8 facts to help you determine if you own a business or an expensive job. if you own a business than you own an asset that others might want to buy from you. If you own a job, than most likely your business ends when your self employment does.
The Music Industry Illustrates the sometimes exponential value of owning a unique brand. Artists like Bruce Springsteen who own their name, Amazon who owns their distribution experience and Peloton who owns a unique community all illustrate how these unique aspects drive up their respective values.
If you are a business owner you will often have to “fire “yourself from the day-to-day grind of your business so you can truly unlock the value of your business.
To Grow the Value of my Business requires more than just increasing profits. It requires me to optimise my business on the 8 key value drivers a potential buyer would look at.
Use the art of bundling both your expert and general services to capture customers, build their lifetime value, and drive up the value of your business.
Despite having no grapes, vats or wineries of their own – nor experience in the industry – Michael Houlihan and Bonnie Harvey were able to create, grow and sell Barefoot Cellars for millions. 15 lessons they shared from this experience are listed below.
As you know, it is far easier and efficient to cross-sell a new product to an existing customer than it is to market and find a new customer for that product.
If you are looking to just grow your top line revenue, then cross-selling is a very effective technique.
However, you do have to be mindful as to the extent of your cross selling and how it affects your revenue diversification. In some instances, if you cross-sell your existing customers too much stuff, it could make your business far less valuable.
Amazon Prime is arguably one of the most successful examples of a company transforming its repeat customers into repeat business subscribers on the planet.
Not only did the average customer life time value (LTV) more than double, the the success drove tens of thousands of non Amazon customers to subscribe and engage with the company off the bat as repeat subscribers.
As Amazon knew (and clearly illustrated) repeat business drives the value of a company, but not all repeat business is the same.
“I wasn’t being strategic, I was going through a divorce!”
Divorce often sinks a company but John the owner was able instead to transform his company into an independent asset. Today he works 90% less hours, his company is growing, and he enjoys the business much more.
is your business independent or does it own you?
10 Questions Often Asked When Looking to Sell Your Business One of the most intimidating aspects of selling your business can be facing the barrage of
Wisdom is not the same as Intelligence or even technical knowledge. Thousands and tens of thousands of very smart business owners were technical experts at what they produced and should have had business success, but their companies lie in unmarked graves across the economic landscape.
Lack of market demand is the primary reason provided for many start ups failing, but that does not fully explain why 50% of SMEs fail within five years.
“Prepare the business for a sale even if no intention to sell currently or in the future”
Why ? Because if you are preparing to sell from now (even if you do not intend to actually bring the business to market anytime soon), you will position your business to provide you multiple options when it does come to exit. That can mean passing along a well-functioning business to your children (instead of a lemon that prematurely ages them as they struggle to deal with its inherited issues and problems), selling your business at a premium (due to multiple and/or strategic buyers) or other options in between (minority sell off, etc)
Why did you decide to become an Entrepreneur? If you’re like most owners, you aspire to have the freedom that comes from owning your own independent business. This desire for freedom often leads owners to aspire for a bigger business, which they think will give them what they want. Unfortunately, most owners who strive for more revenue or profit as their primary goal often end up with less freedom as slaves to the day-to-day grind of their business.
There’s an alternative to get you closer to what you want..
Excellent Service drives up the value of your business. In this article I illustrate how Amazon solved an AED 1,835 issue for me that generated over AED 400,000 in business value for them. It’s a formula (excellent service – repeat customers – high multiples) they practice again and again.
The Major Blind Spot Blocking Business Value “…Do not think you are wiser than you really are” (Romans 12:16) I wrote an article last month
Financial Freedom – “You Proofing” Your Business In a previous post, I spoke about the Freedom Point and the risk in holding on to your
Are you Achieving Financial Freedom through your Business? When did you last calculate how much of your net worth is tied to your company’s value?
Have you struggled to identify a recurring revenue model that will work in your business?
If so, you’re not alone.
Most owners understand the benefits of recurring revenue, such as predictable cash flow and an increase in their company’s valuation, but struggle with where to start. Just changing your pricing from a one-time transaction to a smaller, recurring fee does not make a sticky subscription model.
Chasing all types of revenue by offering a wide array of products and services is common among growth companies. The easiest way to grow is to sell more things to your existing customers, so you just keep adding adjacent product and service lines.
However, there can be two drawbacks: First, you offer a wide range of products and services without any deep expertise in any of these products and services.
Second, a wide range of products and services can just confuse your customers and lead them to look elsewhere.
Should you Sell your Business Now? 5 Reasons why 2021 might be the time you look to sell your business Have you been thinking about
How practicing Situational Awareness adapted to your business can protect you against the unexpected as well as increase your business value.
A major deal in the wine industry once hinged on a single question: “What am I really buying?”
The answer wasn’t what you’d expect. It wasn’t vineyards, trucks, or facilities—it was something far less tangible, yet infinitely more valuable.
What could it be?
The story behind this unexpected acquisition holds a key lesson for every business owner.
What’s the one challenge most business owners tackle with the wrong tools? It’s not what you might think. Many pour time and money into one thing, while overlooking another that could transform their business.
Ever feel like you’re using a herring when you need a power saw?
Ever wondered what happens when a seemingly perfect deal suddenly unravels? I recently heard a story that might make you rethink your business strategy. An 8-figure offer, a smooth process… until the unexpected happened. It’s a reminder that every day in business brings you closer to an exit—planned or unplanned. Curious to know what went wrong? Dive into the full story to learn more.
Choosing the right team can make or break a deal. I helped a 70-year-old business owner secure a much higher offer for her company—everything was on track. But then, a critical mistake was made that nearly cost her everything. Ever wonder how one “affordable” choice could lead to a million-dollar disaster? This story will make you rethink the true costs of who you hire and what you might actually be doing when you choose “affordable” hires.
Don’t try to be everything to everyone. I recently met an entrepreneur who promised to handle every aspect of marketing. The result? People tuned out. She quickly pivoted careers. The lesson? Focus on excelling in one area, meeting your audience where they are, and delivering what they truly need. That’s how you attract and keep customers. Want to master this? Join our free course to learn how a 60-year-old marketing secret can transform your business.
In business, systems and processes are essential, but they must reflect your values and customer experience. A friend of mine recently encountered a situation where an abrasive negotiator who lacked connection and cultural understanding, disrupted the negotiation. The lesson? Poorly executed systems can harm relationships and outcomes. As a business owner, ensure your processes align with how you want to engage with others, leading to loyalty, predictability, and ultimately peace of mind.
Did you know every day you own your business brings you one day closer to an exit – and often it can be unexpected and sooner than you imagined. So every decision you make is an exit decision – building up or destroying what you are working so hard on.
You can’t control 100% when you exit but you can control being prepared so that you and your family can benefit from what you built whether it’s planned or unplanned (think death, disability, divorce, disease, debt, etc.).
Are you creating or burning you wealth today?
When David and his wife faced hard times with their business, they were struggling to keep afloat without spending more money. Eighteen months later, they achieved a remarkable 30% growth rate without any extra advertising costs. Discover how they transformed their business by focusing on what made them successful in the first place and cutting out distractions. Learn their strategy and find out how you can do the same for your business