One Minute Book Review – Connected

Connected – The Surprising Power of our Social Networks and How They Shape our Lives.
By Nicholas A. Christakis and James Fowler.

The authors propose the overriding Three Degrees Rule of social networks: Everything we do tends to ripple through out network, having impact on our friends (one degree), our friends friends’ (two degrees) and our friends’ friends’ friends (three degrees).

They say that:
1. We shape our network.
2. Our network shapes us.
3. Our friends affect us.
4. Our friends friends affect us.
5. The network has a life of its own.

They prove their points with information maps of data showing how one social interaction impacts hundreds.

IRS Squeezes Small Business

http://online.wsj.com/article/SB10001424052702303657404576363280465293272.html?mod=djemSB_t

What do Florida Lawyers Earn?

The State of Florida collects data on salaries: http://www.labormarketinfo.com/library/oes.htm. This shows that there are 41,240 lawyers reporting income in Florida in 2011.

The site can be searched by MSA. As expected, attorney income varies by geography. An entry level attorney earns $40,760 in Gainesville, $48,880 in Tampa Bay and $58,540 in Miami. Some of the difference is due to variances in cost of living. You can compare cost of living by income by city at this site: http://jobs.aol.com/salaries.

Here are the key facts:
• Entry level attorneys earn $49,920 annually.
• The mean income is $115,100.
• Experienced attorneys earn $147,700.

The data base includes income for legal cretaries.

Here are the key facts:

• Entry level secretaries earn $28,350.
• The mean income is $40,788.
• Experienced secretaries earn $47,008.

The methodology for these calculations is available upon request.

Business Valuation Tools by Inc. Magazine

IRS Examines Gifts of Real Estate in Florida

Previously undisclosed effort examined by the Wall Street Journal

Many Florida Law Firms Are Internet Invisible

Many Have No Web Site, No Business Email

Some 98% of Florida law firms, with less than five employees, do not have a web site.  Another 60% of firms, with five to 10 employees, also do not have a web site.

Larger firms consistently have web sites but often their internet presence is flawed.  A spot check of firms with web sites shows that most do not show an individual’s email address on their web site. Commonly, these firms only allow a preformatted, generic email to an unknown person in the firm; there is no way to directly email any partner or associate by name.

Those results are shown in a 2011 business spotlight study by Harry Haigley, a business analyst and accredited business valuation professional.  The data came from national data bases on U.S. and Florida businesses.

“There are a number of internet lawyer listing services that show the address and phone number of all law firms.  But if you want to find out anything about smaller law firms or the partners, on the firm’s web site, you simply cannot do it,” said Haigley.

“Of course, practically all professionals use the internet; have email addresses and smart phones.
But the lack of web sites seems particular to small law firms.  By contrast, web site usage for small firm Florida architects is about 25% compared to 2% for small firm Florida lawyers.

“There are restrictions on law firm advertising in Florida and that can be a barrier,” he said.

“The idea that 98% of the small Florida law firms are internet invisible defies rational explanation or comment,” said Haigley

Small Florida law firms can produce net income to the owner of about 33% of gross revenues.  These
firms can sell to other lawyers for about 70% of total annual revenue, Haigley said.

ABOUT THE AUTHOR: Harry Haigley is an experienced business broker, mergers and acquisition
professional and an accredited business valuation analyst (National Association of Certified Valuators and Analysts).  He has performed more than 400 valuations of firms in most industries.  He holds an MBA from the University of Chicago.  His office is located in downtown Tierra Verde, FL. Telephone:  727 827-8000,email:  Harry@fmtservices.com.  He does not provide internet or web site consulting services.

Home Inspection Companies Worth Up to $250,000 Cash

Buyers of businesses have paid up to $250,000 for successful home inspection companies in Florida, according to a study by Harry Haigley, an accredited business appraiser.

“The typical home inspection company sold in Florida in recent years had sales ranging from $70,000 to $270,000 annually. The best of these companies sold for cash of $200,000 to $250,000. Net income to the owner often is about 65% of sales,” he said.

“The value of professional service firms, like home inspection companies, often is a multiple of the sales,” he added. “Accordingly, an increase in $1,000 in sales adds about $250 dollars to the selling price of the company.”

There are 11,900 real estate inspection businesses nationally and 10,900 in Florida. Some 90% of the companies have less than five employees. Only 248 companies nationally have more than 20 employees. Many have been in business more than 15 years.

“Advertising expenditures of the firms are very low. Most depend on referrals from other real estate industry professionals,” he said.
Haigley offered two quick action steps to increase sales and business value:

• Use your smart phone to improve business efficiency. A good application for this is http://allinspections.com/.
• Use LinkedIn to improve referrals. “In less than two weeks, I went from internet invisible to the third listing on the front page of Google searches,” said Haigley. To see how, Google the term “business valuation St. Petersburg.” This was accomplished with no web site, no search engine optimization and no cost.

ABOUT THE AUTHOR: Harry Haigley is an experienced business broker, mergers and acquisition professional and an accredited business valuation analyst (National Association of Certified Valuators and Analysts). He has performed more than 400 valuations of firms in all industries. He holds an MBA from the University of Chicago. He is located in St. Petersburg, FL. Telephone: 727 827-8000, email: Harry@fmtservices.com.

Why the Same Business is Valued at $1 million to $10 Million

Value World

The value of a small business can range from $1 million to $10 million depending on the “world” in which it is valued.  This Word document illustrates the differences.

Business Transition Council – Tampa

www.transitioncouncil.com

Mergers and Acquisitions Resources

www.certifiedacquisitions.com