2. I’m selling my business after 20 years time to take it easy? No, its time to work hard
3. When Negotiating – Those who want it less – Wins?
My focus is working with business owners and individuals with the process of buying and selling businesses. These concepts apply both to the process of buying and selling businesses as well running a small business.
1. When starting your business, you are the face of your company, you may be the sole or only interface between you and your customers or clients. Firstly this approach does limit the amount of growth your company can/may experience. Secondly if the company is so reliant upon you, What happens to your company if you are gone? Do your customers buy from you or your company? Are they the same thing. Are you building value in your company? If you sell your company and you leave, what do you have to sell? In the beginning of building your business – you are the guy/girl. This business depends upon you, it relies upon you. Preparing for the eventual exit of your company your efforts should be towards one of reducing that dependence on you. So what can you say, or what do you want to be able to say – “this company cannot run without me”; Or “this company runs fine without me.” Is preparing your business for eventual sale similar to your business plan for future long sustaining growth? When positioning your business for sale, or just growing your business, work on making the company one that is NOT “All about Me.”
2. You started a business and have owned it for 20 years and now want to look to sell it in a year – What should you do? Run it like you will own it for the next 20 years. This is done with certain limitations to capital expenditures, and capital improvements, but speaks more to the mindset needed during this period. Starting a business, growing it and running it for 20 years and then selling it for significant gain is similar to running a marathon. Like in a marathon sometimes Small business owners “hit the wall”, are done and just want to exit/finish, sell their business and be done. But why run hard for 22 miles and then walk the last 2 miles? Finishing strong in a race is always good. And a small business that “finishes strong” can pay big rewards. Would you rather buy a business that is trending up or trending down. Also, if you “start walking” and your business doesn’t sell, what is the state of your business at the end of that walk?
3. Could it be when negotiating, he who wants it LESS wins? If you are looking at a potential new supplier that is hungry for your business and your present supplier is doing a good job, what is the likelihood of negotiating favorable pricing terms from the new supplier? A salesman calls you on the phone and wants to offer you SEO services but you are currently page 1 on Google Search and getting 4,000 hits per day but he is willing to do “what it takes” to get your business-can you negotiate a good deal? You are looking at buying a business. Currently you are looking at 3 similar businesses to buy. 2 of those businesses offer great seller financing. You ask for seller financing from the 3rd, and you are willing to “walk away” if you don’t get your terms. What is the likelihood of you accomplishing those terms? When establishing terms you need are you willing to walk away if you dont get those terms? Or put another way, my wife wants to buy a new house, she wants this specific house, so I am assigned to negotiate with the buyer. Being that “we” really want the house, am I prepared to present conditions that are “deal breakers.” Am I willing to walk away if I don’t get the $3,000 price reduction? No. And to those that are married – I need not say more. In these cases negotiating is very difficult as we are not one that “Wants it Less.” Actually the “wanting it more” is so great that I feel I exit the world of negotiating and enter the world of hoping…