set goals, build structure, fine-tune business plans and research their markets. The program’s mentors tailor each individual’s program to their specific needs.
For more information on Veterans Florida check veteransflorida.org
For the article, “Veteran Entrepreneurs Victorious in Florida”, 850 Business Magazine, go to http://www.850businessmagazine.com/October-November-2017/Veteran-Entrepreneurs-Victorious-in-Florida/

Carson Wilber wrote an interesting article, “Northwest Florida is the Next Silicon Valley. Here’s Why”, that discusses the various merits of Pensacola and the Emerald Coast’s technological advances. He discusses 3 main reasons that support the area’s ability to be the next big tech sector.

1. NW Florida has the highest concentration of military bases in the nation that host research and development of scientific and technological advancements.
2. Florida has a low corporate tax rate of 5.5% and offers other incentives for new businesses.
3. The University of West Florida has top school rankings, $20MM in state funding this year and has many accomplished alumni in the defense and aerospace industries.

The University of West Florida’s Innovation Institute, Innovation Campus Network, Center for Entrepreneurship and its Center for Cybersecurity have all gained national recognition in the world of technology and cybersecurity. UWF will begin a “first of its kind” Robotics and Intelligent Systems PhD program. UWF also earned the NSA’s classification as the National Center of Academic Excellence Cybersecurity Regional Resource Center for the SE region of the US.

NW Florida has numerous outreach programs for middle and high school aged students such as the STEM programs (Science, Technology, Engineering and Mathematics). The area is also the home to many other nonprofits, including Invictus Knowledge Institute and Innovation Coast as well as a vast array of private businesses that support the Emerald Coast’s advancements in the technological fields.

For more information, please read Mr. Wilber’s article: https:/www.linkedin.com/pulse/northwest-florida-next-silicon-valley-heres-why-carson-wilber/

BizbuySell Insight found the sale of small businesses were up 29% from the first quarter of 2016. They also reported that these sold businesses grossed an 8.4% increase in median revenue from 2016 Q1. Median cash flow for these same businesses was also up 6.6% from the year before. These are the highest totals of key financial indicators that BizBuySell has recorded since they began tracking in 2007!

2017 Q1 data shows that the positive trend in the sale of businesses and their increased financials mirror the improving U.S. economy and stock market. According to Bob House, the president of BizBuySell, “A strong supply of attractive listings and qualified buyers, and an administration looking to reduce costs for small businesses should fuel the market over the upcoming months.”

For more information: http://www.bizbuysell.com/news/media_insight.html

Jay Offerdahl of Viking Mergers and Acquisitions brings up a valid point when he recommends that business owners enlist the services of an experienced business intermediary. “Most people wouldn’t try to sell their house without a real estate agent, file a tax return without the guidance of a CPA, invest without a financial advisor or go to court without a lawyer, so why go about selling your greatest asset yourself?”
An experienced business intermediary will bring you, the seller, the following benefits:
• Confidentiality
• Allows Seller to Concentrate on Running the Business
• Large Network of Qualified Buyers
• Marketing
• Valuation
• Experience
• Negotiation
• Motivation to Close the Deal
• Resources: CPAs, attorneys and lenders
• Assist buyers in obtaining financing
Business owners that sell their businesses on their own often deal with breached confidentiality, wasted time with buyers, poor marketing and an undervalued and poorly structured sale.
The business intermediaries at Emerald Coast Business Intermediaries have over 30 years combined business intermediary experience along with years of financial and marketing experience. Let us save you time and energy when you are ready to sell your business.

The University of Alabama’s Culverhouse College of Commerce conducted a survey that shows business confidence for the state of Alabama went up 2.5 points to reach 65.2 in the second quarter of 2017. This is a 10 year high for the Alabama Business Confidence Index! Business leaders in Alabama are expecting rising sales, profits, hiring and capital spending to continue to rise. They are most confident in forecasting increased sales.

The survey panelists had high confidence for businesses in the Wholesale Trade category and especially businesses in the “All Other Services” category. The “All Other Services” category includes professionals in Recreation and Accommodation, Education and the Arts.  The Confidence Index for the Finance/Insurance/ & Real Estate category and the Construction category were also up significantly.

Almost 70% of the panelists forecast continued growth in Alabama’s economy for the next quarter. All three levels of businesses: small (under 20 employees), mid-sized (20 to 99 employees) and large (greater than 100 employees), also have a high level of confidence in the U.S. economy.

Information for this article comes from:

http://cber.cba.ua.edu/abci/results/ABCI-Q2-2017.pdf and The Birmingham Business Journal 4/4/17

According to Dispatches from DeFuniak, the Walton County Commission has partnered with the city councils of DeFuniak Springs and Freeport to create a plan for the installation of water and sewer lines along Hwy. U.S. 331 South. This would be a huge step forward in the development of the area between both municipalities and the unincorporated areas of the county.

This project, along with the soon to be completed widening of U.S. Hwy. 331, would have an enormous effect on Walton County for many years to come. The infrastructure project would encourage new manufacturing and retail companies to locate to this area.  The commercial development would also enhance the creation of new residential subdivisions.

The plan hopes to have funding from the area’s share of the settlement from the Deepwater-Horizon oil spill.  State Senator George Gainer and two other senators sponsored a bill to ensure that NW Florida would receive its fair share of the BP funds. This unique bill specifies that the money can only be used on infrastructure and education projects. Walton County, DeFuniak Springs and Freeport could receive up to $30 million to fund this very valuable project. We look forward to the long-term growth and prosperity that this plan would bring to the area for future generations!

According to Florida’s Bottom Line, Florida’s economy had a solid year of growth in 2016. The Small Business & Entrepreneurship Council ranked Florida 5^th in the “Small Business Policy Index 2016”. This means that Florida has some of the most policy-friendly measures for entrepreneurs and small business.  Some of the policy measures include a large range of tax, regulatory and government spending, and performance measurements. These serve to impact the overall economy of the individual states.

Florida’s Bottom Line also refers to an article from the SunSentinel that says Florida’s economy has grown beyond trade and tourism. It’s four large industry categories include: trade,transportation and utilities; professional and business services; education and health care; and the hospitality and leisure sector. These have accounted for 80% of jobs created since Feb. 2010.

Another Florida accolade cited in the magazine says that Florida ranks 2^nd as the Best State for Business according to Chief Executive Magazine, May 2016. Five hundred and thirteen CEOs ranked states that they were familiar with on workforce quality, living environment (which includes cost of living, the education system and local and state attitudes toward business) and the friendliness of the state’s tax and regulatory measures.

Other highlights noted in Florida’s Bottom Line help support the statement that 2016 was a great year for the business climate of Florida. 2017 looks bright for the business owners of Florida!

Small business optimism is at a record high after the recent elections. Owners see opportunity for growth, and reduction in taxes and regulations. See the complete article HERE. It should also be a great time to sell your business. But if you are looking to sell your business, you need to be planning your “Exit Strategy” now.

Most small business owners run their business for years with one thought in mind, “Minimize my taxes and provide the most money to me”. Tending to keep whatever type of entity they started with (Corporation, S Corporation, LLC or Sole Proprietorship), they keep taking every advantage to shelter income from taxes, because they know how to do it for the type of entity they have.

After several years, they decide it is time to sell. If they have not spent time with their professional advisors (CPA, Attorney, Financial Advisor, and Business Intermediary), other than at the end of the year for tax purposes, they may be shocked to learn that there is a big tax liability due.

Exit planning should be done five years before the sale of a company. This rarely happens, but if you take one thing away from this blog, “START doing it Now” if you think you might sell in the next five years.

I want to briefly discuss two items that can cause an unnecessarily large tax bill on the sale of a business. The first deals with tax on the type of company entity. Most small businesses under $5 Million in value will be sold as an “Asset Sale”. There are many reasons for this, mostly dealing with the financial and legal liabilities of a sale of the “Stock or Shares” of the company. If your C Corporation is sold in an asset sale, the tax you pay may be twice what it would be on the sale of an S Corporation or other pass through entity like an LLC. You can, during the exit planning phase, elect to treat your Corporation as a Subchapter S. Here is the kicker, it must be done five years before the sale of your company.  Another area to watch is “Recapture”. When you use accelerated depreciation to minimize taxable income, you may have a big tax bill upon the sale of your company. This can be minimized, but the planning must start long before the sale happens.

At Emerald Coast Business Intermediaries, we believe in working with professional advisors in a team approach to business transfer. You, as a business owner, should also. After all, when you sell a business, it is not only the price, but how much you get to keep.