Buying a company is an example of that classic situation where there is only one item for sale with potentially multiple buyers.  As one of several bidders you must expect to be viewed both in terms of the absolute value of your offer and perhaps more importantly in terms of your relative strength against other suitors.  Put simply, you are in competition with other bidders and, to make life more difficult, you will not know who the others are or even how many there are.

An example of relative strength will be the structure of the offer you make.  For example; the seller thinks their company is worth $4m, they want it all in cash and they want to exit 3 months after the deal is done.  You are offering $2m plus $3m in shares which must be held for 3 years and you the seller must stay with you for 18 months.  While the absolute value of your offer is $1m above the seller’s expectations, the structure of the deal is a long way from the seller’s desired position.
 
However, the seller will typically have to make a decision between dissimilar offers both in terms of absolute value and deal structure.  For example, you might find yourself in a shortlist with another bidder offering $2.5m cash plus $1.5m in shares which need to be held for 1 year but, like you, the seller is required to stay for 18 months.  This offer is $1m less than yours but the terms are closer to the seller’s preferred position. 

The above scenario is a simplification of what typically happens.  Sellers are usually confronted with different offers which do not enable a like-for-like comparison.  The seller has to weigh and compare different “features” across the range of offers to decide which provides best value.

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You have done an excellent job prospecting. You have qualified the prospect. You have spent time sending news letters, making information gathering appointments, developing a first class financial plan that fits their needs perfectly. This is the time to present and close!

Then, just as you have finished presenting the plan, you realize that you are getting nervous, perspiring slightly and unsure. What if they say “NO.?”

Well, uh, I don’t want to seem pushy! I’m sure they would like to think it over, so I won’t ask for the business!!!

There isn’t a salesperson alive that has never felt jitters like this. It is perfectly natural.

If we focus on why we have done all this work and look at the Close as the natural completion of a process, we may find it easier to ask for the business. If you have done a thorough job and handled yourself as the professional you are, you have every right to assume the close.

Try to remember that your prospect is well aware of how you earn a living and is just as likely to be disappointed if you don’t ask them to become clients. How would you feel if, after you left, the client remarks to his or her partner, “Gee, that was a great presentation and plan, I would have gone for it tonight, but he didn’t ask!!!

Believe it or not this happens all the time.

Remember

YOU HAVE EARNED THE RIGHT!

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Adjust your clocks as the world of work is changing. People in their thousands are heading home from the day job to build a business at nights and weekends. It’s what we call the 5 to 9 economy and it’s a great way of starting a business as it means low cost and low risk. Are you interested in joining this growing group of part-time and spare-room entrepreneurs?

Starting up a business in your spare time is, I would say, the best way to start. You give yourself time to research the market, test out your products & services, build a presence on the web and, critically, make some sales. And you can do all of this whilst holding down a job that continues to pay the bills and cover your overheads.

Consider a few small investments to get you going:

Find dedicated space in the house - it’s important to keep home as a place to which you return from work and unwind so find a dedicated space / room which becomes your home office and in which you can comfortably be in ‘building my business’ mode.

Technology - a growing range of products are designed to help the 5 to 9 entrepreneur. Create a home on the web through a blogging tool like blogger.com or wordpress.com, sell your products through sales platforms such as etsy.com and keep in contact with customers with a BlackBerry and follow-me numbers. These products and gadgets mean you can keep in regular contact with your business in a way that’s not detrimental to your job.

Develop relationships - use your time to develop relationships with possible partners, suppliers and an all-round support network. Much of this can be done online by visiting business sites and industry-specific sites where you can keep an eye on new ideas coming to market and follow what customers are buying. 

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No matter what side you were on, here are a few observations, affirmations and truths, post-election, with respect to selling:

1. Strategy and tactics are equally important. The purpose of executing tactics in a sales campaign is to drive a well-founded strategy. Tactics without a strategy is like playing darts with your eyes closed.
2. Message! Not messages, messages, messages. Decide what you are going to count on to win based upon research – a focused, objective assessment of the sales opportunity.
3. You can successfully change the ground rules even if you temporarily lose ground.
4. The understanding and leverage of political influence is crucial.
5. Messages must be clear, concise and compelling and paint the vision of a better situation for the buyer. One fumbled message can dilute the impact of a hundred perfect ones.
6. Logic and the facts aren’t the only things buyers consider.
7. Discipline rules. Seat-of-the-pants doesn’t.
8. Knowledge of your opponent’s plan to win is vital for devising and refining your own plan.
9. Direct and blatant “bad-mouthing-the-competition” doesn’t generally work.
10. Never underestimate the underdog.
11. Want to win? Look the part.
12. Tell the truth before your opponent exaggerates it.
13. Choose the right team. The salesperson is CEO of their own virtual sales corporation. Whom they choose to stand next to them and to advise them can make a big difference.
14. Whomever has momentum at the time of close generally wins. Its very difficult to build momentum just at the right time without a plan.
15. Embrace technology. It permeates pretty much everything most of us do.
16. Go broad and deep into the customer’s organization as appropriate. (Ideally effective marketing will have blazed the trail in advance.

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One of the things that new business owners tend to be very scared of is someone else stealing their business idea. After all, they’ve spent a lot of time, effort, energy and money developing the idea and the last thing they want is someone stealing the business idea and developing it instead.

I’ve even known a new business owner who completely abandoned his idea when he found out that a competitor had started more or less the same idea as him a couple of months before – what a shame!

Let’s break this down a bit and look at some facts and then I’ll explain how to protect your business idea, but also why you shouldn’t be too afraid of other people finding out what it is.

Right now, at this moment, about 60% of the working population are sat in businesses all around the country dreaming about starting your own business. However, only about 3% of people actually will start their own business. Why is this?

Well the most common reason that people don’t start their own business is risk and fear of failure. It’s hard work and risky to develop a business idea and have the confidence to actually start up. And, I believe it takes a special type of person to actually have the courage to go for it.

So, don’t worry too much about other people finding out. Even if they think your idea is fantastic and the best thing since sliced bread, it would take someone in the 3% of the population to actually go for it. Chances are that the people who find out are in the 60% of people who dream about starting their own business, but never will or in the 37% of people who don’t have any aspirations at all to start their own business.

OK, I hear you cry – but what if I tell someone and they happen to be in the 3% of people who really want to start their own business and they steal my idea?

Well, yes there is a small possibility.

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I don’t think I’ve ever met a business owner who wasn’t busy. Managing your time is one of the hardest things you’ll need to do as an entrepreneur. There’s always too much to do, so you’ll need to manage your time well in order to get everything done. Here are my top time management tips:

Find out what you’re doing with your time.
One of the first things to do is to actually find out what you are doing with your time. Try monitoring your time for a week and see what’s going on. Use colour coding if it makes things easier i.e. yellow for administrative tasks; blue for marketing; green for client work and so on. At the end of the week, you’ll be able to see what you’re spending too much time on and adjust your time accordingly.

Get organised
The more organised you get yourself, the more you’ll be able to handle all the tasks you need to do. Tidy your desk; set up filing systems; and have procedures to deal with the work that comes in. I know it’s hard, but try to deal with each thing only once so that you get it out of the way.

Practise the “Do it now” philosophy
As soon as a new task comes in, try to “do it now”. You’ll be amazed at how many tasks you can get rid of. Things very rarely take as long as you think they will once you get cracking.

Do things in short bursts
If you’re really not looking forward to doing a task, make yourself do it for 5 minutes only. If you know you’re only going to be doing it for 5 minutes, it doesn’t look as daunting. And once you’ve got started on the task, you’ll probably find you’ll continue on it once the 5 minutes is up.

Ask yourself “what’s stopping you?”
Lack of time is often used as an excuse for not doing something.

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It is a fact that, in order for a new small business to succeed today, it needs to be able to fulfil a need in the marketplace. Small businesses that provide a product or service that hundreds of other accessible, larger, and successful companies provide as well almost always fail. As such, starting a new business has to cater for the demands of the time.

If you are currently looking for inspiration regarding small business opportunities then the top ten are outlined below. There is currently a high demand for these business opportunities, so they can help you start your tenure as an entrepreneur.

The Top Ten

1. Personal Coaching – The personal coaching industry is growing more rapidly than perhaps any other sector today, and yet does not have as many providers to meet the demand. Personal coaching is one of those small business opportunities that has the potential to infinitely grow as a result of growing consulting demand in schools, youth institutions, and similar places right through to adult education and workplaces all over the country. Although you will need diverse skills, the potential is there.

2. Business Services – In order to save money, businesses all over the world tend to stick to what they know best and employ outside agencies to complete other, more specialised tasks for them.

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Microsoft PowerPoint is the software of choice for many when it comes to making a presentation before students, employees, project team members and the like. As with other similar presentation packages, it offers many useful features and functions. The downside is that in all too many presentations, the technology takes center stage, shunting the presenter to the role of supporting act. We have all witnessed presentations that seemed designed to help us catch up on our sleep and others that were a whirlwind, “full of sound and fury, signifying nothing”.

Over the years of witnessing hundreds of presentations, I have seen my fair share of yawn promoters and storms in teacups. As a professional trainer, I thought: Why not condense the most common errors that I have seen and draw some useful lessons from which we can all benefit? Here are my top seven PowerPoint annoyances and what we can learn from each of these to improve our own performance.

1. Not telling the participants the purpose of the session

You know the kind of presentation I am talking about. From one slide to the next, you have little to no idea of where the presentation is going. You wonder whether you should even have turned up. Eliminate the guessing game by letting your audience know up front the purpose of your session and how you plan to achieve it.

2. Overdosing participants with information

Novice presenters often suffer the illusion that some content is good, so more is better. With this mindset, these presenters cram as much as possible onto each slide, filling it with font sizes as small as 10 point. Help your participants avoid eye strain and to stay interested by using plenty of white space and font sizes large enough to read from the back row. Add to your slides tables, charts and other graphics that will aid understanding your message.

3.

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Buying a business has been characterized as risky.  However, if you do your due diligence, you will reduce the risk into an opportunity.  I advocate buying a business when you want to grow more quickly and especially when there are assets that will enhance the total operation.

Before you buy a business, consider these factors:

1. How happy is the client base? – The best reason to buy a business is to expand your client base.  Evaluate the client base independent of the seller’s input and determine how you can increase sales to the existing client base.
2. Is the market for this product/service growing? – Stay away from declining markets, products or services.  Frequently, owners sell about the time these have peaked.  You do not want to inherit their future problems.
3. What is the brand promise?  Is the company delivering on it? – The brand promise is the reason that clients keep doing business with you.  If the company delivers on the brand promise, clients will keep coming back.  If not, the business is not a good buy.
4. What is the quality of the management team?

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As a business owner the business valuation process seems like a big black box. You insert lots of information into it and several weeks later you get a very thick and confusing report that tells you how much your business is worth. The problem is you don’t understand the process or the report and don’t know how to evaluate either. When reading the report, look for these common business valuation mistakes.         

Mistake #1 – Unqualified Appraiser

The most common problem with business valuation reports is that they have been prepared by someone who is unqualified. There is little, if any, regulation of the business valuation industry and it is often difficult to find firms that offer business valuation services. People tend to hire the first firm they find or their current accountant/tax preparer. Not all CPAs are competent in business valuation. In fact, many CPAs have very little or no business valuation experience or training.

Look for professionals that have at least one of the following major business valuation designations by searching their online directories.  

• Accredited in Business Valuation (ABV) – http://www.aicpa.org/credentialsrefweb/ABVCredentialSearchPage.aspx
• Accredited Senior Appraiser in Business Valuation (ASA-BV) – http://www.bvappraisers.org/find/
• Certified Business Appraiser (CBA) – http://www.go-iba.org/directory.php
• Certified Valuation Analyst (CVA) – http://www.nacva.com/dir/

Mistake #2 – Not Objective

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Many people dream of owning a business. I was a teenager when I started my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Mistake #1 – Paying too much

This results from the combination of all the other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Mistake #2 – Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Mistake #3 – Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest in these things, so he does not deserve to be paid for them.

Mistake #4 – Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Mistake # 5 – Not building a team of experts

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Are you thinking about selling your business?  Maybe you are ready to retire to Hawaii and play golf.  Maybe you want to sell your current business and invest those profits in a new for-profit or non-profit venture.  There are many reasons to sell your business, however the primary goal of most sellers is to sell the business at the highest price possible.  Today we will examine how you can achieve your goal.

As CEO and Senior Business Growth Specialist at Executive Business Advisers, I work with many clients who have a goal of selling their business in the next 1 to 3 years.  In the end, the ultimate goal of most business owners is to sell at the highest price possible.  The key question being asked is how can I increase my selling price based on my business today?  What can I do to take my $100,000 business and make it a $1 million business?  Or, my $100 million business and sell it for $1 billion?

The best way to understand your business value is to look at your business from the perspective of a potential buyer.  By thinking like a buyer, you can see more clearly the key characteristics that influence your selling price.  There are many characteristics a buyer will consider, however they all lead to the top two – Sales Revenue and Profitability. 

To increase the selling price of your business you must maximize your sales revenue and profitability. Here are proven strategies you can take to quickly increase your business selling price.

1. Sell Proprietary Products – Unique design, functionality and technology can make your products proprietary, which can increase the desirability of your company and the price a buyer is willing to pay.  Proprietary products offer protection from the competition and enables you to sell your products at a higher price and profitability. 

2.

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Aldonna R. Ambler, CMC, CSP, The Growth Strategist™ opened the EverythingJersey Conference with tips from leaders of the fastest growing companies. “Being able to focus despite background noise is your most important skill,” she said. It is easy to be distracted with worries about payroll, access to credit, competition, and the election. So, Ambler encouraged attendees to exercise, get enough sleep, and resist fast food so they can think clearly. She observed that the entrepreneurial leaders of the fastest growing companies still take the time to visit the gym several times each week.  Ambler reminded the business audience that “we are all in the same business of energy management.”  One of her clients has started to bring comedians into their meetings to help their sales people laugh, relax, and think more clearly.  Another brought in a trainer to teach improvisation techniques to improve their managers’ ability to think on their feet. 

 ”It’s important for business owners to continue to look for opportunities and not freeze during tough economic times,” said Joan Verplanck, President of the New Jersey Chamber of Commerce. “Aldonna reminded business owners that true wealth is often traced back to products that were introduced during recessions.” Ambler observed that recessions provide unique opportunities for business growth. 

Affordable Market Research – When the economy slows, customers give themselves permission to complain and whine.  A business can save a great deal of money on expensive market research by listening carefully to whining. You can look like a hero if you demonstrate that you heard what customers have said.  “Listening to what is really important to customers helps you focus your product innovation, which saves money,” advised Ambler.

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You may finally be in the position to fulfill your life-long dream of owing your own business and feel that buying an existing profitable business offers many advantages to starting from scratch.  That may or may not be true.  An existing profitable business will have customers, employees, established product lines and the existing equipment necessary to run the business.  But buying an existing business is a lot different from buying a new house or car.  There are lots of things you must be aware of or your dream could turn into a nightmare. 

The seller is more than likely represented by a professional business broker.  If you do not have expertise in buying a business, your first step should be to hire professional representation.  If you are going to spend upwards of half a million dollars on a business, it only makes good sense to spend a few thousand dollars on a highly competent professional looking out for your interest. 

The seller will have taken great pains to present the business in the best light. The business can look like it is an ideal acquisition.  The thought of owning your own business can generate strong emotions.  So the second thing you must do is temper your emotions.  As the Godfather said, “It’s just business.”  Do not get emotionally attached to owning any business.  Stay totally objective about the business.  Being emotionally attached to owning any business can color your judgment and allow you to make a poor decision. 

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Starting up your own business today is not an easy task. There is so much to think about, including cash flow, start up costs and employment figures, but that is only after you come up with a viable business idea to begin with and get the right structure in place. For example, you may choose to operate your business alone or you may choose to take on a business partner. Choosing a business partner is something that you must consider after the initial start up if you find that you need a little help.

Going into business with a partner can offer you the support you need in order to make the business work. However, if you have chosen the wrong business partner then it can lead to a lot of stress, arguments and even a failing business. As such, it is imperative that you take the time to choose the right business partner and the ten tips outlined below will help you.

Essential Tips

1. Assess yourself first – You need to know what you are looking for in the right business partner, but the only way you can realize that is to assess your own skill set and shortcomings.

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