A company operations manual can be very helpful in selling a business!
An operations manual is a comprehensive documentation of how a company functions.
If written correctly, it should guide someone unfamiliar with the company through the day-to-day procedures for operating the business.
Not only does creating a manual help an owner organize the company and help it to run more efficiently, but it can help in the sale of the business.
Showing prospective buyers that there is a manual can let them know that the business is well-organized and that it will be ea…
Hmm, not really sure why we do it that way…
Many businesses have systems that have been in place for a long time. And some of those systems are outdated and costly.
And if you ask the business owners why they do things that way, the answer might be "well, it made perfect sense at the time" or "I don't remember why"!
During the planning process before putting their company on the market, business owners should review all their systems to make sure they are updated, productive and cost-effective.
Showing well-run systems can make a r…
How to Get Your Employees to Care as Much as You
In 2009 Natalie Nagele and her husband, Chris, launched Postmark to help businesses deliver emails to their customers quickly.
A decade in, Nagele had grown the company to around 40 employees, which was when she began feeling burned out. The pull to explore new interests was the catalyst for accepting a life-changing acquisition offer from Active Campaign in 2022. In this episode, you’ll learn how to:
- Develop passionate employees that care about your company.
- Create raving fans that ref…
Partnerships can be difficult, but the problems must be addressed!
The beginning of partnerships in business can be very exciting and filled with great expectations of success for the future.
But as in marriages, things change, stuff happens and partners are not always as compatible as they appear.
If problems start brewing, it is critical that the partners find a way to express themselves to each other and agree on an immediate course of action.
If the problems aren't addressed, the value of the business will surely go down and no one will be satisfied.…
Getting Acquired vs Selling Your Business
In 2012, Ryan Coon started Rentalutions, a platform to help landlords manage and communicate with their tenants more effectively.
The business showed steady growth, but Coon wasn’t satisfied.
Five years in, Coon rebranded the company to Avail and focused his marketing to target DIY landlords with under ten rental units to manage. The changes proved successful as Coon grew the business to around $7 million in revenue before selling to Realtor.com in 2020 for approximately five times revenue.…
Selling Price Must Be Justified & Competitive!
Business owners oftentimes want more money for their companies than buyers are willing to pay.
Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price.
It can be very helpful to work with a business broker or mergers & acquisitions advisor to begin the planning process to be able to put the business on the market for top dollar when the time comes …
2 of the Best Ways to Make Your Company Special
Specializing in one product or service allows you to focus on delivering that thing better than everyone else. It enables you to hire (or train) specialists in your field, improving the quality of your work, which leads to happier customers. And satisfied customers buy again and refer their friends.
That’s why specialists often grow faster even while they are spending less on marketing, leading to better profit margins and, ultimately, a more valuable company. Specializing in a specific produ…
Is the business built for the future?
Changes in the market and technology are moving so fast these days that many business owners are having trouble keeping up.
If the business doesn't project a strong future, it obviously will not sell for top value or maybe won't have any value at all.
Business owners must constantly be aware of what is happening in their industry and their own markets to see what steps they must take to ensure the strength and value of their company when they are ready to sell.
Thinking of selling your …
Up In Smoke
In 2015, Lorenzo de Plano co-founded Solace Technologies, one of the first vape manufacturers in the United States. The goal of the business was to create a discreet vape pen that customers could use as an alternative to smoking cigarettes.
The business boomed to revenue of more than one million dollars a month, but a looming threat had de Plano eyeing an exit. So, when a $15 million offer came in, he bit. In this episode of the Built to Sell Podcast, you’ll learn how to:
- Bootstrap to a sev…
One Change That Can (Instantly) Add Value to Your Business
If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days.
A little internet research will probably reveal that a business like yours trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a small business and Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA) for a slightly larger business.
Obsessing Over Your Multiple