Circumstances will always alter therefore requiring different decisions to be made, at any given point in time.
Be that as it may… sometimes a business owner thinks they want to sell, goes down the path part of the way and then stops!
Can’t always explain why either.
In my view, that’s because they themselves are not ready yet. The business might be ready to be sold but the owner is not.
There is actually quite a transition process that needs to happen for a business owner to feel comfortable enough to let it go, especially if their business makes up part of their identity.
Business IS personal, most definitely for the small business owner.
Trying to bluff through and pretend it is not is to the potential detriment of not only the future of the business but also the future of the owner (not to mention the patient family…). To not work through the meaning to the business, and just as importantly, to the owner is where damage can be done, requiring so much more time, effort and energy needing to be spent…
Realising that it does take time to be ready to pass on the baton is part of the maturity of the business life-cycle. Practically, this process does make up a fair chunk of the exit strategy planning and equally as importantly, the exit execution.
Today, a first official offer was received for one of the businesses I currently have on the market. But… it was nowhere near where it needs to be, if the maker of the offer wants to be a serious contender.
When asked for the logic behind the offer, it became clear… whilst the offer-er had a really good handle on one aspect of the business, they didn’t understand another major component. They were trying to layer long-held views of one business model (no longer in existence with this particular business) over an evolved, already operational business model.
Think logistics, for example… there are so many ways of executing this part of the “backend” these days, without even having to hold a warehouse. This is a difficult concept to truly get one’s head around for those who’s background has always been that of being in control by having it onsite; up close and personal.
So, what does this mean in regard to the offer?
What it may actually be flagging instead is that the maker of the offer is just not the right one to buy.
“What would the owner care?” you may be thinking!
As long as the money is handed over, why would it matter?
Because Business is Personal, whether it’s acknowledged or not. A seller will not hand over their business (unless they really have no other choice) if they think it will fail fairly quickly.
Let’s face it, the reason they’re selling is so the business continues.
They could have just shut it down if this wasn’t the case…
Here’s the background…
A driven and caring entrepreneurial mother, who wanted to buy something specific in Australia for her child, couldn’t find what she was looking for. So she took it upon herself to rectify that problem.
To her credit, she morphed into a woman business owner (during her long-service leave break) and has turned this need into the most delightful shop, not only addressing what she needed to at the time but also making many, many more children happy, very happy since.
All hail to her…
I know, there’ll be a number of you thinking “I’ve done the same thing, what’s the big deal?” Are you now the leader in your field? Do you have the major retailers sending people to you? Are you now doing close to 7-figure turnover? Have you built your Mother of a Business into an Asset, ready to take to the market?
if not, there’s the difference…
If you want to find out more about any of these, please email me at email@example.com advising which one is of interest.
BS2 = Online Retailer
Much activity, with approx 10+ genuinely interested parties to date.
They’ve been meeting with the owners all week, with some now requesting seconds.
The momentum is building. What will the crescendo bring?
BS3 Waiting on the Seller
BS5 Waiting on the Seller
BS6 Waiting on the Seller
This one is moving quickly…
Great price point as “Start-Up” replacement.
One meeting of substance this week, with another booked for next week.
BS8 Waiting on Seller
BS9 = Specialist Leadership and Talent Management Provider
Looking to a 2013-14 kick off
Getting all ducks in a row in the meantime.
BS10 = Specialist Offline Retailer
Had first chat this week.
1st meeting booked with us next week.
BS11 = Hairdresser
Email received this afternoon, via bookkeeper.
First chat booked for next week.
The “Sellability Score” reports continue to dribble out each and every week.
Calls to make as a result.
Onwards and Upwards!
Today, my colleague and I spent time with a delightful business owner.
He’s an older chap who does not want to continue what he is doing.
Let me rephrase that, he does still actually love what he does but he’s got other things he also wants to do… and something has got to give.
As we moved through our very informative “exit strategy” discussion earlier today, so many opportunities presented themselves.
Bearing in mind the key consideration is that he wants out and/or he wants to be replaced and NOT take on any additional workload. So we had to refrain from getting too excited. Instead we had to come up with a way of honouring his needs and doing justice to what had been presented.
Solution = combine the two!
Create and develop one of the opportunities, in so doing, effectively replace the role he currently performs and added bonus – the profit goes directly to the bottomline as we go. All done in 6-12 months, thus enabling the owner to hop on his bike and ride out of there…
One very happy business owner left us later in the afternoon. Not only had he seen the light, he also had blinkers removed that he did not realise were there. I can only imagine the conversation tonight over the dinner table.