Riddle me this; Why do Business Buyers NOT want Trade-based ones?

Riddle me this; Why do Business Buyers NOT want Trade-based ones?

Tools of the Trade

We’re seeing a number of trade based businesses at present that are not getting the selling pricing they probably deserve and that prospective buyers are turning their noses up at… and I don’t get it.

They are good businesses, making good money.
YES, they require work (albeit manual) but then doesn’t every good business.

If you’re at all interested in:

  • maintenance
  • concrete
  • polishing
  • or want to be advised of those that come on the market

Please drop me a line at denise@xcllusive.com.au and I can fill you in with further details as they come to hand.

 

#BuyThis Long-Established Business; Import/Wholesale Very Pretty Things, ready to ramp up Online…

Business For Sale - import/wholesale 85years old

The current entrepreneurial owner took this 85 year old Madame and reshaped her into being 21st century ready. She, the business, now is in need of the next new talent that can utilise the robust base and morph it into the online sensation it is longing to be…

• Niche Business with revenue in excess of $600,000
Adjusted profit to owner in excess of $100,000 FY2015
• Supplying Australia’s leading fashion houses, retailers and manufacturers
• Specialising in the craft, gift and packaging market
• Arrangements in place with suppliers, including exclusive with key supplier in Europe (requiring bi-annual overseas trip)
• Iconic brand with 85 plus years of history

An ideal opportunity for a person(s) seeking a business with a creative flair. This business imports its products from Europe and Asia and is highly regarded within its market for providing beautiful, unique and quality product together with reliable and professional service.

The business owner’s main involvement is:
• General Management
• Business and Product Development/Marketing/Sales
• Travel bi-annually to meet with key suppliers in Europe and Asia

What does the business do?
• Importing and wholesaling of its niche range of products
• A growing percentage of its business is based on orders that are customised for specific clients

Substantial investment, positioned for the Future:
• “Digital ready” with a streamlined website to handle both retail and wholesale clients
• Extensive and diverse database of clients across a broad range of industries
• Automated and systemised operational procedures requiring low staffing levels
• Cloud-based business system (Netsuite), with integrated accounting/ERP, inventory management, CRM and webstore for multi-channel marketing
• Electronic Data Interchange (EDI) system used to trade with national chains
• Over 80% of clients prepay, allowing minimal cash gap
• A number of growth areas have been identified and preliminary research commenced

The business is ready to be relocated to a property of your choice, and can also be integrated into an existing business. With key employees and systems in place, the business offers a number of flexible options and opportunities for a new owner.

Asking Price: $180,000 plus SAV http://www.businessbrokers.com.au/view_listing.php?OID=9797350

Interested? email me at dhall@businessbrokers.com.au

A more traditional way to Start an Online Business…

A more traditional way to Start an Online Business…

SethsHead

Seth Godin (acclaimed author and teacher) says to start your first business this way:

  1. Begin with the smallest possible project in which someone will pay you money to solve a problem they know they have.
  2. Charge less than it’s worth and more than it costs you.
  3. Repeat

The beauty about doing so with an Online Business is that not only is it simple to do; it can be done far more cheaply than to go a more traditional route.

Don’t worry so much about the ‘online’ part. It is only a tool, a mechanism to reach people who need to know about you’re your business is doing. Instead, figure out how to create value. The online part will take care of itself.

Don’t quit your day job (whatever that means to you) or use all your savings. Start evenings and weekends. If you don’t want to have to start from scratch, buy a small online business to practice on. The best way to move from Learner to Practitioner is to DO stuff. Figure it out with small failures.

Doing so also helps you build a public reputation (which can remain online only). Build a good one, and be sure that you deserve it, and that it will hold up to scrutiny.

Obsessively specialize. No niche is too small if it’s yours.

Connect the disconnected.

Make money offline. If you can figure out how to create value face to face, it’s a lot easier to figure out how to do the same digitally. The web isn’t magic, it’s merely efficient.

Become the best in the world at something that people value. Easier said than done, worth more than you might think.

Hang out with people who aren’t looking for shortcuts. Learn from them. Find and pay for advice that has not only credentials but also a robust track record.

Fail. Fail often and fail cheaply. This is the very best gift the web has given to people who want to bootstrap their way into a new business.

Make money in the small and then relentlessly scale.

Don’t chase yesterday’s online fad.

Think big, act with intention and don’t get bogged down in personalities. If it’s not on your agenda, why are you wasting time on it?

Learn. Ceaselessly. Learn to code, to write persuasively, to understand new technologies, to bring out the best in a team (especially if offshore), to find underused resources and to spot patterns.

This is not a zero sum game. The more you add to your community, the bigger your piece gets.

Here’s a novel first seven steps to get you going:

  1. Pick your Topic
    Create a strategic map of all that is going on within that topic and start checking for gaps and patterns
  2. Keywords
    Concentrating on both the industry players and their likely customers, create a list of keywords that is used to find them and are relevant to your topic
  3. Search
    Using these keywords, start searching and note what you find. Again what are the questions being asked that does not appear to have answers?
  4. Top 50 pages
    Record what the top 50 pages are that come up for the questions. Explore them for the answers being sought. What’s missing?
  5. Extract contact details
    Feed into your database/spreadsheet
  6. Create an “offer”, with the view to discussing what’s missing with the top 50, highlighting how you are the one to assist in plugging this gap (and to project manager it for payment)
  7. Rinse and repeat

Following steps like these will enable you to potentially play in a space you may be more familiar in i.e. the more traditional business, and together, craft and execute an online business model that you has you part of the action.

And it certainly opens the door to a useful conversation about whether your personal goal is useful, your strategy is appropriate and your tactic is coherent and likely to cause the change sought.

In your offer, address:

What’s it for?
When it works, will we be able to tell?
What’s it supposed to do?

Who is it for?
What specific group is this designed to resonate with?

What does this remind you of?
Who has tried this before?
Is it as well done?

What’s the call to action?
Is there a moment when you are clearly asking people to do something?

Show this to ten strangers. Don’t say anything. What do they ask you?
Now, ask them what the material is asking them to do.

What is the urgency?
Why now?

Your job is not to answer every question; your job is not to close the sale. The purpose of this work is to amplify interest, generate interaction and spread your idea to the people who need to hear it, at the same time that you build trust.

You will rarely achieve this with one fell swoop, so be prepared to drip your way through countless swoops until you’ve earned the privilege of engaging with the audience you seek and them seeing the value in what you’re proposing.

As simple as Seth’s advice is, it is also extremely powerful. Follow it, together with the steps outlined and you will be well on your way.

To talk to me about this and any other business question you have on your mind, please contact me via email: dhall@businessbrokers.com.au.

CASE STUDY: From $6 to $5668 per qtr in GST in just 3 years…

CASE STUDY: From $6 to $5668 per qtr in GST in just 3 years…

Who would think it is pleasing to use Tax as a Growth Indicator?
This story from one of my charges (Julie Demczuk of www.exclusivepmg.com.au) just this week, got to love a share such as this:

I’m sitting in my office on my own thinking about when I first started the business.

 I remember saying to my bookkeeper I can’t wait until I start paying GST.  I was so excited when my first GST bill was $6.

 After three  years my GST bill for the last quarter is $5,668.
What an amazing difference.

What an amazing difference indeed! Whilst I haven’t contributed directly to her growth numbers, she is one the amazing number of Women Business Owners who are building their business as an asset, ready to be saleable when the time comes  (which may be right round the corner!)
So very proud of this entrepreneurial mother.

Just think how well off the new owner of a business like this will be. Not only is the thing well-established, if $5000+ of GST is being paid quarterly, then the revenue has to reflect same. Much more palatable when compared to waiting for revenue as a start-up… Interested in knowing more? Please drop me a line at info@theentrepreneurialmother.com.au

Some would say “why?”, others, “why not?” 

Some are born to start, build and hold for as long as it takes.
Some are born to start, build and pass the baton on.

Which one are you?

ARTICLE: Why consider using a Business Broker (just like me) to Sell your Business?

ARTICLE: Why consider using a Business Broker (just like me) to Sell your Business?

AIBB Sales Index_June 2014

Trying to sell your business on your own, having not done it before, can be fraught with danger!
As the old adage goes, “You don’t know what you don’t know!“. There’s always the chance that you luck your way through, and all hail to you if you manage to do so.

But what I know for sure is, as an experienced Business Broker, is that most do not sell, or sell well.
You (as the owner) eventually use a Broker after trying unsuccessfully.
In many cases, all that’s unfortunately been achieved is that it takes a whole lot longer to sell and by potentially taken your eye off the business ball, the numbers may then reflect the distraction (which is not good for sale purposes)…

So why consider using a Business Broker from the outset?

  • We are licensed to assist in the buying and selling of businesses, at the State level
  • We have insights, gleaned over many years, into specific industries or type of businesses
  • We maintain confidentiality of buyer/seller
  • We act as a buffer between the buyer and the seller
  • We have a working knowledge of accounting, financing, legal, marketing etc to avoid unnecessary surprises in a transaction
  • We play the role of the “conductor of the orchestra” and even the “project manager”.

If trying yourself is what you want to do first, then watch out for these common mistakes to avoid when exiting. Not:

  • Focusing on the bigger picture
  • Doing your own research of your own market
  • Thinking through the “risks” – almost impossible to be “risk free”
  • Entertaining a willingness to accept risks •Example: Special conditions that can “kill the deal”
  • Regarding the probability of things going wrong
  • Reviewing the seriousness of quantifiable damage
  • Budgeting for upfront costs
  • Adapting “generic due diligence checklist/template” to your needs or size of the transaction •Example: Using a checklist suitable for multi-million dollar enterprise on small businesses
  • Deeming it worth the extra expense to seek input from accountants and solicitors with your particular industry expertise, while maintaining an existing relationship with your accountant or solicitor.
  • Being sure of who or what professional to seek appropriate advise from
  • Understanding the limitations of what the professional advisors can provide
  • Giving appropriate instruction to the professionals engaged

The following are 5 tips to help enhance the sale price of your business… by answering these 5 questions, you are seeing your business popping on Buyers Goggles.
Is it:

  1. Profitable?
  2. Renovate-able?
  3. Automate-able?
  4. Scalable?
  5. Saleable? (i.e. not revolving around you)

If the answer is no to any of these, then you/we have got work to do. Contact me.

 

BID; support Charity; win 30mins of talk-time with me…

BID; support Charity; win 30mins of talk-time with me…

2015_MOM FB Badge 400x400pxl-2

Just think, 30 minutes dedicated to asking all those niggling questions that you’ve had sitting in the back of your mind for some time but just not got around to asking… NOW IS YOUR CHANCE!

I am proud to be involved with Mummy Mentoring Festival – raising funds for Alannah & Madeleine Foundation.

I have donated 3 sessions to help wonderful women, working from home, all across Australia.

 Check out this great charity event and how you can win a 30min phone session with me or any one of 37 mentors from all fields of expertise/business.

BIDDING STARTS TOMORROW 26 October… go forth and win!

http://bit.ly/1Yxa8OY

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