16: Problems Manufacturing Businesses Face with Jason Pittman
As a business owner in manufacturing, what should you be looking out for when exit planning, especially in the metal and food production fields? This week on Build Value By Choice, Nana is joined by President and CEO of the business brokerage company, ExitAdvisor, LLC, Jason Pittman. Jason is not just an expert but is also from the Chicago area which is a hotbed for the manipulation of metals and food processing industries.
About 41% of owners prefer family transitions, 19% are looking towards an employee stock ownership model, 14% are leaning towards a management buyout, only 7% want to be bought out by their partners, and 10% to be bought out by an external partner.
The wholesale and food production side will probably have lower margins as you’re supplying large retail chains. One of the first problems you will run into is running out of space.
Inflation tops the list of concerns for small business owners, followed by supply chain issues, then labor, and Covid concerns.
Companies looking to tackle their labor issues should look to get their name out there to young people who will shortly be entering the workforce.
Talk to your accountant about changes you can make now to increase the value of your business. Things like vacation homes and travel expenses make your business less attractive to potential buyers.
‘A lot of people are planning for years on their future and all they’ve really done is place an arbitrary number on their business worth’
‘Studying the success of somebody without understanding their drivers for success could be a disaster’
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ABOUT THE GUEST
Jason is a business broker and certified value builder in the industrials and manufacturing industries. He’s the President and CEO of the business brokerage company, ExitAdvisor, LLC.
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.
ABOUT THE HOST
“I am an entrepreneur and ex-Corporate Executive who’s applying his experience and knowledge from working in various ways to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business and increase value through action-oriented education and implementation of strategies and tactics to make their business sellable even if they are not planning on selling. Known for establishing an environment for personal growth and development. My multicultural background equips me with the intuitive understanding of different cultures and how they impact business owners.”
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