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10 Things You Should Avoid that Could Harm your Computer |
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Everyone has their moments of making a mistake or clicking the wrong thing some mistakes are bigger than others when it comes to your computer. The following are 10 of the most common mistakes users make and what they can do to your system. Look over the list and make sure you aren't making any of them or they could have a higher cost than you think.
- Plug into the wall without surge protection
This can actually destroy your computer. A surge protector is there to protect your computer in an electrical storm or whenever your power goes out unexpected. If you leave your computer without this protection the power surge can actually "fry" your hard drive and completely destroy your computer system.
- Surf the Internet without a firewall
This mistake opens your computer up to all sorts of issues, the biggest of which are hackers and viruses. Both have their own ways of destroying your computer. Any firewall is a great start to have, but you must make sure that it is configured properly for your system and turned on otherwise it will probably not help you nearly as much as it could.
- Neglect to run or update antivirus and anti-spyware programs
As much as we all hate running out antivirus and our anti-spyware sweeps because of the system interruptions that it causes it is worse to go without it. We all have a threat of viruses and spyware not only from the Internet, but also from hackers and from other network users. Keeping your anti-spyware and anti-virus up to date is crucial to your systems protection and health. Most of the updates are critical to detecting new forms of spyware and new viruses to further protect your system from the latest threats.
- Install and uninstall lots of programs, especially betas
This can cause your system to run slower over time as even uninstalling programs does not always remove the entire program from you computer. It is better to just stick to the programs that you need and legitimate copies of them and not to do a lot of beta versions and trials.
- Keep disks full and fragmented
In order to keep your computer from running too slow you should have a regularly scheduled maintenance of your computer (at least once a quarter) where you run both Window's Disk Cleanup and Window's Disk Defragmentation programs on your computer.
- Open all attachments
Everyone wants to know what they got in their email, but some attachments are very dangerous and should never be opened. Not all of those files are obvious as to how dangerous they may be either. Because of this you should only open attachments from people that you trust and always run a virus scan on them first. .Exe are the most common of the dangerous file types but a virus can also be imbedded in an Excel or Word document that has a macro in it to run when opened. Read More
- Click on everything
This can get you in trouble as much as opening every attachment you receive. Some links will take you to web sites that have embedded ActiveX controls that can do very malicious things to your computer. They can also take you to inappropriate sites that can get you in trouble with not just your office but also the law. Always make sure you know where you are going and if you see a hyperlink hover over it without clicking to see where is will really take you.
- Share and share alike
If you are on a network sharing can open your computer up to many different threats. Windows automatically has hidden shares for the root of each drive. Many hackers can use these to their advantage to attack your computer and in turn your network. One of the ways to prevent this is by turning off your printer and file sharing. You can find the instructions at http://www.pcmag.com/article2/0,1895,1277222,00.asp.
- Pick the wrong passwords
Strong passwords are a must! As stated in last months article about passwords and easy password can be broken very fast by any hacker. Always make sure that your passwords are at least 8 characters long with a a mix be alpha, numeric, and symbols as well as with a mix between capital letters and lowercase. The more complicated the password the less likely a hacker will break it and attack your system. Read More
- Ignore the need for a backup and recovery plan
Always backup your computer and its contents to a secure location. You should use the Windows backup program to backup up your computer regularly. You can actually schedule the program to run the backup automatically at regular intervals. Backing up your data is one of the most valuable things you can do for your system as your original documents may not be able to be recreated. Also you should always create a mirror image of your backup on a disk so that you can easily restore your system.
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Does it “Pay” to Sell Your Company? |
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The decision to sell or retain a business is a question pondered by many business owners. Selling a business is a momentous decision and involves critical analysis and contemplation. Although there are a myriad of factors that influence this decision, most of the pertinent issues fall into two primary categories: Financial and Lifestyle Considerations.
Financial Considerations
Although the goal in any business sale is to maximize value, most informed professionals agree that selling a privately held, mid-market business is not akin to winning the lottery. In most instances you will receive more money by continuing to own a profitable company forever than selling it today for a single lump sum. Business owners are sometimes initially dismayed when presented with an objective, professional valuation of their companies. Some exclaim, “I wouldn’t sell for that! I could earn that much in the next four years by continuing to own my business.” This is a powerful statement, however this reactive conclusion is typically reached after a rushed analysis that produces an inaccurate result.
An accurate financial analysis must begin with an objective comparison of the net after tax cash flows that would likely be available from your continuing to own the business, compared with the expected net after tax proceeds if you were to sell the business. It is key to consider the tax ramifications of each option since the income remaining after taxes is most relevant.
Lifestyle Considerations
Selling a business is a big decision – and typically one that entails a reason beyond just money. The piece of mind of not bearing all of the risks by yourself, a lifestyle change, estate planning matters or net worth diversification can be significant motivators. It tends to be more of a lifestyle decision with a financial component than visa versa. Common factors include retirement, burn out, health issues, family matters, capital limitations, risk exposure or a blending of several issues.
Case Study
You are the owner of Widget Manufacturing, Inc., a Company with $15 million in sales and $2 million in recast EBITDA (Earnings before interest, taxes, depreciation and amortization). You are 62 years old with no children in the business and no succession plan in place. The business requires about 55 hours of your time per week, and you have personally guaranteed both the corporate lease and credit line. The Company has experienced steady annual growth that should continue into the foreseeable future. Business is good.
You receive an unsolicited $9 million offer from a qualified acquirer from within your industry. Your immediate reaction is one of disappointment stating: “Why would I accept that when I could make more by running the Company for another 4 years”. But would you really?
The $9 million purchase price would be taxed at approximately 26% capital gains rate (including Federal and State) that would apply to the amount remaining after subtracting your cost basis in the business. Assuming your basis was $4 million and the balance was taxed at the capital gains rate ($5 million taxed at 26%), your taxes on the transaction would be $1.3 million, leaving net after tax proceeds from the sale of $7.7 million.
Conversely, if you retained the Company, you are paying ordinary income tax rates commonly exceeding 40%. The after tax earnings would be approximately $1.2 million and it is likely that a significant portion of the profits will not be available for distribution since it will have to be reinvested back into the business. This simplified analysis suggests that it would take at least 7 years of continued working involvement to generate the net sale proceeds of $7.7 million. This is considerably longer than the original 4-year assumption.
If you retain ownership your long-term profit may eventually exceed what you would receive in a sale, but as the Company grows so do the working capital requirements. As accounts receivable and inventory balances swell, the drain on cash flow can be substantial. Moreover, capital expenditures to replace aging equipment as well as the new high-speed widget fabricators that will be needed next year in order to keep pace with the competition will cost “a bundle”. It becomes apparent that a substantial portion of your earnings will be needed to fund current and projected operations and cannot actually be taken out of the Company. The profits that are generated, whether or not they are available for distribution, will be taxed at ordinary income rates, which are significantly higher than capital gains rates that would apply to the business sale proceeds.
In evaluating the $9 million offer, more than simple financial analysis is required to determine if it makes sense. If we assume that the net proceeds equate to working an additional 7 years, you will work another 20,000 hours until the age of 70 to net an amount comparable to that of a sale. You will also continue to assume all of the risks and responsibilities of ownership.
Summary
The sell option puts a safe and secure $7.7 million in your pocket after taxes. The “keep” option that initially seemed significantly more lucrative actually boils down to having to work about 7 more years to potentially generate a like amount. You might be saying to yourself: “even though it may take 7 years to make what I would of if I had sold, I still continue to own the business if I don’t sell it”. True and along with that is the full load of intrinsic risks that go along with ownership, combined with your continuing to be consumed with your involvement in the day-to-day operations.
There is a fundamental cost of ownership that entrepreneurs know all too well. Legal exposure, personal guarantees, responsibility for employees and having the bulk of net worth tied up in one place can take a toll on any business owner. If earnings decline for reasons outside of your control or if adverse industry consolidations occur, it could have a major negative impact on the value and marketability of your firm.
Make sure your reasons for exploring the sale of the Company are sound. If the non-monetary motivations don’t stir your soul, now possibly isn’t the right time to divest. If you have all of the capital and strategic resources you need to grow, love the feeling of full ownership, don’t mind the inherent risks and your business isn’t “all consuming”, than perhaps selling is not the prudent decision.
When you are ready to sell, make sure your Company is as well. Too many business owners wait until growth slows and opportunities fade. The healthier the Company and the brighter the growth prospects, the stronger your negotiating position will be. Make sure you get the optimal value for your Company. Seek good counsel, including legal, tax and an experienced intermediary that can orchestrate the M&A process in a way that expands your alternatives, strengthens your position and maximizes your value.
This article was contributed by:
Stephen Goldberg
Managing Director
Sun Mergers & Acquisitions
(201) 727-1300
sg@sunmerger.com
