ATLANTA–Strong employment gains during the first quarter of 2019 – particularly in hospitality, retail trade and temp employment – were most likely due to one-off factors, such as hosting Super Bowl LIII on top of other championship games, according to Rajeev Dhawan of the Economic Forecasting Center at Georgia State University’s Robinson College of Business.
“Georgia’s first quarter headline job gains were stellar, but there were one-time factors at play,” Dhawan wrote in his “Forecast of Georgia and Atlanta” released May 22, 2019. “Since there is not another equivalent big event on the horizon, the momentum created is already moderating as evident in April’s job loss numbers, which were concentrated in these hospitality and retail sectors.”
Annual employment benchmarking performed by the Bureau of Labor Statistics in March revealed Georgia’s job additions were downgraded from 103,500 in previously reported data to 89,000 in the benchmarked numbers. Analysis also revealed that globally connected sectors (such as corporate, manufacturing and information) showed continued moderation in job growth.
“Job growth moderation in globally connected catalyst sectors will trickle down into domestically demand driven sectors, (retail trade, hospitality) and result in a continuation of moderation of overall employment growth,” Dhawan said.
Metro Atlanta is expected to experience moderation similar to the state overall, according to the forecaster, especially because Atlanta contains most of the state’s Fortune 1000 companies.
“One continuing concern is where to find all the tech jobs we read about in the media,” Dhawan said.
His hypothesis is that some technology jobs are being counted in other sectors.
“Georgia is home to many technology companies in healthcare, particularly in the Atlanta area (GE Healthcare, Intermedix and McKesson Technology Solutions) and finance companies (Global Payments, NCR and TSYS),” Dhawan said. “Tech jobs may be counted in those sectors instead.”
Looking beyond Atlanta, recent job manufacturing announcements have brought positive news. The state announced groundbreaking on the Georgia International Trade Center in Effington County, and Plastics Express, a resins manufacturer, announced two new facilities in Savannah.
Highlights from the Economic Forecasting Center’s Report for Georgia and Atlanta
- Georgia employment will add 76,600 jobs (14,700 premium jobs) in 2019, 61,700 jobs (11,200 premium) in 2020 and 53,500 (9,700) in 2021.
- Nominal personal income will grow 4.4 percent in 2019, another 4.9 percent in 2020 and 5.0 percent in 2021.
- Atlanta will add 54,400 jobs (8,900 premium jobs) in 2019, 40,600 jobs (8,000 premium) in 2020 and 36,300 jobs (7,400 premium) in 2021.
- Atlanta housing permitting activity will fall 21.2 percent in 2019, decline 8.8 percent in 2020 and fall another 3.5 percent in 2021.
By Peter Siegel, MBA is the Founder And Administrator of BizBen.com
When it comes to selling your business, the right words matter. Using the wrong words can prevent or delay a sale, says Peter Siegel, Founder of BizBen.
When you’re selling a small business online, the first 30 to 45 days are critical. So Siegel says you want to fine tune your text before posting your business for sale online!
He offers a glossary of “Best Words & Phrases” and recommends using them in your copy, but only if they are true. And he also recommends avoiding the “Worst Text & Phrases.”
Best Text & Word Phrases To Use In Your Business For Sale Ads
Good Books And Records
Real Estate Included
SBA Loan PreQualified
Owner Is Retiring
Owner Carry Back Note
Health Forces Owner To Sell
Owner Will Carry
High Adjusted Net Income
Provable Cash Flow
Staff In Place
For Sale By Owner
Training And Support Provided
Employees In Place
Management In Place
Easy To Learn
Training Will Be Provided By Owner
Room For Growth
POS System In Place
Updated Client Database
Good Track Record
Owner Will Train
Owner Will Carry A Note – Help Finance The Deal
Long Lease In Place
Great Lease Terms
Will Cooperate With Brokers And Agents
Worst Text & Word Phrases in Biz for Sale Listings
Owner Must Sell
My Loss Is Your Gain
No Training Provided By Owner
Don’t Let This Opportunity Slip Away
Will Sell Quickly
Moving Must Sell Quickly
Location, Location, Location
Must Check This Out
Act Fast Before It’s Gone
Priced To Sell
Will Not Last
In A A+ Location
Must Move Quickly
Don’t Lose Out
Dumb Advertising Strategies & Text Choices:
– Using All Capital Letters On Words
– Listing No Financial Information (Or Very Little)
– Giving No Selling Price or Price Range
– Not Giving A General Location
– Giving Very Little Information In Posting
– Using Multiple Exclamations – like !!!!!!!! to make a point, etc.
About The Author: Peter Siegel, MBA is the Founder And Administrator of BizBen.com (established over 20 years!) and is a Business Purchase Financing expert (SBA and Non-SBA financing) – see BizBuyFinancing.com. He consults daily with California business buyers, owner/sellers, business brokers, and agents regarding buying and selling California small businesses. Call him today regarding advise on finding, buying, selling, financing a business purchase/getting pre-qualified (ask about the BizBen ProBuy and ProSell Programs for business buyers and owner/sellers, and brokers). He’ll also give you referrals to the best resources on buying and selling businesses, brokers, etc and a FREE copy of his eBooks “How To Find And Buy A California Business Successfully” or “Valuing And Selling A California Business Successfully” with any personal consultation/service. Peter Can be reached direct at 866-270-6278 (if you get voicemail please leave some good times to reach you and a detailed message – thanks).Read More
Before buying any business, a seller must ask questions, lots of questions. If there is ever a time where one should not be shy, it is when buying a business. In a recent article from Entrepreneur magazine entitled, “10 Questions You Must Ask Before Buying a Business”, author Jan Porter explores 10 of the single most important questions prospective buyers should be asking before signing on the dotted line. She points out to remember that “there are no stupid questions.”
The first question highlighted in this article is “What are your biggest challenges right now?” The fact is this is one of the single most prudent questions one could ask. If you want to reduce potential surprises, then ask this question.
“What would you have done differently?” is another question that can lead to great insights. Every business owner should be an expert regarding his or her own business. It only makes sense to tap into that expertise when one has the opportunity. The answers to this question may also illuminate areas of potential growth.
How a seller arrives at his or her asking price can reveal a great deal. Having to defend and outline why a business is worth a given price is a great way to determine whether or not the asking price is fair. In other words, a seller should be able to clearly defend the financials.
Porter’s fourth question is, “If you can’t sell, what will you do instead?” The answer to this question can give you insight into just how much bargaining power you may have.
A business’ financials couldn’t be any more important and will play a key role during due diligence. The question, “How will you document the financials of the business?” is key and should be asked and answered very early in the process. A clear paper trail is essential.
Buying a business isn’t all about the business or its owner. At first glance, this may sound like a strange statement, but the simple fact is that a business has to be a good fit for its buyer. That is why, Porter’s recommended question, “What skills or qualities do I need to run this business effectively?” couldn’t be any more important. A prospective buyer must be a good fit for a business or otherwise failure could result.
Now, here is a big question: “Do you have any past, pending or potential lawsuits?” Knowing whether or not you could be buying future headaches is clearly of enormous importance.
Porter believes that other key questions include: “How well documented are the procedures of the business?” and “How much does your business depend on a key customer or vendor?” as well as “What will employees do after the sale?”
When it comes to buying a business, questions are your friend. The more questions you ask, the more information you’ll have. The author quotes an experienced business owner who noted, “The more questions you ask, the less risk there will be.”
Business brokers are experts at knowing what kinds of questions to ask and when to ask them. This will help you obtain the right information so that you can ultimately make the best possible decision.
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A recent article on Businessbroker.net entitled, First Time Buyer Processes by business broker Pat Jones explores the process of buying a business in a precise step-by-step fashion. Jones notes that there are many reasons that people buy businesses including the desire to be one’s own boss. However, he is also quick to point out that buyers should refrain from buying a business that they simply don’t like. In the quest for profits, many prospective owners may opt to do this, but it could ultimately lead to failure.
Step One – Information Gathering
For Jones, there are seven steps in the business buying process. At the top of the list is to gather information on businesses so that one has an idea of what kind of businesses are appealing.
Step Two – Your Broker
The second key step is to begin working with a business broker. This point makes tremendous sense; after all, those new to the business buying process will benefit greatly from working with a guide with so much experience. Business brokers can gain access to information that prospective business owners simply cannot.
Step Three – Confidentiality and Questions
The third step in the process is to sign a confidentiality agreement so that you can learn more about a business that you find interesting. Once you have the businesses marketing package, you’ll want to have your broker schedule an appointment with the seller. It is vitally important that you prepare a list of questions on a range of topics. There is much more to buying a business than the final price tag. By asking the right questions, you’ll be able to learn more about the business and its long-term potential.
Step Four – Evaluation
In the fourth step of the business buying process, you’ll want to evaluate all the information that you have received from the seller. Once again, a business broker can be simply invaluable, thanks to years of hands-on experience, he or she will know how to evaluate a seller’s information.
Step Five – The Decision
In the fifth step, you’ll need to decide whether or not you are making an offer. If you are making an offer, you will, of course, want it to be written and include contingencies.
If your offer is accepted, then the process of due diligence begins. During due diligence, you and your business broker will look at everything from financial statements to tax returns. You will evaluate the company’s assets. Again business brokers are experts at the due diligence process.
Buying a business is an enormous commitment. Making certain that you’ve selected the right business for you is one of the most critical decisions of your life. Having as much competent and experienced help as possible is of paramount importance.
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If you’re like most business owners, you look forward to the day that you can hand over the keys to your children.
But there are some issues to consider, says Josh Patrick, the owner of a wealth management business, Stage 2 Planning Partners, that focuses on the strategic issues faced by the owners of private businesses. In a recent Divestopedia article, “Kids Take Over the Business? 8 Things to Consider,” Patrick examines what it takes to make a family business transition successful
1. Rules for Joining the Business.
Letting a child to take over a business right after finishing his or her education could be a huge mistake, Patrick says. After all, how can a parent be sure that a child can handle operating the business without some proven experience under his or her belt? Make sure your child pass the test any other employee would have to pass to join the company. Establish some rules for children to take over the business.
2. No Fake Jobs
Don’t create a job for your children. Senior decision-making roles should be earned and not handed out as a birthright. The end result of this approach could create a range of diverse problems.
3. Pay Should be Fair
Quite often when a child takes over a business, his or her pay is either far too high or far too low. Other employees will notice how your children are being treated. “Pay needs to be on your company scale,” Patrick says. “No more, no less.”
4. The Kids Must Grow the Business
Business growth must always be kept in mind. When having your children take over a business, it is essential that they have the ability to not just maintain the business but grow it as well. If they can’t handle the job then, as Patrick notes, you are not doing them any favors. Perhaps it is time to sell.
5. Stock Ownership
Only children involved in the business should own stock, Patrick recommends. Otherwise, some children will feel invested in the business and others will not and may way to cash out. This issue can become a significant problem once you, as the business owner, either retire or pass away.
6. Sell, Don’t Give Your Business Away
Patrick recommends that a business should only be sold to children and not given outright. A child who simply given a business hasn’t earned it and may not perceive its value. Additionally, if a child or children buy the business, estate planning becomes much more straightforward.
7. Let Go
Once you have sold their business to your child, “let go.” At some point, you will have to retire. Regardless of the outcome, you’ll ultimately have to step back and let your children take charge. It’ll be easier to let go if you transition into something else that interests you.
8. Your Kids Will Change Things.
Your children will change how things are done. This fact is simply unavoidable and should be embraced.
Working with an experienced business broker is a great way to ensure that selling a business to your child or children is a successful venture. The experience that a business broker can bring to this kind of business transfer is quite invaluable.
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