No doubt selling your business is one of the most complex and important decisions you’ll ever make. Your business likely represents decades, or even a lifetime, of dedicated work. Here, we examine some key steps you should take when it comes time to sell. One of the most important steps is to begin the sales process well in advance of the date that you plan to put the business on the market. Working with an experienced business broker or M&A advisor is one of the best ways to ensure that you’ll be ready to sell your business when the time comes. It will also help you to avoid the numerous pitfalls that await. A good brokerage professional can also help identify weaknesses in your business and help you address those issues. Your broker can help you with everything from strategy and negotiations, maintaining confidentiality and establishing the market value of your business, to connecting you with other seasoned professionals, such as accountants and lawyers. Be flexible.  … [Read more...]

Customer complaints should always be treated seriously and dealt with in a timely manner.  Serious ones are usually obvious, but even those that appear trivial may be backed by considerable emotion.  Appreciate that you are hearing from the customer because you now have the opportunity to correct the problem.  A dissatisfied customer who doesn't complain is (monopolies excepted) usually a lost customer.  Customer complaints that are not appropriately addressed can fester and become larger problems.  Offering decent customer service should be neither costly nor complicated.  At its core, good customer service can be reduced to listening - letting the customer know that their complaint has been acknowledged and cataloged, and then working to remedy the situation if possible.  A good positive attitude and calm manner when dealing with irritated or dissatisfied customers can go a long way towards keeping a customer happy and halting them from expressing their feelings in an online … [Read more...]

Finalizing a deal requires carefully thinking through the deal process well in advance.  It is usually a complex process, with ample room for error, misunderstanding, miscalculation, even without the inevitable wild cards.  In this article, we explore the top ten steps you can take to avoid wrecking a good deal. Confidentiality – At the top of our “how not to wreck a deal list” is confidentiality.  It is vital that everyone involved in the deal takes steps to avoid a breach.  Experienced business brokers are experts at maintaining confidentiality. Flexibility  – The second tip on our list is to be flexible. A lack of flexibility can absolutely destroy a deal. You shouldn’t go into a deal expecting to have all of your terms met. Be Open to Negotiations – Just as it is critical to be flexible, it is also important to embrace the concept of negotiation.  Sellers are used to being their own bosses, but when it comes to successfully selling a business, no factor is quite as … [Read more...]

First impressions hold true for your company as much as you personally.  It's always best to put your “best foot forward” in your personal life and in business.  It is prudent for every company to step back and evaluate its initial point of communication with customers and clients on a regular basis. In today’s digitally interconnected world, it is critical that customers and clients feel as though they are not just being listened to; they really want to be heard.  Emails must be responded to promptly.  This is true regardless of whether the email is from a customer requesting more information about your goods or services, or if it’s a message with a question or complaint.  If your company is unresponsive, this fact can quickly spread on social media. Of course, customers and clients still pick up their phones and make calls.  While many people’s first impressions of your business are increasingly likely to be via your website, there is no denying the importance of the phone call … [Read more...]

Many sellers make the mistake of failing to do their due diligence on buyers. While buyers generally know how critical it is to perform due diligence on both the business they are looking to purchase and the seller, buyers often neglect this important step.   Deals fail all the time.  Sadly, this means that all parties lose a tremendous amount of time and effort and sellers often lose money due to business disruptions during the process of working with a prospective buyer.  Let’s dive in and look at a few warning signs that you should look for when dealing with a buyer.  The sooner you spot these red flags, the sooner you can avoid potential problems. There are several key questions that sellers should ask. The list includes: -What, if any, other businesses have you considered to date?  -How much equity will you be committing?  -Do you have any experience with my kind of business?  It is important to look for warning signs early on, as this is the way that sellers … [Read more...]

Damon Neth is a Professional EOS Implementer of the Entrepreneurial Operating System®.  Author of X-Formation: Transforming Business Through Interim Executive Leadership, he has founded five companies and acquired four others.   EOS® is a powerful set of business tools that provide a framework that empowers companies to create a clear vision throughout their entire organization, and in the process, boost the health of the company as a whole.  This article discusses EOS® and how it could potentially transform your organization. What is EOS® All About? EOS® is based on the book Traction: Getting a Grip on Your Business, which is written by Gino Wickman.  The effectiveness of EOS® is underscored by the fact that EOS® is currently utilized by over 10,000 companies around the globe.  EOS® is a powerful set of tools that, as Neth explained, “are being used by businesses every single day to grow, transform and capitalize on opportunity and deal with problems.  These tools provide … [Read more...]

Lamar Stanley, a Director at Gen Cap America, describes insights about selling a business from experts at private equity firms.   Understanding Small Business Over the decades, Stanley has amassed a considerable amount of knowledge and expertise.  He points out that it is easy for people to lose sight of the fact that many so-called “overnight successes” are actually the result of ten or twenty years of hard, thankless work.  It is through these years of laser-like focus that entrepreneurs are able to bootstrap their business.  Additionally, these business owners need to not only have a vision, but also the insight to bring on great people to help build their business. The Benefit of a Deal Attorney Stanley feels that working with a deal attorney can make a tremendous amount of difference, as it can increase the chances of a successful transaction taking place.  Deal attorneys understand the deal process, which can make all the difference when it comes to streamlining the … [Read more...]

Selling your business is most likely one of the biggest decisions you'll ever make.  If you own a business, you understand just how all-encompassing it can be.  Nevertheless it is important for you to step back and seriously reflect on whether or not you are truly ready to sell.  The psychological aspects of selling are not trivial.  Various aspects must be taken into consideration before initiating the process to sell. Far too many business owners believe they are ready to sell, only to discover (much too late) that a better option exists and an executed sale is not optimal for their plans.  Selling When There is No Other Choice  Selling a business because there is no other choice, such as situations concerning failing health, personal issues or problems with a business partner, isn’t a true choice at all.  In this situation, the psychology of selling is essentially irrelevant, as you have one option, namely, to sell. The Case of Burnout  In other cases, owners hit a … [Read more...]

There are many reasons why small companies are put up for sale.  Some of the more common reasons can actually have little to do with the company’s general performance.  For example, many small business owners discover that they need to sell for health reasons or personal concerns, such as divorce or partnership issues.  While a business downturn or fear of a larger competitor looming on the horizon might prompt many business owners to sell, economic drivers are not the only issue.  Owners may want and need to sell, but often it isn’t always that simple. Many business owners are looking to retire, but are unpleasantly surprised to learn that they simply can’t afford to do so.  Still yet, many business owners don’t truly want to retire or sell, but instead they just want more freedom in their lives.  The day-to-day responsibilities of owning and operating a small business can take their toll.  Many business owners are looking to make a change and would love to be free of this burden.  … [Read more...]