If you decide to sell your business to an outside acquirer, you’re going to have to decide between a financial and a strategic buyer—understanding the different motivations of these two buyers can be the key to getting a good price for your business.
A financial buyer is acquiring your future profit stream, so they will evaluate your business based on how much profit it is likely to make and how reliable that profit stream is likely to be. The more profit you can convince them your company wil…
Business owners have been known to refer to due diligence as "the entrepreneur's proctology exam."
It's a crude analogy but a good representation of what it feels like when a stranger pokes, prods, and looks inside every inch of your business.
Most professional acquirers will have a checklist of questions they need answered if they’re considering buying your company. They'll want answers to questions like:
· When does your lease expire and what are the terms?
· Do you have signed, up-to-date…
Small businesses stay small either by choice, or because they start chasing growth in the wrong places.
When you strip away the layers, it all comes down to darts.
Imagine a dart board with a bull’s eye and around it is a series of wider and wider circles. The bull’s eye is where the people just like you hang out. They are the people (or businesses) who feel the problem your company set out to solve. They are usually your first customers and raving fans.
The further you go outside of your bull’s ey…
Post-Traumatic Stress Disorder (PTSD) is a mental health condition triggered by experiencing a terrifying event. Although not at the level of enduring a war zone, the events of March 2020 may leave you feeling similar symptoms.
If you’re like most business owners, the first quarter of the year was progressing like any other.
A superbug started terrorizing the world. Professional basketball was cancelled. One by one, the world began to close its doors.
A significant blow impa…
Many businesses are loaded down with problem issues that can affect the sale of the company.
This baggage can be in the form of overpaid and/or unproductive employees, outdated or unused equipment, expensive leases on old equipment, unsellable inventory or an expensive lease on outmoded facilities.
Buyers can struggle with these issues and sometimes walk away. Business owners must take steps to deal with this baggage before they try to sell their company.
Does your business offer a service or a product that you differentiate through a higher level of service?
If so, you're probably disproportionately impacted by the economic disruption caused by the coronavirus pandemic. Consumers are cutting back on services to avoid human contact and conserve cash, but we are still buying products that solve a specific problem.
Businesses are buying products like Zoom, and Slack for teleconferencing and consumers are dropping services in favour of product…
If you find yourself in a position where your customers always insist on speaking with you directly instead of your employees, then you might want to consider shifting your structure so you can improve the value of your business.
Here's why: a business that can thrive without the owner at the center of all its operations is more valuable because processes can run smoothly with or without you.
If you're too stuck in the weeds, you'll have a difficult time improving or evolving – and your employees…
How’s your workload these days?
If the pandemic has forced you back into the weeds of your business, you’re not alone. Many owners are again doing tasks they haven’t done in years because they have had to lay off front-line staff or their employees have fallen ill or are caring for someone in need.
Being back in the middle of things is neither healthy for you nor your business long term. Personally, it’s a recipe for burnout, and professionally, your business will be less valuable with…