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…
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…
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.
Did you know you can win a 30min mentoring session with some of the most amazing biz women in Oz for only $4? Including 3 sessions with me.
@MotivatingMumOz is currently running Mummy Mentoring Festival, where 30 mentors have donated 57 mentoring sessions, all in the name if raising funds for @COPEorg – supporting women with struggling with the pre and post-natal challenges of parenting.
Last bids are 10pm on Fri, Sept 30 so pop on over and take a look now: http://bit.ly/1Yxa8OY
Did you know you can win a 30min mentoring session with some of the most amazing biz women in Oz for only $4? Including 3 sessions with me.
@MotivatingMumOz is currently running Mummy Mentoring Festival, where 30 mentors have donated 57 mentoring sessions, all in the name if raising funds for @COPEorg – supporting women with struggling with the pre and post-natal challenges of parenting.
Last bids are 10pm on Fri, Sept 30 so pop on over and take a look now: http://bit.ly/1Yxa8OY
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.
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.
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.
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
BIG question for you Business Owner is: how to orchestrate “Extended Leave” from my very own business?
That is, to carve out the time for you to enjoy perceived FREEDOM of business ownership and to look forward to going back to well established, thriving business when the time is right.
“Why would I want to do that?”, I hear you cry!
“I’ve structured my Business so that I can do both.”
“I’ll be OK, I can work around this surely.”
“How hard can it be, I’ll just take the work with me.”
Granted, there seems to be this unwritten, unspoken rule that goes along the lines of, if you are a business owner then how dare you think about taking time off for any reason, let alone for an extended holiday. Some would argue that wasn’t it because of this FREEDOM that many a business starts in the first place?
Seriously, whatever plans you put in place at the time of extended leave will generally work out in the end, for the most part. Were they ideal is the question explored after the fact, but then it’s too late. Instead, why not consider consciously locking out time to spend holidaying, knowing you do not have to worry about the day to day mechanics of the business for a set period of time?
Here’s what I know for sure, leaving what you want to happen to chance is quite often the worst way to think about how you want the months away to play out.
Hasty decisions made tardily in a stressful period may not be in yours and your business best interest. If real difficulties arise, sometimes the issues can trigger a throw-in-the-towel moment, resulting in walking away and just “shutting up shop”.
Let this not be you!
Appreciating that if this is extended leave #1, then you don’t know what you don’t know…yet. And even if it is break #2 or #3, one cannot be relied upon to be the same as the last, so newly formed considerations should apply each and every time.
From one who has been there, done that e.g: travelling on BIG adventures every two years after having taken over a business, building it to 7-figures and selling it after a 15 year reign whilst as a single mother…facilitating a structured way to have a chunk of time off and being paid regularly is critical.
Spending time seriously thinking through what proper measures to put in place to be able to enjoy being an adventurer and Business Ownership is a crucial step in being able to handle both. I guarantee the plotting and scheming you invest now will serve You, Partner, Business, Clients, Suppliers and the greater community so much better than if you do not…
So, firstly (given we are in planning stage), let’s take a moment to get clear on the current state of your Business by running it through (what I affectionately call) the “So You Think You’re In Business” Scorecard.
The final score not only gives you a snapshot of how you rate your business today but going through the process also reveals the opportunities and the reworks needed to finish your unfinished business in readiness for this next BIG holiday in your Life… if you’re up for the challenge that is?
The point about doing this is to highlight, with a tactical focus:
• What needs to get done?
• By when?
• What necessary adjustments need to be made?
• Who can help?
• How to rollout?
So, why is this important?
When starting out in business, it is often touted that you should “start with the end in mind”. I for one talk about it all the time! However, whilst I completely understand that by bringing a BIG holiday into the mix it is not THE end of your business. Assuming you want to come back and step right in where you left off, you need to set it up that way.
Giving this a good hard think and deciding what to do may be influenced by the much-debated notion of why can’t I “have it all”? As we know, just because you can (potentially) doesn’t mean it’s the best thing to do, for you, at this particular time in your life.
What you choose to do with your business has to work for all concerned.
My intent for you is therefore, by going through this starting point exercise, as a line-in-the-sand eye opener, it enables you to acknowledge the gaps within your
Business and therefore investigate the ways and means to set up life whereby you can have as much of the “all” as makes sense for you.
Let’s face it, the most precious commodity a human has is that of TIME.
It cannot be banked, withdrawn and used at a later date. It is not refundable, no matter how hard you wish it to be. And you also know how long it has taken you to grow your business to where it is today. Taking all this into account, by being guided through with your pre-holiday that on enables you to comes to terms with how to combine Basking and Business.
If worse comes to worse and you just can’t see how it can all piece together, we can always talk about taking the Business to market and selling it… but let’s not be rush into anything just yet.
Wishing you all the best in whatever you decide to do.
The Brilliant Biz Mum Conference & Awards is a celebration of amazing mums in business – by way of showing off their products and services, listening to their amazing stories and celebrating their achievements.
The Conference & Awards will be held on May 14th, 2016 featuring approx 40 stallholders, amazing speakers, workshops and networking galore in the day! The Awards night is a fun night of celebration and networking directly after the Conference – culminating in awarding 13 amazing mums in business as the best in their field.
The Awards
The Brilliant Biz Mum Awards are all judged – there is no social media voting – so all winners are determined based on merit.
The judging panel is made up of the Award sponsor (a Biz Mum who has experience within the field and is managing the category) and two guest judges.
If you have being having serious doubts about how you can continue with your business (for whatever reasons), then please let me help.
The Happy NewS Year is a month in and maybe your business is not or will not be performing as intended. And that sinking feeling is slowly but surely setting in…
STOP RIGHT THERE!
Talk to me.
Let’s go through what you have and work out what your options are. This is gift to you, you only have to ask.
Completely confidently.
Make contact via the various ways noted on the site or email me at info@theentrepreneurialmother.com.au
Don’t be shy. Don’t be proud. Don’t stick your head in the sand. We’ll just start by talking. Truly…
Travel is one of the best things for clearing your mind and really being able to concentrate on what makes your heart sing. By default, in doing so can also upset the current apple cart, specifically if you realise that what you’re doing is not cutting it, i.e. it’s time for a change.
Over the 2015-15 break, I was most fortunate enough to spend time in Antarctica. Talk about getting away from it all! But as a business owner, I also appreciate how tricky it is to be able to arrange time away like this, amongst other things.
Whilst I didn’t have such a business-change epiphany this time around, I have in the past so I fully appreciate how hard it is to then return to bring the change to fruition, and how big a deal it may end up being…
As a business owner, changing can be tricky though, especially if you have others reliant on you, whether they be suppliers, customers or staff. That said, it can be done, yes really. I’ve done it, I’ve helped others do it and you can too.
Granted, it will take some time and effort to execute but getting out is doable if you are prepared to do what it takes. This means thinking and possibly acting differently than you have previously. For some, this can be confronting, but if the need to succeed is stronger than the need to maintain the status quo, then the outcome can prove most desirable.
You’re not going to know if you don’t at least explore options.
And that’s where I come in…
Talk to me about what you have, what you want to do/have instead and I allow me to help you realise your new dream! You’re invited to email me to book a date/time for a chat info@theentrepreneurialmother.com.au
Seth Godin (acclaimed author and teacher) says to start your first business this way:
Begin with the smallest possible project in which someone will pay you money to solve a problem they know they have.
Charge less than it’s worth and more than it costs you.
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:
Pick your Topic
Create a strategic map of all that is going on within that topic and start checking for gaps and patterns
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
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?
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?
Extract contact details
Feed into your database/spreadsheet
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)
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.
Well, its that time of year again; no surprise I know but… “where 2015 go” I hear you cry!
Time certainly seems to be moving a lot faster these days, but then maybe that’s because we try and jam too much in….
As I am about to head off on Daughters and my next adventure in Antartica, I thought it worth sharing what I’ll be pondering on and I gently and genuinely invite you to do the same too… lets use the “quiet” time over New Year to do a little navel gazing…
review what worked and didn’t work in 2015, and use that information to kick-start 2016
sit down undisturbed and let your mind wander and dream about what would really make you happy
if you hear yourself saying, “I don’t want to do this business any more” then lets now do something about getting you OUT, shall we?
And here’s how:
* Finish off the year by completing this Scorecard:
* Using this as a line-in-the-sand for what to concentrate on in 2016 (and do it annually until we have sold your business), you’ll be starting down the right path
* And if you want to get into more detail, there is a 60+ page manifesto to go with this, but you’ll need to email me and ask nicely! 🙂
* I’ll also throw in a copy of my Chapter in the “Secrets of Inspiring Women Exposed” book.
ho ho ho and top of the festive season to you and yours.
denise the entrepreneurial mother
ps Over the next 5 weeks, posts will be ones I had prepared earlier!
To follow “live crosses” you are welcome to visit www.ozsee.com.au where I will be sharing when technology allows me to.
We are leaving our little corner of the earth and going to one of the quietest and most pristine places on this glorious planet of ours. I cannot express adequately how fortunate I feel about being able to do so…
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.
The thing about Online Businesses | Websites these days is that the market has been around long enough whereby there are businesses of quality, with verifiable statistics and easier to follow financials. So the information collected is more capably captured and consistent.
