by theEmother | Dec 12, 2016 | EXIT execution, exit strategy, Finish Unfinished Business, how to sell a business, Sell Your Business, SELL your Mother of a Business, start with the end in mind
Start 2017 realistically by answering the one key question of, what is my business worth? Do you wonder about how you could leave or exit? This appraisal worth $1650 will provide you with a fair idea of the value and how to improve the saleability and value of the business to be more attractive to the purchaser, and guide you through the next steps…
Donated by Xcllusive Business Sales
www.xcllusive.com.au
by theEmother | Jul 29, 2016 | buy | sell websites, EXIT execution, how to sell a business, Sell Your Business, SELL your Mother of a Business
On the road to selling your business you will likely come face to face with someone claiming that they can sell your business to an overseas buyer for more than it is worth. Despite recent actions taken by the ACCC against unscrupulous vendors making these claims, the myth about overseas buyers continues to plague business sellers.
Advertising overseas will cost as much if not more than it does in Australia and knowing the truth about overseas buyers could save you a lot of wasted money.
So, if you’re thinking of selling your business through a business agency now or at any time down the road, take the time to arm yourself with the myths and facts about overseas buyers.
Read the full article here…
by theEmother | Jul 15, 2016 | business ideas & thinking, EXIT execution, how to sell a business, Sell Your Business, SELL your Mother of a Business
Let’s just get this out of the way: there is no one-size-fits-all formula for pricing your business. Anyone who tells you that there is, is probably about to ruin your chances of selling your business at its full value in your expected timeframes.
And here’s why: the price at which you take your business to the market is one of the main determining factors that can lead to a successful business sale. Your advertised price has a huge affect on everything from:
- Your target market,
- The perceived return on investment,
- The availability of finance,
- Your buyers’ level of trust in your business,
- The calibre of buyers you attract,
… and most importantly; it has serious implications when you get to the negotiating table.
All of those things put together can have a massive affect on your business sale so, quite simply, if your business price isn’t a strategically calculated figure, you’re shooting yourself in the foot. It can be the difference between selling and not selling.
Read the full article here…
by theEmother | Apr 22, 2016 | 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
Yesterday, yet again, I have met with a Business Owner who hired a Business Coach to assist them with their Exit Strategy only to find the business is no better off i.e. no closer to being exit-ready 12 months later and they’ve spent a whole lot of money to boot…
Here’s the thing from someone who deals in this space all day, every day – I have yet to meet a potential buyer who asks whether there’s a marketing and sales plan in place before they would consider buying the business, for example, it does not happen. Sure it may be in the mix of questions at some point but it only matters because of the way it is ‘sold’ to matter. The same goes for spending a whole heap on rolling on the marketing, trying to actually increase sales (especially without the infrastructure to back it up), bringing in a General Manager (without a well-thought out equity and game plan first), etc. And I’m yet to find an advisor who even asks if selling the business is the right thing to do for the Business Owner at this particular point in time, especially if the business features highly as their retirement funder.
An Exit Strategy, in the true sense of the phrase, to sell a business at a point in the future is about structuring the business ready for someone to want to buy it, but equally as importantly, it is about restructuring the business so that the owner can maximise their input with an impressive (and with expectations met) output.
In most cases, growth plans not executed well or quickly enough that make an instant difference are not useful.
The type of activities which make up a BEST Exit Strategy (and execution) are:
- Clean and profitable financials for a least TWO YEARS, looking as shiny as legitimately plausible
- Proving that the business is making money is important, but even more is that it will continue to do so, demonstrated by how well it funds itself
- Establish recurring revenue models and lock them in
- HR agreements (and implications) are well documented and understood
- Signed contracts are in place and ideally have as much time on them to run as possible
- Evidence of 21st Century considerations in both how the business fits into the future, including processes and technology
- Where feasible, the business owner is NOT the centre of attention or attraction
- If not, what can distinguish the business as a hub as touting that “we’re good at customer service” is not nearly enough
- Actively demonstrate that customers will stay with the business based on gathered and documented feedback
- That the current owner is VERY CLEAR about what they are doing next, i.e. living their new dream, which does not involve only playing golf or going on a cruise!
Admittedly, you get these right and growth may very well follow suit, and the owner may not want to leave after all (which has happened) but growth is certainly not the starting point.
Happy to talk through this at any time. If you want to explore what is useful and productive in an Exit Strategy in your context, please contact me.
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 | Oct 25, 2015 | build a Mother of a Business, business ideas & thinking, Buy a Mother of a Business, entrepreneurial mothers, Finish Unfinished Business, how to sell a business, inspiring women, SELL your Mother of a Business, single parent l single mother, so you think you're in business, start with the end in mind
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
