Today I had lunch with a friend of mine who is 9 months into a start-up. Man is she stressed. Jumping around from one activity to another and not doing any of them particularly well.
So we had the old “start with the end in mind” or as I like to say (thanks to Seth Godin) “start the journey before you see the end” chat, taking her back to basics (not that she’d ever been introduced to the basics!).
Using the eMyth as the base, we discussed the 4 departments that make up a business and her role within each of those areas. As with any start-up, this business owners organisational chart looks like the one pictured. No wonder she’s stressed!
The sooner she can spend some of her hard-made money on support, the sooner she can do the stuff she’s really good at, which in her case is the first two ie Marketing and Sales.
Getting the base right, from the outset, definitely helps management of the stress levels…
The short answer is “yes”. But like anything else, it’s all about finding the right buyer!
Today, one such seller came into the office. He had completed the Sellability Score. He wanted to pursue a further conversation. He owns 60% of an established profitable business. He wants to get his equity out and doesn’t think the others partners can afford it. What to do?
We discussed a number of options, leaving him with some thinking to do and a few lifestyle decisions to make. At the very least, he will get us to do a valuation so that any potential buyer will know what they are buying into, from a financial point of view.
Whether we end up structuring the deal internally or externally, I’m confident he will utilise our services because he is confident we know what we’re doing, always the ideal place to start…
Get your Sellability Score…
If any of these tickle your fancy, please contact me by emailing email@example.com letting me know which one it is…
BS2 = Online Retailer
More offers received, more expected… just not quite hitting the mark.
The momentum continues to build. What will the crescendo bring?
BS3 Waiting on the Seller
This one moved quickly. A great start-up price for the new business owner. Contract stage now.
BS8 Waiting on Seller
Was listed with another but no luck to date
Looking to get it moving but waiting out agreement period
BS9 = Specialist Leadership and Talent Management Provider
Completed Sellability Score
Looking to a 2013-14 kick off
Getting all ducks in a row in the meantime.
BS10 = Specialist Offline Retailer
Completed Sellability Score.
1st meeting completed, next steps discussed.
Promising! Waiting on financials, slowly starting to come through.
BS11 = Hairdresser
BS13 Specialist Equipment Provider
1st meeting led to much discussion and interest.
As a result, a number of options being considered.
BS14 Leading Book Supplier
Up to Stage 2. Waiting for financials.
BS15 #1 in Google for This Offering
phone call information gathering March 19
The “Sellability Score
” reports continue to dribble out each and every week.
Calls to make as a result 🙂
Onwards and Upwards!
Today, I was talking to a business owner, who had recently completed the “Sellability Score“. When asked why the business was to be for sale, the answer brought a sad, sigh from the owner; joint owner actually.
To explain, the tragic fact of the matter is that the husband has been diagnosed with cancer, requiring so many new and scary decisions to be made. What to do with the business is one of them.
Regardless of their decisions from now on, the shock of the outcome has shaken them to the core. They thought they might hang on to the business as it provides the cashflow but then, do they still need it? It’s also a business that has been around for a long time and for all intents and purposes, is successful. But, but, do they don’t want to give it up as it’s been part of their life for so long?
The conversation came around to there being only two true things you can invest in a business, time and money (thank you Robert Kiyosaki). When push came to shove, they really don’t need the money but of course they DO now want to hang on to the time…
So the decision has been made and the business will go to market.
If you were put in the same situation (heaven forbid), as at today, what decisions would you make? Could you make? If you don’t like the answer, and you still have time on your side, take a good hard look at your business and what you want to do with it, starting today!
This time last year, the Australian Women Chamber of Commerce and Industry (AWCCI) conducted the first national survey of female business owners, featuring results from some 3000 women. I thought it opportune to revisit their findings as I suspect not too much has changed in 12 months…
- Women own almost 40% of small businesses in Australia
- there are more than 700,000 female-owned businesses
- Women’s superannuation funds and income are lower
- 24% of female business owners work 41-50 hours per week, 20% work up to 70 hours
- 76% work Saturdays, 64% work Sundays
- 17% have a turnover of $100,000-$250,000 per year
- 71% are running their first business
- 70% are providing a service
- 52% do not pay themselves a market wage
- 62% used social media in their business, mainly Facebook
- 57% work with their spouse
- 79% do not sell online
- 47% work from home
- 42% start with less than $5000
and my guess is that a large percentage of them are not building an asset to sell, nor are they considering an exit strategy.
Think I might address each one of these over the coming weeks as it seems we have a lot of work to do…