Jump Start 2012 in Tampa Bay, Florida

Business in Tampa Bay, Florida MSA

Since the Thanksgiving holidays the snowbirds have been arriving and arriving and arriving. This has been great for local business owners. In additions the 4 quarter economic growth has lifted the local business activity to levels not seen for 4 years. This is a great start to your strategy for selling a business. The first quarter of 2012 should continue to be strong for business due to the great weather in the Bay Area this season. Also many of the snowbird’s home area economies are a lot better than ours in the Tampa Bay Area (specifically home prices). Just remember that Easter is the second Sunday of April ending our snowbird season.

Strategy #1. Do all you can to bring in business. Increase your Revenue while increasing the net during our local season. “Early Bird gets the Worm”

Strategy #2. Do not add permanent costs to doing business. Be able to cuts cost at the end of the 1^st quarter quickly.

Strategy #3. Start Exit planning in February.

The second quarter drop could be bigger in Tampa Bay then nationally because of the strong snowbird season. It has been a five month ride that will leave as the overall economy slows down for the 2^nd and 3^rd quarters. During this time the Buying season for Tampa Bay area Businesses will start to increase as has existing housing sales, with an average day on the market of 125 days. Tampa will also start to see the “New Return” of the baby boomers into the bay area for retirement in a bigger wave due to their postponement of this move for the last 4 years.

Exit planning (Selling) for local business owners is now very critical vs. the alternative (closing the doors). Some planning thoughts;

1. Businesses for sale; days on the market average well over 180 days and as long as 2 years.
2. 2^nd and 3^rd quarter reduction of competitors. What will that do?
3. M1 cash on the side line is larger than ever in history for purchases.
4. Tampa Bay led into the decline and will start out in the 4^th quarter 2012.
5. Do Not “just hold on”

I think this would have been better at the beginning of the year but I followed the thought “Early Bird gets the Worm” and it is proving out. At the end of the month I will post economic data relative to the Tampa Bay Area market.