Ticking Economic Time Bomb Threatens Many Small Business Owners

Business gurus for years have been teaching that "cash flow is King." But for every year that a business owner owns a business, something else also grows in importance. What is more important than cash flow? The answer is simple; business liquidity. While cash flow continues to be the life blood of a business, actual "business liquidity" becomes increasingly important to owners with each passing year of business ownership.

What's the difference between cash flow and business liquidity?

CASH FLOW is the amount of cash or economic benefit "thrown off" by an operating business that allows, 1) the owners/shareholders to receive adequate compensation for their services, 2) the business to service acquisition debt, 3) the business to grow by investing in new technologies, equipment, personnel, and market share, and 4) the business to return cash or growth on the owners'/shareholders' capital invested in the business enterprise.

LIQUIDITY is: The ability of the owners/shareholders to convert their current ownership in a business either into cash, or an income stream to the owners/shareholders, that succeeds the shareholders' actual participation in, or ownership of the business.

As an experienced CPA, business valuator and business broker, Grover Rutter has seen the financially devastating effects when business owners do not take the necessary steps to improve and maintain their company's LIQUIDITY FACTOR.

At every possible opportunity, Mr. Rutter speaks to Rotary Clubs, Chamber of Commerce events, and other business groups, including radio audiences, about what steps business owners must take to assure a high LIQUIDITY FACTOR.

"I would like to have the opportunity to talk to every business owner in North America, if I could," Rutter explains. "Since I don't have the time or resources, I wrote How to Sell Your Business for the MOST Money (Secrets to Unlocking the Treasures Hidden in Your Business). Rutter hopes to spread his business gospel about the “liquidity factor” with the help of his new book. He hopes to increase public awareness of this problem because he fears that the “golden years” for many self employed people won’t be so golden. "This message about liquidity of small businesses has been mostly overlooked by many of the mainstream business advisors. It is just too important for business owners to ignore," Rutter explains.

Does his new book hit the target? Here is what one reader wrote:

"I read a good portion of your book last evening and I am so impressed by the tenor and insight of your advice. It is a very easy read but will be an important resource as I look to add value to my clients. Thank you {…} Best regards." Jim D. (Investment Advisor in Ohio)

While Rutter acknowledges that his book may not become a number one best seller (“because it just isn’t a very sexy topic,” Rutter chuckled), he does hope to get the information to as many business owners as possible. His new book is currently available at www.lulu.com/businessadvisor and will also be available on most major online bookstores by June 1, 2006.

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