If you’ve built a successful business, deciding when to sell it can be gut-wrenching. You’re making good money. You don’t need to sell and your business acts like a giant, tax-efficient slush fund to pay for just about anything you want to buy. Nobody likes living off their capital, so why on earth would you sell the goose that laid the golden egg?
As an entrepreneur, you’re optimistic. I know this because if you weren’t optimistic, you would have let doubt and uncertainty creep into your decision to start your business. You’d still be sitting on the sidelines, thinking of everything that could go wrong.
Most business owners dream of landing a prominent blue-chip client. Selling to companies like Nike, Apple, Amazon, or Walmart can be transformational for a business.
Although companies differ, most big brands place larger orders, always pay, are less price sensitive, and provide expansion opportunities.
When I was a kid, my father owned restaurants. Growing up, I remember my dad dreading a random visit from the health inspector, who had the power to shut his restaurants down. Acquirers also perform random inspections, although they are not evaluating your cleanliness. Instead, they are trying to ascertain how dependent your company is on you.
Most founders aim to grow sales, but if focusing on your top line attracts the wrong kind of revenue, it may do more harm than good.
This week’s Built to Sell Radio guest, Mike Winnet, provides an excellent case study on the importance of prioritizing your company’s value over its size.
Have you ever wondered why some athletes fail in the transition from player to coach?
Wayne Gretzky, the best hockey player of all time, failed to make the playoffs in four years as the coach of the Phoenix Coyotes. Ted Williams, the best hitter of all time, like Gretzky, could not lead his team to the playoffs in four years as a manager in the MLB.
By contrast, some of the all-time most successful coaches never excelled or even played the sport they coached professionally. Bill Belichick has won six Super Bowl titles with the New England Patriots, yet he never played a down in the NFL. Greg Popovich considered one of the best NBA coaches of all time, never played professional basketball.
Have you noticed something weird happens when a company hits around 20 people?
I’ve interviewed over 400 founders and noticed that when a company reaches a couple dozen employees, the company starts to face some new challenges.
Some founders decide to sell. Others soldier on.
In 2010 the Cleveland Cavaliers led the NBA with a record of 61-21. The following season, they went 19-62, finishing second to last in the league.
What caused the dramatic downfall?
After the 2010 season, LeBron James decided to take his talents to South Beach to play for the Miami Heat, leaving Cleveland in ruins.
The Cavaliers missed the playoffs for the next three years, failing to win more than 33 games in a single season.
Growing up, my entire life was centered around one goal: playing on the PGA Tour. My family and friends knew me as “the golfer,” an identity I latched onto.
I spent every day thinking about ways I could get better. My passion led me to play two years of NCAA college golf before making the decision to turn pro.
I couldn’t believe I had the chance to make a living playing the game I loved.
Then one day I woke up, and three years had passed since turning pro. I realized my passion for golf was gone.
I used to think YouTube was for kids.
I was wrong.
I’ve produced 16 episodes for Built to Sell Radio, and this week will mark the second time I’ve heard of an entrepreneur using YouTube as their primary marketing tool.
Imagine you discover that you are sitting on a winning lottery ticket that has just expired.
The jackpot would have been enough money to live the life of your dreams, but since you didn’t cash it in, the ticket is now worthless.
If you own a successful business, it can be tempting to keep building it, but when the sale of your company would fund the lifestyle of your fantasies for the rest of your life, why wouldn’t you sell?
Do you dream of selling to a strategic acquirer?
A strategic acquirer (or simply “a strategic” in M&A parlance) is a company with assets that become more valuable if they own your business.
Here are some of the most common reasons a strategic acquirer may…
If you’ve built a successful business, deciding when to sell it can be gut-wrenching. You’re making good money. You don’t need to sell and your business acts like a giant, tax-efficient slush fund to pay for just about anything you want to buy. Nobody likes living off their capital, so why on earth would you sell the goose that laid the golden egg?
As an entrepreneur, you’re optimistic. I know this because if you weren’t optimistic, you would have let doubt and uncertainty creep into your decision to start your business. You’d still be sitting on the sidelines, thinking of everything that could go wrong.
Most business owners dream of landing a prominent blue-chip client. Selling to companies like Nike, Apple, Amazon, or Walmart can be transformational for a business.
Although companies differ, most big brands place larger orders, always pay, are less price sensitive, and provide expansion opportunities.
When I was a kid, my father owned restaurants. Growing up, I remember my dad dreading a random visit from the health inspector, who had the power to shut his restaurants down. Acquirers also perform random inspections, although they are not evaluating your cleanliness. Instead, they are trying to ascertain how dependent your company is on you.
Most founders aim to grow sales, but if focusing on your top line attracts the wrong kind of revenue, it may do more harm than good.
This week’s Built to Sell Radio guest, Mike Winnet, provides an excellent case study on the importance of prioritizing your company’s value over its size.
Have you ever wondered why some athletes fail in the transition from player to coach?
Wayne Gretzky, the best hockey player of all time, failed to make the playoffs in four years as the coach of the Phoenix Coyotes. Ted Williams, the best hitter of all time, like Gretzky, could not lead his team to the playoffs in four years as a manager in the MLB.
By contrast, some of the all-time most successful coaches never excelled or even played the sport they coached professionally. Bill Belichick has won six Super Bowl titles with the New England Patriots, yet he never played a down in the NFL. Greg Popovich considered one of the best NBA coaches of all time, never played professional basketball.
Have you noticed something weird happens when a company hits around 20 people?
I’ve interviewed over 400 founders and noticed that when a company reaches a couple dozen employees, the company starts to face some new challenges.
Some founders decide to sell. Others soldier on.
In 2010 the Cleveland Cavaliers led the NBA with a record of 61-21. The following season, they went 19-62, finishing second to last in the league.
What caused the dramatic downfall?
After the 2010 season, LeBron James decided to take his talents to South Beach to play for the Miami Heat, leaving Cleveland in ruins.
The Cavaliers missed the playoffs for the next three years, failing to win more than 33 games in a single season.
Growing up, my entire life was centered around one goal: playing on the PGA Tour. My family and friends knew me as “the golfer,” an identity I latched onto.
I spent every day thinking about ways I could get better. My passion led me to play two years of NCAA college golf before making the decision to turn pro.
I couldn’t believe I had the chance to make a living playing the game I loved.
Then one day I woke up, and three years had passed since turning pro. I realized my passion for golf was gone.
I used to think YouTube was for kids.
I was wrong.
I’ve produced 16 episodes for Built to Sell Radio, and this week will mark the second time I’ve heard of an entrepreneur using YouTube as their primary marketing tool.
Imagine you discover that you are sitting on a winning lottery ticket that has just expired.
The jackpot would have been enough money to live the life of your dreams, but since you didn’t cash it in, the ticket is now worthless.
If you own a successful business, it can be tempting to keep building it, but when the sale of your company would fund the lifestyle of your fantasies for the rest of your life, why wouldn’t you sell?
Do you dream of selling to a strategic acquirer?
A strategic acquirer (or simply “a strategic” in M&A parlance) is a company with assets that become more valuable if they own your business.
Here are some of the most common reasons a strategic acquirer may…
