Alexis Grant’s Post

“I’m going to buy a different business,” he said. “W. . . wait . . .what?“ I stuttered. Confused, I looked over at the financials of his current business to buy some time.   I’m talking to a small business owner, and he’s just described his new “M&A” strategy to grow his small business.   “OK, before we get to that,” I said, “tell me more about your current business.”   “Well, it’s obviously small,” he said quickly, and went on to describe a 3-person shop that he’s owned for several years, concluding with, “It doesn’t make very much money.”   I sat quietly thinking for a moment, then decided straight-at-it was the way to go. . .   “If it’s a challenge to grow your current business, or to make it profitable, what makes you think you will be able to do those things after you buy another business?” I asked.   He responded quickly, “I’ve been reading that it’s easier to grow a business through acquisition than it is to do it organically. So, I thought I’d give that a try.”    He paused for a second, then smiled and made air-quotes as he said, “I’ll be a ‘deal guy’.”   I nodded my head . . . first up and down, and then side-to-side.   “You know,” I said. “Most ‘deal guys’ are pretenders. Statistics show that 9 out of 10 aspiring business buyers never end up buying a business.”   He looked surprised by that and leaned back in his chair. In response, I leaned in towards the screen and said, “And you’ve already got what most of those deal guys are chasing after.”   “Oh, yeah?” he replied, “what’s that?”   “You own a real-world business, “I answered.    He responded quickly, “But I’m struggling with this business. I’ve tried a bunch of ways to grow it, and it’s not working.”   “OK,” I responded. “Then let’s start there. Let’s solve that problem. Let’s figure out how to make this business grow.”   “But if I buy a business I could double in size immediately,” he pushed back.   “True,” I responded. “And you’ll double your problems . . . and still need a strategy that will help you grow organically . . . but now you’ll need it for two businesses.”   “So, don’t do it,” he said.   “Don’t do it . . .now,” I replied.  “Buying a business can be a great way to grow a business – but it usually only works when you’re adding on to a business that runs pretty well.  Buying a business to solve a problem is a dangerous strategy.”   He sighed, and slumped down, looking a little discouraged.   “Yeah, it can be frustrating,” I said. “But remember, you’re already ahead of the searchers. You own a business. Stay focused on it. Grow it.  Make it profitable. Make it successful. Make it real.”   He looked at me and that smile spread again as he said, “So . . . try to be a real guy, not a deal guy.”   “Exactly,” I replied. And then said, “I might have to steal that.”     #business #smallbusiness #entrepreneurship

Selling a business is an entrepreneurial dream. After years of tears and sweat in growing a business to become an empire, exiting is always the natural progression. Nevertheless, determining the right buyers, let alone the best price for the exit, takes work. While there is always the possibility of asking too much for the business, the risk of turning off potential buyers is always high. Similarly, going for a much lower asking price won’t make any financial sense. Therefore, finding a balance between the business’s worth and what the market is likely to pay is crucial. Learn more: https://bit.ly/3UcrLq2

2 Things to do Before Starting Any Business, Well I know there are thousands to do before you can start a profitable business but Get these two wrong and your business will be in the light you don't want in… And these simple things are what are making businesses collapse before they even start the business… Knowing these will save you a lot of time and effort… And these will bring you more money… I Will tell you these two things in a moment but first, you must know that the simple things are just part of many things you must do…. To run a successful business There are many other things but these are important and I will explain why now. ✅Know the problem people have and are ready to pay for it. If you see many businesses failing Day by day it is not that they aren't creating a better product or They aren't marketing the product as best as they can… But have they asked themselves if the problem they are solving is the problem people are facing and probably have money to buy their products…. Some people want something but they can't use their money to buy the products because they don't see it as important… Some will want to solve the problem but don't have money to buy the solution… And it is your job as a business owner to know which problem people are ready to solve with their money. Know this and you will save yourself a lot of trial and failure… Let me give you examples of problems people are ready to solve and spend more money: People want to lose weight People want to build houses faster. People want to retire early People want to make money without doing much People want to create a fulfilling life Etc There are many things people want to do and are ready to part with their money to buy it… If you look at the top companies in the world, they are solving a specific problem people are ready to pay money for If people don't pay for their product will they be the big companies? No Way Now the next thing you must do to have a profitable business is to ✅ Creating a better and easier solution for it. When you have already found the problems that people want to solve There are two pieces of news for you One is bad and the other one is good The bad news is that some business people like you would have created the product for it (there are competitors everywhere) Also, the good news is that you can create a better and easier solution that will help you create another market for your products… In this case, you have to work harder to come up with the best solution ever … If you don't come up with a better solution you won't make it to the market because you are dealing with people who have tasted everything… So your taste must be better if you want to sell to them… And that's how you can make a market and create a successful product for your business. The rest of the business will be easy when you understand this… #findapro #copywriting #marketing #business #money

Looking to retire or just move on from your current business? Then these tips will be invaluable.

Getting Your Business Ready for Sale: A Guide for Success!   This is an abridged version. the full version can be found using the link below: https://lnkd.in/gPCEjHxh Are you considering selling your business? Congratulations on taking this big step! To ensure a successful and rewarding sale, it's crucial to prepare your business thoroughly. Here's a concise guide to get you started:   1. Assess: Take a close look at your business's current position, strengths, and weaknesses. Realistic evaluation sets the right expectations.   2. Plan: Paint a vision for the future of your business. Show potential buyers the growth opportunities and untapped potential.   3. Systems & Procedures: Streamline your operations for efficiency. Well-organized systems make your business more attractive to buyers.   4. Financials: Keep your financial records accurate and up-to-date. Transparent numbers build trust.   5. Avoid Cash Transactions: Record all sales and expenses properly. Transparency is key.   6. Check Ownership: Ensure all assets and intellectual property are rightfully yours to sell. Resolve any legal issues upfront.   By following these simple steps, you'll be well-prepared to present your business in the best light, attracting potential buyers and achieving your selling goals. Good luck on your journey to new opportunities! #BusinessForSale #Entrepreneurship #SuccessTips

There’s a harsh reality that business owners have to face: If you hate owning your business, no one is going to buy it from you. I talk to a lot of people who are tired, worn out, and ground down by their business. They think they need to sell it in order to get out. They started their business because it was something they were passionate about, they wanted to work for themselves, they wanted to control their own destiny. But the reality of small business owners is that it’s HARD. There are all kinds of challenges, and over time, some people really do grow to resent, even hate their business. Do you think a buyer wants to buy into that nightmare? I doubt it. So working to build (or rebuild) your business to support the kind of life you want to live is a good starting point. If your business is fun to own, easy to run, and gives you desirable results, I can almost guarantee there is someone out there who wants to buy it from you. If you build a business that you enjoy owning, the buyers will come to you. And the cool thing about improving your business is that you might rediscover your passion for it along the way. Plenty of people work to prepare their business to sell, then decide they’re going to keep it. Because their stress went down and their profit went up. You started your business for good reason, don’t let the grind turn it from something you love into something you hate. Build a better business, and see the benefits forever.

10 critical factors to evaluate before selling your small business. Thinking about selling your small business? Not sure where to start? Check out these 10 important factors you need to consider before planning out your exit strategy. #SmallBiz #CEO #SellingYourBusiness

What’s my business really worth? It’s a question that business owners only think about when they begin thinking about exiting their business! Most will immediately think that their turnover is a major point in the value of their business when in fact it’s almost nothing to do with the value and here is the first truth that many miss. The first thing a potential buyer really wants to know is… how much ‘net profit’ has the business made in each of the last few years which is why it’s crucial to have a ‘shareholder’s ‘mindset when running a business and not a ‘owner operator mindset’ i.e. keeping tax bill as low possible. I came across a business owner recently who was turning over £2,7m and was forecasting sales over the next 2 years to take the business to £5m hence he wanted £5m for the business! A look through the financials revealed that the business had averaged only £270K net profit over the previous 3 years with a heavy dependence on new business and only a small amount of reoccurring revenue. Based on the profit he’s been making over the past 3 years he owned what we call a zombie business, and one that was really worth somewhere in the region of £1m (a considerable gap on what he thought it was worth) Clearly for this chap to achieve his goal, he’s going to have to make a massive shift in his mind and go all in on a new strategy… If you were to buy this business what would be the driving force behind how you would value it? I think it’s fair to say that you would probably say your first focus would be on how quickly you could get a return on your investment, the second question would be, “what is the potential return in the long run”? and “how certain are you that you could achieve those goals”? Selling a business is completely different from selling a company’s products or services and requires that we approach this well in advance so that we have enough time to put those things in place that will make the acquirer believe that this is the best opportunity they’ve seen in years in order to make achieve the highest possible valuation. While selling a business is not in of itself a complicated thing to achieve, it does require a level of experience and knowledge of ‘how’ to do it in the right way that only comes from having been through the experience many times before, which is why I highly recommend that you bring someone in who has been where you want to go in order to make the experience as easy and profitable as is possible…