“monopoly control is obvious i.e. what’s the barrier to entry, how is it actually unique”

 

sellabilityscore.com.au

how saleable is your business? find out with the SellabilityScore.com.au

Further to my post of April 28, lets explore the next of the elements in gaining a more favourable “Sellability Score” i.e. a more saleable asset. That is, “monopoly control is obvious i.e. what’s the barrier to entry, how is it actually unique”.

The notion of USP (unique selling proposition) is not just a marketing, branding ploy.
It actually forms a strategic part of the business model and it’s execution is paramount.

To paraphrase Warren Buffet, each business needs a moat around it. What he means by this goes a long way to addressing the answer to the question about what is the barrier to entry safeguarding your business from the market your dealing in.

What is your moat?
Customer Service is not it.

Every business I know of, who have not done the hard in addressing the moat question, will say that their superior service is what makes their business different. If that was the case, then all the business would come to your business. Not even Apple can claim the service angle (albeit they do it better than most).

Pricing is not a barrier either. Once the fight is on around price, then as Seth Godin says, it’s a race to the bottom.

So, if they’re the two points of difference you choose to try and convince your market, good luck.
Your business will be deemed to be another same-same but different!

Find your moat and lock it in. It’s your only saviour….

before you quit your job – ask yourself these 5 things…

before you quit your job – ask yourself these 5 things…

ThinkingLady

“It’s no mystery that most people are unsatisfied in their jobs. Statistics show that more than 70% of the U.S. workforce is unhappy with their current jobs.

Why is this happening in this great and free country? Don’t we ALL have more resources and opportunity than any other place on Earth? If so, why are we all sitting around complaining about our miserable jobs? There are many answers to this question of course, but I think that the most pressing ones are:

We have allowed ourselves to become dependent on easy money.

If you want to quit your job, and Lord knows most of us do, then you really need to ask yourself these questions. The key here is being honest with yourself. Failing to answer these questions completely honestly may result in putting yourself in a worse position.

Before You Quit Your Job – Ask Yourself These 5 Things – Dumb Little Man”

I rephrase the point slightly and say “we have allowed ourselves to become dependent on ‘easier’ money”.
There’s no such thing as a free lunch.
There is no ‘easy’ fix to this one.
On top of these, quitting your job and looking to buy/start a business takes these questions to a whole other level…

1. Why do I want to quit?

2. What do I want to do instead?

3. Can I afford to quit?

4. Will I be happy working for someone else?

5. Why don’t I like my job.

Let’s go through each one:

1. If answers like “be my own boss” feature, then starting or buying a business do not necessarily address this one. Why?

Because, regardless of whether running your own business or not, you are always answerable to someone. Whether it be your customers, suppliers, employees or bank, even your family. You can never sail through and expect to not be called to task by someone.

2. If business seriously features as an option, great. Know exactly what you’re prepared to stick your neck out for.

You can’t plan every little thing and you won’t ever feel as secure as you may wish to, but making the decision to be a business owner rests entirely on your shoulders because if you don’t believe you can give it a red hot crack, backing yourself in the process … then save the time, effort, energy, money and grief you’re about to invest and park it somewhere else. Backing yourself is the biggest thing for you to do to be a business owner.

3. Start ups notoriously take 2 years to turn a profit. If you don’t have a nest egg sitting neatly under your mattress, then don’t do it. You can of course go completely the other way and think well I have to make it work otherwise I don’t eat! Whichever works for you is fine. Just understand that the regular pay packet will become a thing of the past for a while. If you’re not OK with this, then maybe it’s time to reconsider.

4. Why do that at all? be your own boss and buy a business!

At least that way, you walk straight into revenue. So the elusive pay is not too far away.

Of course deciding what to buy to the hardest part. Waiting to find the perfect business will have you waiting a very long time. There is no such thing. That said find one you almost comfortable with, and work it hard, get it into shape and all should work out in the end. Well that’s the plan at least anyway.

5. If you’ve got issues you have not addressed within a paid environment, they are only going to manifest larger when the stress of starting/buying a business kicks in. Deal with whatever has not worked for you in the past by exploring to the ways to make it work and then take these strategies into the business with you. Otherwise, the common denominator, the walking disaster that is you is about to take over the business they has the potential to implode because you’re not prepped enough to handle what is about to be thrown at you.

Good luck!

TEMpting; How Business Buyers and Sellers Have Been Tempted This Week…

How Saleable is Your Business in 2014? How Saleable do you want Your Business 2014? What are you waiting for? GET YOUR SCORE…

This week, the transfer of the website and all its bits is almost done!

That includes:

  • transfer dotcom domain name
  • transfer dotcom.au domain name (different register to the dotcom)
  • set up Google Adsense
  • set up Google Adwords
  • transfer site files
  • etc etc

Once finalised, the “renovation” begins, to get this little baby humming along nicely. Really looking forward to seeing what transpires with all the numerous slight but important changes to make.

Need to double the numbers first off, to make it worth continuing the process. Anyway, time will tell.

GOT A WEBSITE FOR SALE?

If you want to sell a website or you’re looking to buy a website (excellent bolt-on possibilities), please email me at dhall@businessbrokers.com.au


If any of the following tickle your fancy, please email me at dhall@businessbrokers.com.au, letting me know which one it is…

FOR SALE…

BS30 Online Venue Business
Completed Sellability Score
Still waiting on the revised figures. Since got confirmation that they don’t look as healthy as first intimated. Deciding whether to go back to the 4 interested parties, maybe there will be some interest regardless.

BS49 Home Help…
It appears that the owner has managed to secure a rather large contract, which had been discussed as part of proceedings but nothing concrete had materialised, until Monday. Next week should show it well and truly set, meaning the discussions of a week ago have just upgraded considerably. The next meeting will more negotiation required.

BS53 Balloons! and all that goes with them…
So of the two that received the CA and IM, it only appears to be interested. Really hope this one is courageous enough to give it a go, as they at least understand the industry and the potential this one offers. Lets hope they come back to me, in the positive.

BS59 Niche Service Provider in Building Trade
via Sellability Score.
It’s all systems go! Awaiting on sign-off of IM and advertisement. Once done, we go to market. This is a cracker for a white-collar wanting to get out of the office or a tradie wanting to get off the tools.

BS60 Advertising and Events agency
(via Sellability Score)
IM finalised. Advertisement on websites. Called a few people I know about this one too, waiting to have a good old chat.

BS72 Niche Bookseller and Training Provider
Waiting on finalisation of the IM. Looking to verify a few numbers first.

Training provider
Assisting colleague by introducing the perfect buyer for his selling client. My contact is taking this one slowly as another deal needs to come through first. May not suit sellers timing but it is what it is…


It’s all happening…. Others I’ve talked too.. are you interested in any one of them?

  • a particular event
  • sales and services
  • magazine
  • specialty bed linen
  • facilities management
  • speciality giftware
  • technology reseller
  • specialty children’s products x 2
  • overseas medical procedures
  • online products
  • electronics retailer

If yes, let me know…


 

Exploring the Sale Option?

GET YOUR SCORE…

Onwards and Upwards!

“growing companies i.e. showing a growth rate of 30% or more…”

 

sellabilityscore.com.au

how saleable is your business? find out with the SellabilityScore.com.au

Further to my post of April 28, lets explore the next of the elements in gaining a more favourable “Sellability Score” i.e. a more saleable asset. That is, “growing companies i.e. showing a growth rate of 30% or more”.

Growth rate of 30%?
Can your business achieve it? Has your business ever achieved? Is it possible to achieve?

If you want to build a saleable asset, then this appears to be the sweet growth number potential buyers are looking for.
And make no mistake, it’s a big ask, especially year on year.

How’s your business doing?

In all my time of business brokering, I’ve seen one business sold that was doing so well. They were demonstrating 40% growth. Hence it sold at 6 times as opposed to the usual multiple at present, which is 1-2 times.

The use of multiples provides the recognition of the value, aside from the profit. How it is calculated is by multiplying the profit by the number derived as being fair and equitable, taking into account all the elements discussed to date.

Hence is why the multiples make a big difference, especially if the profit is high, which invariably is it with a growth rate like >30%.

Besides which, growth is good for business anyway. Get growth happening at >30% and affording a manager to run the business for you is much easier to afford…

 

“under management, not run by owner…”

 

sellabilityscore.com.au

how saleable is your business? find out with the SellabilityScore.com.au

Further to my post of April 28, lets explore the next of the elements in gaining a more favourable “Sellability Score” i.e. a more saleable asset. That is, “under management, not run by owner”.

Pretty self-explanatory, right?
Yes, it is probably true enough but most businesses do not grow to a size that enables bringing in a manager to drive the business on behalf of the owner. And if the business revolves around the owner and the owner wants out – then what is the buyer buying exactly?

I cannot emphasise enough how important it is to be really clear about what business you’re building. If you have no intention of having your business feature in your “asset portfolio”, know that it will cap at your skill set and energy levels. It will be as good as it gets!

Only Monday morning I was having this conversation with Liz O’Dwyer, from Business Success Radio. What a business owner decides to build is up to them, but knowing what is being built is paramount. So what do I mean by that?

To use the real estate analogy, think about the purchase of a personal/holiday home vs. an investment property.
Ways of treating the research, the buying and the ongoing maintenance are quite different for each of them. So is the mindset.  Now, think of a business. The same principle applies but there is no way of differentiating by title which one is being built.

And there in lies the problem.

If you want the business to revolve around you i.e. build it so that you “live” in it, so be it. But know that is what you’re building and that will not be an asset to sell. Yes, you may be able to sell parts of the business, like a client list for example, but not as a whole, which is more valuable.

If instead you want to build a business that is NOT one you want to “live” in, i.e. build it as a saleable asset, a different business model is required and must be executed,without you being in the middle of it.

Not sure? Think of it this way…
Once you start engaging others as part of the fulfilment of your business offering i.e. servicing multiple customers at once and hiring suppliers for example, then you are going down the “investment property” path and can seriously consider building something a whole lot bigger than first thought. You have the platform of an asset from which to leverage.

Ultimately though, it is your decision…

Pin It on Pinterest