Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "How do I Build the Machine to Work ON My Business vs. IN the Business?". Running a business can be complicated as it needs a lot of work and effort. However, by working on it effectively will make a huge difference when it comes to selling it. Watch the video, listen to the podcast https://vimeopro.com/freedomfa…/business-brokers/…/389990100
Robert Hirsch from Freedom Factory talks about how to build the machine to work ON your business versus how to build the machine to work IN the business. Freedom Factory is the world's best business broker helping entrepreneurs sell their business for maximum value. Visit Freedom Factory's official website here: https://www.freedomfactory.com/ Do you want to sell your business? Contact Freedom Factory for a business appraisal. Contact: Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. What is Entrepreneurial Freedom https://youtu.be/ziY-Jgbj1Yc What Does Freedom Mean to me to Sell my Business? https://youtu.be/jju89Hj1_8Q Strategies for Getting Your Company Ready to Sell https://youtu.be/ct7rH4cPrvM Should I Hire a Consultant or a Business Broker to Sell My Business? https://youtu.be/y-VoHLY-iwM #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://tylertysdal.com
An encouraging offer can go southern in a split second (how to sell my business). Just since a person you know sold their company in a comparable industry for $5 million doesn't imply your's will. You'll require to look for specialist advise, typically from a broker, to aid provide you a better understanding of what your service deserves.
Different sectors use different multipliers. Some are profit-based or revenue-based and some are money flow-based. A service broker will certainly provide you an excellent manage on what your numbers resemble out there location as well as be able to offer some excellent criteria numbers. Once more, a service broker can be truly beneficial in this ability - sell my business.
Look within your very own market for possible prospects that may be seeking to broaden. Companies that you have a cooperative relationship with may see you as an excellent possibility to expand their client base or a growth right into a brand-new product line. Take your time. A lot of purchasers will have less than $200,000 to spend and typically have not had an organisation before.
How To Sell My company For Maximum Value
Look at their motivations for buying - sell my business broker. People that just see buck indicators usually are not sensible buyers for local business. It is possibly sensible to keep the sale of your company quiet from most of your company. Letting way too much information out could create a panic as well as see vital staff members rushing to find brand-new jobs.
9 tricks To Successfully Sell Your business
Rather, generate a few essential individuals you trust. Obtain them to buy into your vision as well as strategy for the sale. When the moment comes, they can assist minimize any type of worries staff members might have and have the ability to steer the ship in the ideal instructions. If a purchaser detects a possible mutiny, the bargain will certainly be off.
With the sheer volume of companies striking the market from boomers seeking to retire, competition for the attention of competent buyers with sufficient sources to shoot will be tough. Just those that have actually placed in the moment to evaluate their firms as well as make the suitable changes will certainly gain the benefits.
Selling A company To A Competitor
For several entrepreneurs, the idea of constructing a successful firm and at some point offering it for millions of bucks represents the business desire. You can increase the likelihood of accomplishing this objective by taking specific steps to prepare your business for an effective merging and also procurements deal (sell my business). The following pointers stand for the actions I took to effectively offer my previous company to eBay (NASDAQ EBAY.COM) in 2009: Expand your earnings.
4 errors To Avoid When promoting Your Small Business
Do not be overly brought in by top line (gross) earnings, as most of acquirers will certainly condense your revenue to net or EBITDA (incomes prior to rate of interest, tax obligations, devaluation and also amortization). EBITDA is most likely to be the metric used for evaluation purposes. Make certain you do every little thing you can to grow this number.
Selling A Small Business: A Step-by-step Guide
Button up your publications. An audit or professional testimonial of your financials is most likely to be needed as component of an M&A process - Robert Hirsch. Consequently, you should take into consideration obtaining one or the other completed (by a trustworthy bookkeeping firm) earlier rather than later on. A main evaluation or audit will certainly also offer your buyer confidence about your income as well as will certainly inform you on what a GAAP audit/review resembles.
For M&An objectives, emphasis on what the acquirer is trying to find. Establish an earnings juggernaut. Establish a revenue juggernaut (with somewhat unknown capacity) that will certainly permit you to obtain a higher multiple. The juggernaut ought to be software program when possible (transaction based and/or persisting earnings). See to it your juggernaut has a hostile monetization method.
How To Sell My personal Business
Do not allow surprises to come up throughout due persistance. If there are any potential fires, placed them out before going into an M&A procedure. Address conflicts come clean with anything that a buyer might take into consideration "unpleasant" and have a brief (60 secs max) description for the problem or inconsistency. There is absolutely no reason to say sorry for anything that occurred in the past.
promoting A Small Business: A Step-by-step Guide
Clarify and also carry on. Created a 3-year economic estimate. It will be needed to implemented 3-year monetary forecasts. Ensure the numbers you task are attainable (sell my business online). Hitting your financial estimates will certainly be definitely crucial once you start the M&A process, consisting of due persistance as well as settlements. Hitting/beating economic forecasts is excellent while in the M&A process; missing economic forecasts can halt the process or seriously threaten the worth of your sale.
Any type of prospective customer is going to look carefully at the growth possibility of your service. For that reason, before and also during an M&A procedure, it makes calculated feeling to expand your sales efforts, which might suggest working with extra sales associates as well as increasing your general investment in development efforts (sell my business broker). Create a SWOT evaluation.
Your prospective buyer will attempt to poke holes in your business, given that they will intend to get the best rate feasible. Be prepared to focus on your toughness and opportunities and also defend your dangers as well as weak points. Enhance your visibility. Before and also during your M&A process, you need to take full advantage of whatever opportunities are readily available to enhance the exposure of your service.
Create a listing of all your possible acquirers. sell my business online. Be certain to include the obvious (similar companies) as well as the not so obvious (businesses that would take advantage of your solutions). Treat this checklist like a sales checklist research the business, present yourself, go over critical collaborations and also always keep your prospective buyers in the loop on your landmarks.
Entrepreneurs often tend to commingle individual and company properties for convenience. Nonetheless, for objectives of M&A, you should remove commingling and make sure that you are paying on your own a wage huge enough to cover your basic expenses and also enjoy a feeling of financial safety. When discussing during an M&A process, demonstrate a history of compensation.
The Process Of How To Sell A Business
M&A consultants will do a whole lot of the heavy lifting in order to pitch your firm to interested purchasers. For beginners, an M&A consultant will certainly aid you prepare a teaser record and management discussion for your service. They will certainly additionally help you much better comprehend and present your financials. Once you are all set to visit market, the advisor will certainly make phone call to potential customers as well as established company monitoring conferences.
Which Contract Type Is Best to Sell My Business
Check out Freedom Factory for info regarding
What Contract Structure Should I Use to Sell My BusinessHaving the ability to successfully articulate your past, present, as well as future financial efficiency is critical to an effective M&A process. Have a knowledgeable controller or CFO on personnel to assist with monetary evaluation and also management. Cut the fat - sell my business. Very carefully look at your expenses and also ask what "fat" can be reduced to enhance EBITDA, margins as well as overall profit.
Carefully consider your existing resource allotment. Can you move sources from one location (reduced profit/EBITDA) to higher carrying out areas?Consider choices to M&A. Offering your company is just one of several ways to accomplish a liquid event. Alternatives to M&An include endeavor capital, partial liquidation (drawing some chips off the table, however remaining to develop for a larger buyout), or elevating mezzanine or bridge loan (usually in the form of a car loan with some equity; repayment terms are most usually linked to an ultimate sale).
February 21, 2013 6 minutes reviewed Point of views expressed by Business owner contributors are their own. Are you looking to offer your organisation this year? If so, here's some good and trouble. First, the trouble. If you're seeking to market immediately, you probably will not obtain amount, as it takes a great year of prep work to market prior to you really place your business on the market.
And also, if you in fact take the time to prepare your company for a sale, you'll more than likely dive to the top of a purchasers' short checklist, simply since a lot of vendors do not do the appropriate "prep job" to make the sales procedure simple and transparent. So exactly how can you best established on your own as much as win when you sell your firm? Right here are some suggestions to obtain you headed in the ideal direction to get the best value for your company by the end of the year.
The same holds true for your business. You'll want to compete the following year with good financials, so keep your documentation up-to-date as well as document every little thing. sell my small business. Outline every responsibility of each task as well as include vital performance indicators that clearly establish what is expected of each player and also team.
Selling a business can be done in different ways. You could sell it on your own, hire a consultant, or a business broker. Each option has its pros and cons. Determining what type of industry you are in, how soon you want to sell your business, and how much you want to sell it play an important role in your choice. Watch the video to find out which one best suits your situation and which one can help you sell your business at a maximum value. Visit Freedom Factory's official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/should-i-hire-a-consultant-or-a-business-broker-to-sell-my-business Contact: Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. Grow a Business or Buy a Business? https://youtu.be/tRnGER_zV1Q What is the Process to Sell My Business Quickly? https://youtu.be/PQ6HGRr2Ig8 How do I Leverage Other Peoples' Money For Buying a Business? https://youtu.be/bTPAvu5g_OE Don't Make The Single Biggest Mistake When Selling Your Business https://youtu.be/J_6rXGD7LOw #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-has-been-helping-entrepreneurs-sell-their-business-for-maximum-value/
Today's episode of the podcast, Robert Hirsch from freedom factory talks about What How do I Connect to My Purpose with My Business? Listen to the podcast. https://t.co/OntPtx36wx
Hi Robert Hirsch again, and I want to talk to you about something, which is a question that we get a lot, which is small business consultants. Should I hire them? Do I hire them before selling? And I must admit I've got a bit of a conflict on this. I was a consultant for a long time, both a management consultant as well as liquidity consultant.
So, just understand my bias before we get too far into it. So a lot of consultants have relevant experience, but what very few consultants have relevant experience in is selling their business. What hasn't worked well that I've seen in the past is when someone has a general advisor and they're giving them general information, which may or may not help the valuation.
And usually in that handoff is where we lose a lot of value, meaning the advisor gives the advice, the company implements it, but it doesn't make any difference in valuation. So if I was to hire a liquidity consultant, I would make sure that they sell businesses full time and don't do anything else. I would make sure that they're a licensed broker and I'd make sure that they can take you from consulting before you take it on the market all the way through a successful sale. And so I would find a licensed broker and be able to do that.
The other thing that I think is pretty critical is I would make sure that someone speaks your language. For example, I've seen a lot of miscommunication when an entrepreneur tries to work with a banker and they find out that entrepreneurs don't speak bankers and bankers sure don't speak entrepreneur. So find a broker that is an experienced entrepreneur that's been doing it for a long time, that speaks your language and that's going to give you the best results, which is going to maximize your sales price.
Now, if you have questions on this or anything like it, feel free to reach out to us at Freedom Factory and we'll see you soon.
Entrepreneurs make money by selling products or services to customers. What differentiates a successful business person from an unsuccessful one is his ability to connect his purpose to the business. Great business people use business as a Trojan horse to their goal. That way, the company becomes not just a source of income but a source of inspiration and motivation. If your business doesn't connect to your business, then you must watch this video. Visit Freedom Factory's official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/how-do-i-connect-to-my-purpose-with-my-business Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/freedomfactory Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal https://soundcloud.com/tylertysdal https://www.facebook.com/tylertysdals
Robert Hirsch discusses The Secrets of Selling Your Business for Maximum Value. Listen to the podcast or watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389990100
How do you sell your business for maximum value? Robert Hirsch from Freedom Factory, discusses the Secrets of Selling Your Business for Maximum Value".
Listen to the podcast, watch the video, or read the transcript below.
What are the Secrets of Selling Your Business for Maximum Value?
Hi, it's Robert Hirsch from Freedom Factory. And I wanted to talk to you about a really important subject. And these are really the secrets of selling a business for maximum value. And so, at Freedom Factory, we do a lot of the work for you in terms of what it takes to be able to sell your business.
And we have a great partnership, and I'll get into that in a little bit, but more than anything else what we do is help you craft your best story, and when you're crafting a story, it needs to make sense to buyers. It needs to make sense on why you're selling, why you started it, why the business has grown.
What are your sustainable competitive advantages or your key differentiators in the marketplace? Some people call that unique selling proposition, but we need to create a story that answers more questions than it creates. When you create stories buyers hit the brakes and it slows down. As we've talked about a lot, time kills all deals. So it's really working with the right broker that's going to help you craft that story. Also, when you're selling your business, be super authentic and true to who you are. We're in my backyard now in the mountains of Colorado, and it is a gorgeous, yet slightly chilly all day. I was up here and we're thinking about it. I'm answering these emails and I'm like, . Why don't I just go outside and shoot a video and I'm not in the office. I put on a sport coat because it was cold. But I get to authentically be myself. And when you're authentically yourself, people can feel it and hopefully you feel that now.
And when you're selling your business, we want to make sure your buyers feel that. That's unbelievably important. And so I often talk about when you pick a broker, it's a partnership. You need to make sure the business is going. The number one reason that deals fall apart is because something changes. Your sales drop off a cliff. You don't hit your projections, et cetera, et cetera, et cetera.
You want to make sure that every time you give a buyer a set of projections, you need to have an already hit. I speak virtually, but you want to make sure that you're going to hit it otherwise, just be a little less optimistic. But we want to create a track record of success with our buyers where we systematically exceed their expectations. I've had sellers tell me at the end, they say, Robert, this is my best sales month ever. Do I really want to sell it? And I'm like, Huey, this is exactly the time to sell it. You're on a high, you're on the home stretch, you're selling it for maximum value. And this is just making the buyer feel more comfortable with their decision.
And not only are you getting paid once, but you're getting paid once, plus your multiple, right?
So if you sell it once, you get the money from that. If you sell it on a four times multiple, you're actually making five times that. It's great. These are the best problems to have. When you have a business broker, you want to make sure that you find the best one that's going to be able to drive the most value. We've taken businesses and been able to reposition them. We've been able to recast their financials. We've been able to literally over triple the selling price of the business to what they expected coming in from their EBIDTA.
This is really different than a realtor or a broker for real estate. Ultimately when you're selling real estate, you're limited by the appraisal value. So even if you have the greatest broker in the world, it's not going to make that much of a difference compared to at an average broker, maybe five or 10% but when you're talking about doubling or tripling your price, you need to take all the information that's available to you. Put it together. Find the right partner, and then go to market together.
The broker, he or she is going to be selling your business. And that's all we do here at Freedom Factory. You the entrepreneur, are going to be running your business and making sure that we stick the landing to drive it through to a successful completion. If you have questions on this or anything like it, why don't you give us a call here at Freedom Factory? We'd love to talk to you about it. I'm Robert Hirsch. Thank you so much for spending your valuable time with us and we'll talk to you soon.
How do you sell your business for maximum value? For someone selling a business, your goal is to sell it at a maximum price possible. Unfortunately, not all businessman who sells their business sells it for the highest price because many factors can make or break the deal. There are secrets to maximizing your company's value when selling, and that's what you'll learn in this video. Visit Freedom Factory's official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/what-are-the-secrets-of-selling-your-business-for-maximum-value Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://tytysdal.com
How can you leverage other people's money for buying a business? Robert Hirsch from Freedom Factory discusses frequently asked questions by business owners, and people who want to start a business.
How can you leverage other people's money for buying a business? Robert Hirsch from Freedom Factory discusses frequently asked questions by business owners, and people who want to start a business. #business#entrepreneurship#startbusinesshttps://t.co/zCXeC5RVp1
Hey everybody, Robert Hirsch from Freedom Factory here, and I want to answer a question that we get a lot, which is, how do I pay for a business. Now after doing this almost exclusively for 20 years, all you do is see these deals go through. And what looks normal to me is really different to a lot of my fellow entrepreneurs.
And so I was with a group of entrepreneurs speaking to them last night. And what they told me is they said, Robert, I don't have 2 million sitting around to buy a business, you know, maybe a private equity guys or venture capital guys, or more successful entrepreneurs. But that's not me. And I thought about it and I gave a little bit of a chuckle and I realized that they're probably not the only entrepreneurs that think this. And so I wanted to talk about different ways to pay for a business. So there's a couple ones that are pretty interesting. You can do it either through equity or through debt. Right?
So let's start with equity. So equity, you can put together an investor round to acquire a company. You can secure it by the business. For me, I do better with just a few investors, not a lot of little ones - the friends and family. And that can be nice for smaller things.
But for me, I like one or two sophisticated investors if I'm going to raise an equity round. But the reality is, I think for most businesses this size, I liked debt for in 90% of applications, and we can talk about what the difference looks like in a little bit.
So there are different types of debt. My favorite kind of debt when I'm buying a business is seller financing. So if the seller is selling a great business, and you've probably seen some videos of mine talking about the difference between you'd rather buy a great business at a good price and a good business at a great price. So if you're selling a great business and the seller is confident in their business, they'll be happy to take a note on it.
Sometimes it's as little as 10 or 20% when you're trying to bridge the gap. Sometimes it's as much as 90%. I've seen 90% solid carry just secured by the business, and if you're not successful, the business goes right back to them and they like their business. So they're happy to do that.
There's also bankers, but it's so funny, the old Axiom about bankers wanting to lend you money, when you don't need it, and don't lend you money when you need it. In my experience, that's been true. If you've got a successful business, the lending of money on it, but they're going to want you to collateralize it with your other business in most circumstances.
So bankers are there, and if you've got a great banking relationship, maybe it works out well. But what I've seen work out the best is small business loans or SBA loans, small business administration loans. And you can do it as with as little as 10% down. So if you're buying, let's say you're buying a business three X and it's 2 million, that means it throws 666,000 a year in free cash flow.
And if you can buy that for $200,000 you look at stock valuations and things along those lines, but when you're buying a business at three X and you're putting 10% down, as an entrepreneur, I can't think of a better deal than that. An SBA loans had their own restrictions. You have to put a personal guarantee on it. I think they cap it at $5 million currently. We can talk you through all the complexities of what that looks like, but SBA loans are great. And then, the big thing in terms of the plan that you put together is talk about your stupid human trick or the one thing you do better than anybody else.
I've talked about it many times in the past and I'm pretty good at sales and marketing. That's all I do. All I do is sell businesses. And if I look at a business that has a superior quality product but a sales problem, well that's a great fit for me because I can fix it like that. Or maybe you're a software engineer from MIT and you can build great software programs and you've got this business is on fire, but your software program is held together with duct tape and bubblegum. Well, you can come in and solve that problem right away. So when I buy a business, I try and be strategic about buying a business that fits my skillset.
And remember, when you're buying a business, you don't have to have $2 million to write a big check. And sometimes ironically, buying a business is cheaper than building it yourself. If you're buying 666,000 and free cash flow for 200,000 I would have a hard time building it for that. So I hope this stimulated your creativity.
If you have any questions about that, why don't you give us a call up, freedom factory or anything else and we'll be happy to walk you through it. I'm Robert Hirsch. Thank you so much for watching. Please like and subscribe and we'll see you soon.
Today's episode of the podcast, Robert Hirsch from Freedom Factory discusses "Key Difference Between Owning a Business and Owning a Job". Do you own a job or a business? Many entrepreneurs don't recognize the difference between the two. If you are a businessman, it is essential to know how your company performs if you're physically there and if you're not. Listen to the podcast or watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389990100
Do you own a job or a business? Many entrepreneurs don't recognize the difference between the two. If you are a businessman, it is essential to know how your company performs if you're physically there and if you're not.
That way, you can find out if your business continues to profit or not. There's a litmus test to find out if what you have right now is really a business or just a job.
Listen to the podcast, watch the video, or read the transcript below.
Hi, Robert Hirsch here from Freedom Factory, and one of the most frequent questions we get is, can I sell my business? And the answer is always yes. It just depends on what's the price. And if you own a job, it's very difficult to sell. And the multiple is usually one or less. And if you don't know whether you own a job or you own a business, there's a really easy litmus test to find out.
Just don't show up for a few weeks. If your income stays the same or goes up, you're on a business. If it goes down, you own a job.
The good news is there's a lot of value to be created by taking people that own jobs and transition to them, to people that own businesses. And what I mean by someone that owns a business or a business that holds its shape, if you will, when you're not there, when you're not the primary entrepreneur, you have systems and processes and employees and team that makes sure that you generate as much value as you can. So let's jump into that. Let's jump into what that looks like. So again, if you're not sure if you own a business or you own a job, just don't show up for a couple of weeks. If your income stays the same or goes up, you own a business. If it's lower, you own a job.
The good news. If you own a job, you can transition it to a business pretty easily. What you want to do is build your operations manual, your systems, your processes, and your team to get yourself out of the traditional workflow. So you're working on your business and not in it. If you need any help with processes like this, just give us a call at Freedom Factory. Thank you so much for watching. Please hit like and subscribe and we'll see you soon.
"Seller Beware! The Big Reasons Deals Don't Close". Listen to Robert Hirsch from Freedom Factory in this podcast or watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389990100
Hi everybody. This is Robert from Freedom Factory and I want to talk to you about it a pretty serious topic today, and it's the biggest reason that deals don't close. Now, personally, my close rate on deals has been really strong over the last 10 or 15 years, but I see a lot of people, you know, the industry standard, they close less than 50% of deals.
So, it's almost unbelievable when you think 50% of people that agree to pay a price for a business don't actually buy it. And I want to jump into why that is, and more importantly, how can you can make sure that doesn't happen to you. So first of all, when the biggest reason that I see that deals don't close is usually when the numbers drop off a cliff.
And the reason that happens is because the entrepreneur is trying to do too much. So as running a business as an entrepreneur takes a lot of work, and when we sell a business, we're partners for a short period of time. I talk a lot about our 147-day selling process and a lot of times it works in that time. Sometimes it takes a little bit longer, sometimes or even faster. But the number one thing when we're selling your business is to let us do our job as you have to do your job and make sure the numbers are still going on the same trend line that they were. If you're growing at 3% a month. The this time can be the absolute most important time for you to do it. Not only because you get paid the best. What that means, for example, let's say, you're selling your business on earnings and you're getting a multiple of five times earnings. When you sell it, you're actually getting paid six times on every sale you ever make, which means you're getting paid once in the cash and five times you're earning is when you sell it.
Now, if you were making six times your usual value when you sell a business, do you think you would sell harder? I sure would. And having the right broker and the right partner to be able to sell it for you, we're going to handle the process. We're going to handle the phone calls. We're going to handle the Q and a, the diligence.
We're going to prequalify your buyers. We're going to take all that off of your plate. In fact, until the buyers had been prequalified, and we have an LOI on the table, we don't even put them on the phone with you. We want to preserve your time as much as you can so you can run your business as profitably as we can, and we can do our job.
And again, what we do at Freedom Factory is make sure to build as much deal tension as we can. So that's getting the most people introduced to the business, either through a combination of inbound or outbound and marketing materials going through a Q and A process and getting all the buyers to go to our process, meaning the sellers process.
We do Q and A here. We do prequalification here; we do LOI's here. We start to go through and we get the funnel and we find the perfect buyer and the perfect fit for you. Bottom line is the partnership's pretty simple - for the next year, you run your business, we focus on selling your business.
When you're talking to a broker, you're making the right decision. Try and find somebody that's not just a sales guy or just sells businesses for a living. Find a career entrepreneur; someone that speaks entrepreneur, somebody that understands that. Just because you've built the business and got it to here doesn't mean that you want to run it for the rest of your life.
Sometimes as entrepreneurs, I look at us as the producers or the builders or the contributors, and, and if I'm not on point and on passion in my business, you can feel it. And it's not the same thing. And so if you're an entrepreneur that has a business that you're no longer passionate about, just because you took the train to Chicago, doesn't mean you want to drag the train around with you once you get there. Give us a call and we'll be able to help figure out the best way for you to transition to something you are passionate about so you can build massive, massive value.
One other truth is that time kills all deals. And every deal goes sideways. We have buyer's remorse. People often talk about it's the house as the biggest purchase you ever going to make. Well, that's not true if you're buying or selling a business. Often for me, buying and selling a business is the biggest purchase, or is the biggest purchase or sale that my clients are ever going to make.
And the more time you have, more likely the buyer is to have a little bit of buyer's remorse. Or if one little thing goes wrong, maybe they latch onto that, we have a bad month or bad week, and they use that as an example of why the business isn't as good as they thought they would. So at the best-case scenario, they're going to try and buy it for a little less of a price, which isn't going to feel good to you, the seller, or to me, the broker. And the worst-case scenario is they just back off and they go dark and they don't want to do it and they pull it out of escrow, and then we have to begin the process all over again.
So again, when you, when you look at these types of things, what I've found in 20 years of doing this is every deal is going to go sideways at least once. And that's where my experience comes into play. That's where we can get it through. I've seen deals go sideways for every reason you can think of yet I still get surprised and see new deals go sideways all the time. We'll get you through it. We'll keep a smooth, steady hand. You keep running the business and keep the fundamentals going up and up and up, and we're going to sell your business for more than anybody else in the marketplace.
Now, if you have any questions on selling your business, why deals go sideways or what the process looks like. Why don't you give us a call at freedom factory? We'll talk you through that and any other questions that you might have. Thank you so much for watching. Please like and subscribe and we'll see you soon.
A seller’s goal is to close the deal the soonest time possible. Great deals are a win-win situation for both the buyer and the seller. However, selling a business is not always a smooth sailing process. There are factors that cause the deal not to push through. As a seller, it is a must to know what these reasons are and avoid them as much as possible. It only takes a single mistake to break the entire deal. Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/ Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/
Robert Hirsch from Freedom Factory talks about whether you should 'Grow a Business or Buy a Business'. Watch the video, listen to the podcast, or read the transcript.
Hi Robert Hirsch from Freedom Factory, and I want to talk to you about something that's pretty important for an entrepreneur. And frankly, I don't think most entrepreneurs consider, which is when they want to grow their company, do you want to build it or do you want to buy it or growth by acquisition.
Now, historically, a lot of entrepreneurs haven't really considered it, and the reason for that is that buying and selling small businesses has been a pretty inefficient asset class. It's hard to find the right one. It's hard to find a real one. It's hard to know what business you're in. Not a lot of brokers really disclose a lot of meaningful information and unless you're applying EBITDA of 5 million or more, you don't necessarily view it that way.
But I'm here to tell you that that's not necessarily the case anymore. Money is made on the buy and you want to, you want to find something at a fair valuation. Warren buffet said it, I think best. He said, I'd rather have a great business at a good price than a good business at a great price.
I think what he means by that is an exceptional business with this sustainable competitive advantage will always be worth more than an average business. Again, when you're looking at it, you're trying to think, okay, how do I find a great business at a fair price? So at Freedom Factory, we really specialize in selling great businesses. If you can find a great business at a good price, it can make a ton of sense. There's two other points of leverage that you might want to consider. One is if you have a complementary product set or a complimentary customer set. And what I mean by that, let's say you sell phones and you're looking at buying the headset company, or buying headsets to would plug right into your phones. Your existing customers would be interested in it. And if you could get a 10 20% take rate on that, you might be able to pay for your business in less than a year if you bought it at three, four or five times earnings.
The other thing which I talk about more in other videos is what I like to call your stupid human trick. Or really, that's the one thing that you do better than anyone else. And everyone's heard of the 80 20 principle, right? 20% of your work delivers 80% of your results. Well, when you get to an expert level at something, in my experience, it's really turned into 95 -five. So 5% of my work delivers 95% of my results.
Now, that can really multiply your efficiency and efficacy in your business. And what I mean by that is if I could do that 5% 20 times, I could deliver 20 times the business results that I could otherwise. So let's land the plane and talk about exactly what I'm saying. So let's say, for example, for me, my background is in sales and direct response marketing.
So if I can find an engineering company with a superior quality product that's extraordinary, that has a sales problem, I can probably dramatically shift the line by focusing on fixing the sales and marketing problem, which comes really naturally to me, and allows me to make huge differences in your company.
So for example, we've had clients that have bought companies at four times earnings, and they've paid for itself in less than nine months because you use that stupid human trick to really dramatically shift the line on your business. Going back to build versus buy. I know it's been an inefficient market class, but you don't always have to build organically.
Money's made on the buy. Look for great, great businesses. See if you can find businesses that are complimentary to yours. Maybe it's a luggage company and you have a travel site. See if you can plug it into your existing customer set, or you can plug your products into their customer set.
And finally, as entrepreneurs, we all do a lot of great work on figuring out our stupid human trick. And there are a lot of tools for that - Kolby, Meyers Briggs, figuring out your profile and what that looks like. A lot of people like the enneagram model, but whatever you can do to sharpen and hone that edge of figuring out what you're best at and making sure that you can leverage that in a business, can provide dramatic results and make buying a business really makes sense. If you have any questions on a great business for you or under stupid human trick, why don't you give us a call it freedom factory? Thank you so much for watching.
Choosing to grow a business from the ground up or buy a business is something that shouldn’t be taken lightly. It needs critical thinking, analysis, and consideration of all important factors. If you have the skillset, knowledge, time, and capital, then you might want to consider starting your own business. On the other hand, buying a business seems a wiser decision, especially if the company is already established and has a huge market. All you have to do is to learn how the business works, especially the processes and tools, and you’ll be able to grow it further. Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Tyler Tysdal SEC News https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/
Robert Hirsch from Freedom Factory talks about the 3 Ways to Maximize Your Company's Value. Freedom Factory is the world's best business broker helping entrepreneurs sell their business for maximum value. Visit Freedom Factory's official website here: freedomfactory.com/
Do you want to sell your business? Contact Freedom Factory for a business appraisal.
What are 3 ways to maximize your company's value? Robert Hirsch gives discusses the details every business owner should know in order to get the top value if and when they sell their business.
What are 3 ways to maximize your company's value? Robert Hirsch gives discusses the details every business owner should know in order to get the top value if and when they sell their business. #entrepreneurs#business#valuehttps://t.co/Fv0xHCTyW7
How to Maximize Your Company's Value - https://www.freedomfactory.com/ Selling a business means doing everything you can to maximize its value. The more valuable your business is the higher the sales price will be. Maximizing the value of your business can be done in many ways and the tested and proven effective ways to do it is through maximizing multiples, recasting financials, and maximizing intangibles. Selling a company is a daunting task, more so, if you are going to ensure that you will be able to maximize its value. This is why it is important to work with the best business brokerage firms to help you navigate through the process of maximizing the value of your business. Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. How Do I Sell My Business? https://www.youtube.com/watch?v=DZ9h6HRbPJE What is Your Stupid Human Trick? https://www.youtube.com/watch?v=n6Lu-iQfq8A #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://tylertysdal.com
Robert Hirsch talks about how to sell a business quickly and the best process to follow.Selling a business quickly seems a daunting task, but with the right system and tools, the selling process can be done in just a short period of time. The decision to sell a business has never been easy, much more, if you have to go through the process all alone. Fortunately, there are brokerage firms specializing in selling businesses at the highest price possible. Such brokerage firms ta...ke into account all important factors to maximize the sales price and will employ all necessary measures to close the deal in a timely manner. You can also watch the video here https://vimeopro.com/freedomfa…/business-brokers/…/389989968 Contact Tyler Tysdal at Freedom Factory https://www.linkedin.com/in/tyler-tysdal/ https://www.linkedin.com/in/tyler-tysdal/
