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 | Apr 8, 2016 | BUY a Business, Buy a Mother of a Business, entrepreneurial mothers, growth by acquisition, inspiring women, start with the end in mind, women in business case studies
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
by theEmother | Feb 2, 2016 | business ideas & thinking, Consultant EXIT Options, EXIT execution, exit strategy, Finish Unfinished Business, PrimeTimers, Sell Your Business, SELL your Mother of a Business, so you think you're in business, start with the end in mind
Hip hip hooray!
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…
Hip hip hooray!
by theEmother | Jan 22, 2016 | adventures with daughter, Consultant EXIT Options, exit strategy, Finish Unfinished Business, MEinc, single parent l single mother, so you think you're in business, start with the end in mind
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
