Entrepreneur’s Corner: The Benefits of an Advisory Council
Experts recommend considering adding an advisory council to your business. This informal board would provide strategic advice on business management related issues. An advisory council would be in place to provide advice to your business, but unlike a board of directors, they will not actually make the key decisions. Further, while a board of directors often has equity in the business, an advisory council does not. Of course, an advisory council is not right for every business. You will typically see them in businesses that are making $3M-$25M.
The advisory council can identify and help address blind spots that will strengthen your business. They are an excellent resource as you scale and spend more time working on the business than in it.
Passive Investor’s Playbook
Recently, PGP Advisory had great conversation with Charlie Hardage on the Passive Investor’s Playbook. We explored the power of business + commercial real estate investments to build diversification into investors’ portfolios.
PGP Advisory was honored to participate in a roundtable with Madam Under Secretary Lago of the U.S. Department of Commerce and distinguished San Antonio business leaders to discuss how the department and U.S. Commercial Service offices around the world can partner with the local business community to help unrepresented businesses grow through access to global markets.
The takeaway- the US Commercial Services is one of those best kept secrets that needs to be revealed. They want to help. They can open doors overseas that smaller businesses can’t on their own. Stay tuned…we ultimately want everyone to have access to “the room where it happens.”
Active Business Listings
Are you searching for a business to buy? Join PGP Advisory’s exclusive network to receive regular alerts on businesses available for sale. You’ll be the first to know about new opportunities. Receive our Active Business Alerts by subscribing via the link below! Check out a snapshot of our current inventory:
High Growth Mexican Restaurant with Multiple Locations
Cash Flow: $425,000
Location: San Antonio, TX
Profitable Boutique Fitness Gym with Integrated Smart Gym Tech. Deal
Cash Flow: $80,000
Location: San Antonio, TX
Successfully Sold: Barkingham Palace
PGP Advisory served as the exclusive sell-side broker on the sale of Barkingham Palace, a 68-Kennel Pet Boarding and Training business to a Private Buyer.
- Successfully negotiated a win-win deal structure and terms with a strategic buyer
- Sale included both business assets and associated real estate
- Excellent group of deal professionals facilitate a smooth transaction
- Industry, region, and business are positioned for future growth
“As owners seeking an informed exit strategy for our business of 18 years, it was important to us to find an experienced business advisor to navigate the complex, multi-faceted business sale process. Jason Brown had the most methodical approach for the sale of our business and the associated real estate. Jason demonstrated consistent strength in his attention to detail, consistent communications, problem solving negotiations and closing a deal with an amazing buyer that met our exit goals. We highly recommend PGP Advisory to all business professionals seeking the best in all the business services they offer.” (PGP Advisory’s Client)
Advisor Spotlight: Meet Ken
Senior Business Broker
Ken Powers brings more than twenty years of experience helping small and large companies create value through enabling sales growth and driving operational efficiencies. His corporate experience spans a wide range of industries including Healthcare, Technology, Aerospace and Defense, and Automotive. Ken brings expertise in strategy development and implementation, business transformation, and process improvement. Based out of Chicago, he is a seasoned executive who is ready to guide you and your business to the next level.
Ken earned his M.B.A from the University of Michigan, Ross School of Business with concentrations in Strategy and Finance. He earned his B.S. in Mechanical Engineering from Northwestern University.
Be the first to read the latest edition of PGP Advisory’s Business Beat by subscribing to our publications. Click here to opt-in!Read More
Marble Falls, TX (June 2023) – PGP Advisory is delighted to announce the successful sale of the area’s leading Pet Boarding and Training business- Barkingham Palace- which provides exceptional care and accommodation for dogs and cats in Marble Falls and the surrounding areas. PGP Advisory served as the exclusive sell-side advisor on the transaction. Managing Partner, Jason Brown (TX LIC# 719537), served as the seller’s real estate agent on the associated sale of the kennel’s 7.5 acres of property and improvements.
The pet resort business, known for its commitment to the highest levels of pet care, has been an integral part of the local community for many years. Its exceptional reputation and loyal customer base have made it a highly sought-after investment opportunity. After an extensive search for the right buyer, we are excited to have found the perfect match.
Our experienced business brokers managed the sale process seamlessly, ensuring a smooth transition for both the previous owner and the new proprietor. The buyer, a dedicated animal lover and experienced entrepreneur in the pet services space, brings a wealth of expertise to this venture, and will continue to build on the company’s well-established dog boarding and training capabilities.
The success of this deal resulted, in part, from the strong demand for well-run businesses in the pet industry, driven by the growing number of pet owners and their desire for reliable, safe pet care services. We expect to see additional acquisition activity in our region, presenting a fantastic investment opportunity for buyers in the space.
At PGP Advisory, we take great pride in connecting buyers and sellers to achieve mutually beneficial outcomes. Our team of seasoned professionals ensures that every transaction is handled with confidentiality, diligence, and expertise. We are committed to empowering business owners to achieve their goals and helping aspiring entrepreneurs find their dream enterprises.
We would like to extend our heartfelt congratulations to both the seller and the buyer of Barkingham Palace. We are confident that the business will continue to thrive under its new management, providing pets with the exceptional care they deserve.
“As owners seeking an informed exit strategy for our business of 18 years, it was important to us to find an experienced business advisor to navigate the complex, multi-faceted business sale process. Jason Brown had the most methodical approach for the sale of our business and the associated real estate. Jason demonstrated consistent strength in his attention to detail, consistent communications, problem solving negotiations and closing a deal with an amazing buyer that met our exit goals. The process was overwhelming for us, but Jason’s calm and friendly approach with all parties involved left us more than confident we were in good hands. We highly recommend PGP Advisory to all business professionals seeking the best in all the business services they offer.” (Seller Client)
For more information on how PGP Advisory can assist you in buying or selling a business, please contact us at (210) 580-4178. We look forward to helping you achieve your business objectives.
About PGP Advisory:
PGP Advisory is a leading business brokerage firm dedicated to facilitating the buying and selling of businesses across various industries. With a team of experienced professionals and a commitment to exceptional service, we empower entrepreneurs and business owners to navigate the complexities of the market and achieve successful outcomes.
Disclaimer: This announcement is for informational purposes only. Any information regarding the sale of the pet boarding business is subject to the terms and conditions agreed upon by the parties involved.
As the federal government and the state governments look for more ways to bring in money, the independent contractor status is a likely place for them to look. After all, by using independent contractors rather than employees, employers don’t have to withhold taxes, provide workers’ compensation, contribute to unemployment compensation, or provide any benefits such as 401-k programs, health insurance or other benefits. Plus you can use and discontinue independent contractors as needed.
Certainly, in this age of home-based businesses, the use of outside sources makes a lot of sense. Outsourcing a lot of business needs has been done for years and will only increase with growth of small business. Most one-person and small businesses don’t need full-time employees. Many requirements can be outsourced to independent contractors who in turn outsource many of their requirements.
It is the use of workers who are classified as independent contractors, but are really employees that can cause legal issues. FedEx Ground has been in the middle of this type of legal dispute for several years. FedEx claimed that their drivers were franchisees and therefore independent contractors; several drivers (and later the IRS) challenged that status, claiming that the drivers were really employees.
Here are some basic distinctions between independent contractors and employees:
Lack of employers’ direction is one major difference. In other words, the worker is left to his or her devices and does what the particular job requires without direction from the employer.
Is the worker working primarily for one employer or working for several employers on an as needed basis?
The worker is not in the same general business as the employer. A full-time consultant in the same line of business as the employer might be considered an employee. If the employee has his or her own business and also works for other companies, he probably would be considered an independent contractor.
Just because the worker creates an LLC or even an S-corporation doesn’t necessarily protect both sides from being classified as an independent contractor.
The federal government and the states are narrowing the definition of an independent contractor. One must definitely be truly independent to be considered an independent contractor. FedEx franchises (for lack of another term) wear FedEx garb, have FedEx logos on their trucks, and deliver FedEx packages on defined routes. However, we understand that they buy their own trucks and can sell their FedEx routes. But, consider the old saying: If it looks like a duck, acts like a duck and makes duck-like noises, there is a very good chance it is a duck. The battle goes on, but the penalties for violating the status of your people can be very expensive.
A recent article in the Boston Globe reported that although more attention is on the large, primarily publicly held companies, more and more people are making their living by operating their own businesses. In fact, nationally, over 500,000 new businesses are started every year. What this means is that over 10 percent of workers are “either starting a business or working at one that is less than 3 1/2 years old.” And, as indicated by frequent reports, new businesses create new jobs.
Those people who start businesses generally do not have their own funds available for start-up expenses. This is due in part to the fact that bank and SBA funding is not available to them. In addition, fewer than seven percent of new or prospective business owners will receive actual venture capital funds. So, where does the money come from? Second mortgages, credit cards, and family loans are the most common sources of start-up funds. The Globe added that “over the past few years, more than 80 percent of Inc. Magazine’s Fast 1000 companies have been started with about $50,000 or less.”
The article concluded with a plea for “seed” capital and funding from both public and private sources. Perhaps this article and similar ones will lead the way towards the recognition that those who own and operate their own businesses deserve a less arduous journey toward making the right start.
Small companies are the innovators. The need for large companies to acquire small companies is necessary in order for the former to capture new products and services. According to Fortune magazine, “Big companies almost never innovate. This is unfortunate because innovation is one of the few ways to gain proprietary advantage and stay profitable. It’s not that innovation itself is rare – it’s occurring everywhere. Which means, mostly, elsewhere. And as engineers and inventiveness continue to flourish in China and India, elsewhere moves farther and farther from here. A healthy business must therefore not only innovate more within its walls but leverage innovation elsewhere too.
“So why is innovation so hard for big companies? The main reason is that innovative people tend to prefer working in smaller organizations that have more focus and less bureaucracy. Even in small companies, adopting a large-company style can frustrate the innovators.
“The problem with large companies isn’t that they fail to do large and seemingly ambitious projects; it’s that they fail to do small, quirky, controversial projects – that have the potential to grow. (If everyone thinks an idea is okay, how can it be innovative?) A large organization – its missions threatened by new ideas – is often incredibly hostile to its own innovators; the antibodies to change are strong.”