Scale Up Your Business Podcast
How to Sell Your Business
When you start your business do not begin with the exit in mind, start and grow a great business first and when you make the decision to sell your business start early and become more prolific and be prepared, understanding you are not going to be able to do it alone you need to surround yourself with good people.
In this episode, Nick takes an in-depth look at when and how you should sell your business.
When you start up you have a proof of concept, you’ve got a market fit and you’ve created something that’s selling. When you get into scale-up you have options and with a lifestyle business, you have a business that’s earning money.
Moving to the performance business level is where you really start to scaleup - you are creating teams and infrastructure there is more complexity.
The capital event is the end game and should only be considered after you’ve started and scaled but the best time to sell your business is when you are ready
Listen in and find out exactly what you should do any why in this episode that is packed with content and value.
You have to be cautious and controlled when you are selling your business o you can navigate the timing so you can leverage the best opportunity for you.
You may have created something and it’s now time for someone take it to another place.
Where can you sell a business - look for business for sale websites, often a sale will come from someone you know, a competitor or a supplier looking to extend their value chain.
A broker has expertise in how you can position yourself and advertise your business
You must leverage social media – go out and tell the story of your business and state you are looking for investors then people will come and have a conversation.
Ensure you have NDA’s in place when you are communicating with potential buyers
Ask the right questions to make sure they are serious Why do they want your business what can they add?
It’s not about people showing you how much money they have up front.
If you have someone with the right strategic outlook there are ways of structuring a deal without money upfront.
Don’t close down any opportunities, the best deal could be the one structured in an unorthodox way rather than just a cash or money deal.
Create a detailed information memorandum – the quality of the IM created in a succinct way is one of the most important things to have in terms of selling your business.
It’s a mini strategy document and it can influence the psychology of the person looking to buy.
5 biggest mistakes when selling
Not planning ahead or waiting too long to sell
Not finding the right person to represent your business
Thinking you don’t have to promote or market yourself
Asking too much or too little for your business
Selling the business to the wrong person
When you start your business do not begin with the exit in mind, get focused, start and grow a great business first.
‘I’m always looking for the 1+1 =3’
‘Conversations can turn in ‘why don’t we buy your business’
‘I’ve bought a few in my time and I’ve sold a few in my time’
‘You are better off giving up a bit of margin to get the best price and get it done in the most structured and most successful way’
Scale Up Your Business Podcast
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ABOUT THE HOST
My name is Nick Bradley. I’m an entrepreneur, author, speaker and investor.
My background is in growing and scaling VC and Private Equity backed businesses.
Having successfully built, bought and sold a number of companies, and removed myself from day-to-day operations, my focus now is on helping entrepreneurs get to where they want to be, in business and in life. As well as investing in growth businesses and backing turnarounds - with the ultimate aim of creating value from significant capital events.
I’m passionate about personal and professional development - showing up and being the best version of myself ... every day.
My bigger vision is to help bring entrepreneurial skills, experience and mindset to people in developing nations - so they can follow their dreams, live life more on their terms - utilising entrepreneurship as a global force for good.