ExitAdvisor Blog

The Hidden Danger of Cross Selling

Anatomical Male Head Model with Neck.H03.2k

You've likely heard the adage that it is far easier to cross-sell an existing customer a new product than it is to find a new customer.

And if your goal is to grow at all costs, then cross-selling makes sense. 

However, all of that sales growth may not do much for the value of your company. If you cross-sell your existing customers too much stuff, it could make your business far less valuable.

When you cross-sell a customer so many things that they begin to account for more than 15–30% of y…

Read more…

Sellers must prepare their business for due diligence!

Due Diligence

"Due Diligence" or the "Right of Inspection" gives the buyer the full rights to inspect all items in a business -- financials, equipment, inventory, premises and anything else. And if the buyer finds any material discrepancies, he or she usually has the legal option of backing out. Some transactions fall apart during due diligence, only because the sellers have ignored fixing the problems of their business and just hoped for the best.

Let's talk confidentially about how you can prepare your b…

Read more…

10 Things Most Celebrity Entrepreneurs Won't Tell You About Building a Business

Jim Estill is one of the most successful entrepreneurs you've probably never heard of. 

In 1975, Estill started EMJ Data, a technology distribution company, from the trunk of his car and grew it to $350 million in sales before taking it public. 

In 1997, Estill joined the board of Blackberry and stayed through the company's heyday that ushered in the era of the iPhone.

He then became a partner at CanRock Ventures, a venture capital firm.

In 2015, Estill bought Danby Appliances, the company…

Read more…

3 Ways to Flip Repeat Customers into Subscribers


Repeat business drives the value of your company, and you can categorize these sales into one of two buckets:

  1. Reoccurring revenue comes from customers who purchase from you sporadically. They’re satisfied with what you offer, and they buy regularly yet not according to a specific timeline.
  2. Recurring revenue is predictable, and you get it from customers who buy on a cadence. Usually in the form of subscription or contract revenue, the main difference is your recurring revenue comes in on …

Read more…

One Bold Move That Can Make Your Company More Valuable

Henry Hyder-Smith and Steve Denner started UK-based Adestra in 2004. Adestra is a digital marketing software that helps big companies handle email campaigns, among other things.

The company grew nicely. By 2016, it had around $9 million in revenue and a client list that featured some of the U.K.'s best companies. Hyder-Smith and Denner decided it was time to go beyond their borders and enter the U.S. and Asian markets. To fund the effort, they raised $7.2 million from the Business Growth Fund (…

Read more…

Business owners might want to pay attention to the “Writing on the Wall”!


No matter what price a business owner wants for his or her company, the market is the true indicator of what buyers are willing to pay. Selling a business can be very emotional - all the hard work over the years, attachment and loyalty to employees, the profitability in the past, etc., etc. But if the business has been properly presented to the market and there are offers, the business owner must pay attention to "the writing on the wall".  He or she should negotiate hard, but must consider th…

Read more…

The Story Behind Jason Flick's $100 Million Sale to WarnerMedia

These days, you're just as likely to watch a football game on a mobile phone as you are on an old-school TV. The technology that enables you to watch your favorite show on whatever device you have handy was made possible by Jason Flick. Flick co-founded a company called You.i TV with a vision to "own the glass." He struck deals to provide the user interface, which enabled content to be viewed across devices with the likes of the NFL, NBA, and just about anyone else who produces original conten…

Read more…

How to Turn Repeat Customers into Subscribers

Many people mix up re-occurring and recurring revenue, but one is much more valuable than the other. 

Re-occurring Revenue

Re-occurring revenue comes from customers that have a re-occurring need for whatever you sell and buy from you on an unpredictable yet regular basis. 

Imagine a health food store. Customers come in to replenish their supply of vitamins when they run out. The owner is never quite sure when a customer will be back, but she’s pretty sure they will return when they run low …

Read more…

How did you come up with that number?

Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors to examine – equipment, employees, market position, technology – the list goes on and on. Business owners should get a business valuation performed by a professional to get a real sense of market value.

Let's talk confidentially about your bu…

Read more…

4 Reasons Why It’s Better to Own a Big Chunk of a Small Company

miniature-businessman-talking-together-about-financial-meeting-on-pie-chart-discussion-concept_t20_N0mRdp

Is it better to own a big chunk of a small business or a minority stake in a big company? 

It’s one of the fundamental questions all owners must wrestle with. Owning a relatively small slice of a big pie has worked out well for both Elon Musk and Jeff Bezos, who recently traded places on the list of the world’s richest person. Musk still owns around 20% of Tesla, and Bezos controls about 10% of Amazon, so they both have chosen to sell most of their company to fund their ambitions. The success o…

Read more…