- January 30, 2020
- Selling Your Business
- by Rich-Biz Brokers, LLC
YES! Rich-Biz Brokers helps sellers and buyers of businesses … with motivation driven by an alarming statistic. The fact is that 70% of small businesses are never sold … they just close.
The upshot is business owners and their families in Central Virginia are in financial jeopardy. So back to our motivation … to enhance the financial well-being of this at-risk group to avoid becoming one of the 70%.
To illustrate our dedication to this goal, please indulge a one-minute “read” of a story that deserves repeating.
Building a Cathedral or Beating a Rock
A man came across three masons who were working at chipping chunks of granite from large blocks. The first seemed unhappy at his job, chipping away and frequently looking at his watch. When the man asked what it was that he was doing, the first mason responded, rather curtly, “I’m hammering this stupid rock, and I can’t wait ’til 5 when I can go home.”
A second mason, seemingly more interested in his work, was hammering diligently and when asked what it was that he was doing, answered, “Well, I’m molding this block of rock so that it can be used with others to construct a wall. It’s not bad work, but I’ll sure be glad when it’s done.”
A third mason was hammering at his block fervently, taking time to stand back and admire his work. He chipped off small pieces until he was satisfied that it was the best he could do. When he was questioned about his work he stopped, gazed skyward and proudly proclaimed, “I…am building a cathedral!”
Three men, three different attitudes, all doing the same job.
In contrast to the first two workers, the third had a clear compelling vision of what success looks like. Likewise, our differentiator in selling and buying businesses is a clear sense that the welfare of people is at stake, not just commissions earned.
Business Owners Don’t Wake Up Thinking About Selling Their Businesses!
In large measure, the reason so many businesses are not sold – but shuttered – is a lack of foresight and planning. And that’s fully understandable when small business owners are faced with the daily challenges of generating revenue, juggling inventory, customer satisfaction, employee relations and the pursuit of profit to survive.
R-B’s mission is to financially enrich small business owners and their families through sale-of-the-business Planning, Preparation, Promotion and Post-sale guidance … the 4-Ps. Your timing of this process may be immediate or in anticipation of a future sale.
The objective is to significantly reduce the percentage of businesses that remain unsold in Central Virginia.
So, if you are a small business ($750,000 – $35,000,000 in annual revenue) ready to sell, interested in selling in the future or are a trusted advisor who counsels business owners … be sure to read the next issues of the Rich-Biz newsletter to study what you need to know about the 4-Ps of getting ready – Planning, Preparation, Promotion and Post-sale guidance. Here is an outline of what you will learn:
Planning
- Ready to go now … advice and tactical assistance to execute
- Will sell … need to decide when; financial realities; emotional readiness
- Transition/exit strategy planning options … family; employee purchase; financial buyer; strategic buyer
Preparation
- Viewing your business through eyes of buyer
- Curb appeal … facilities; staff; etc.
- Less visible, but critical issues to address … 6 Drivers, etc.
- Pricing … realistic based on third-party evaluation
Promotion
- Not a DIY effort
- Choosing expert advice and sales partner (R-B); proven track record;
- Aggressive, but anonymous exposure to potential buyers
- List the company for sale through wide-spread local network and national contacts
Post Sale
- Post-sale advice, guidance and exit-strategy counseling.
Takeaways
We’ve covered a lot of ground and you may be left with the feeling that all of this is somewhat overwhelming. Not to worry … that’s a typical reaction which mellows out when you know that there is help available.
That’s where we come in … to help you decide on the best exit-strategy via sale or succession planning. You and your business are unique. Together, we will work with you and deliver action-oriented business advice to maximize your company’s value and promote its sale through our local and national network of qualified buyers.
