by theEmother | Oct 26, 2015 | buy | sell websites, BUY a Business, Buy a Mother of a Business, EXIT execution, exit strategy, how to sell a business, Sell Your Business, SELL your Mother of a Business, Sellability Score, so you think you're in business, start with the end in mind
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:
- Profitable?
- Renovate-able?
- Automate-able?
- Scalable?
- 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.
by theEmother | Sep 25, 2015 | build a Mother of a Business, buy | sell websites, BUY a Business, Buy a Mother of a Business, so you think you're in business, start with the end in mind, the business model
As a contributing article in the Australian Businesswomen’s Network latest newsletter, this article discusses the best time to Buy a Business:
Quitting life as you know it and looking to buy a business makes the answers to these questions crucial:
What do I want to do?
Why do I want to do it?
Can I afford to do it?
Will I be happy doing it?
Why do I want to take on someone else’s “stuff”?
To explore the answers to these in the Business Buying context, read the full article…
by theEmother | Sep 1, 2015 | business ideas & thinking, buy | sell websites, EXIT execution, exit strategy, Finish Unfinished Business, how to sell a business, Sell Your Business, SELL your Mother of a Business, so you think you're in business, start with the end in mind
Recently, this article was published on the Australia Small Business Blog, with my contribution focused predominately on the benefits of using a Business Broker, like my good self:
“If you are going to be dealing with a business broker, make sure they are licensed with the relevant State body. The Australian Institute of Business Brokers (of which I’m a member!) has links to the various State licensing authorities. When exiting your business, you should seek some professional advice – however even an accountant or solicitor have limitations on the scope of the guidance they can offer around the valuation and sale of a business.
A qualified business broker can help in many ways. They will prepare you for the due-diligence that a buyer conducts. They know that a buyer or investor besides looking at the current profitability of the business, evaluates the extent to which it can run independently of the seller, as well as examining the scale-ability of the business. In other words, it’s capacity to actually handle growth and maintain profitability with any increase in the volume of sales generated”
Continue reading here: http://www.australia-small-business.com/2015/07/exiting-your-small-business.html
by theEmother | Jun 5, 2015 | build a Mother of a Business, buy | sell websites, BUY a Business, Buy a Mother of a Business, entrepreneurial mothers, so you think you're in business, start with the end in mind, TEMpting, the business model
This online boutique offers children’s products made by manufacturers committed to earth-friendly practices. Clothing made from organic materials, skincare that is chemical and preservative free, toys made from natural, sustainable sources, bottles and dishware that do not contain hormone-disrupting toxins such as BPA.
Not only is the focus on the products sold, but also the stories behind them. Special care is taken to source items from inspiring makers in Australia and abroad who are designing, innovating and creating fabulous green products, all while adhering to fair trade principles and using sustainable packaging options.
For those making an effort to live a healthier, more sustainable lifestyle, the blog is a valuable resource. It provides news on interesting new products and the latest information on green issues from trusted sources around the world. The newsletter also shares eco-fabulous finds for kids as well as exclusive sales news and giveaways.
The owner has always tried to live a healthy lifestyle and be a conscious consumer. Then when becoming a parent, more attention was paid to the choices made about everything, including eating organic foods, trying to eliminate exposure to toxins and also cut back on the contribution to the local landfill, from food to toys, clothing and bath products. Every decision was given greater consideration, hence the product range for this particular offering in the marketplace.
ASKING PRICE: MAKE AN OFFER
Expected Price Range: $60,000 to $90,000 (plus stock at cost)
by theEmother | Apr 17, 2015 | build a Mother of a Business, buy | sell websites, BUY a Business, Buy a Mother of a Business, entrepreneurial mothers, exit strategy, start with the end in mind, TEMpting, the business model
This online boutique store is full of quality products and beautiful gifts for all of the babies and toddlers. Newborn gifts, the perfect baby shower gifts, 1st birthday or just because…what ever the occasion, here you will find the perfect products in store.
The business sources, selects, packages and distributes a beautiful range of quality products that have been tried and tested. The offer is promoted along the lines of having a personal shopper, doing all the legwork for the purchaser.
Together with the unique range of products on display, so is excellent customer service and the ease of shopping 24/7, from anywhere! Once a perfect gift is chosen, free gift-wrapping is offered as part of the service.
Given the level of interest to date and with time dedicated to it, the business has grown well but still allows for a lot of potential. In particular, it will add value as a bolt-on to an existing business in a similar niche or as a hobby/second income business for the sophisticated baby gift enthusiast.
ASKING PRICE: $100,000 (plus stock at cost)
Interested? email sell@theentrepreneurialmother.com.au
by theEmother | Mar 27, 2015 | build a Mother of a Business, buy | sell websites, BUY a Business, Buy a Mother of a Business, PrimeTimers, Seniorpreneurship, TEMpting, the business model
The business has been running successfully for 4 years via an online store and through stockists in and around Melbourne. It has also sold via pop-up shops/markets, ran workshops, exhibitions and leased products out for events/open houses, etc.
The business has a good following on social media and has gotten good press over the years and has been featured in The Age, SMH, Shop Till You Drop, House and Garden, Green Magazine and Hooray (previously Hitched) Magazine.
The owners are selling because work circumstances have changed and the business isn’t getting the attention it deserves. Given previous interest, the owners believe the business has a lot of potential, as time is dedicated to it again.
It would be a most credible bolt-on to an existing business in floristry or as a hobby/2nd income for the gardening enthusiast.
Interested? Email dhall@businessbrokers.com.au to start the process by receiving a Confidentiality Agreement to sign and return.
