Last night I was watching a Netflix special on the 2004 Boston Red Sox.
It took Boston 86 years to win a championship and this documentary highlight how they finally got past the hated New York Yankees in the semi-finals.
A key aspect in that season was when the General Manager Theo Epstein traded an icon of the team Nomar Garciaparra to the Chicago Cubs as part of multi team trade.
Nomar was a legend in Boston but Theo felt the team would not win a championship with the current team.
So Nomar was traded so could Boston could shore up its defense … and it worked.
The Red Sox went on to beat the Yankees and eventually win the championship.
And it got me thinking about what a business owner said to me when we discussed what would go into valuing his business.
Would the time and effort he put in matter?
No it would not.
Just like Nomar’s past accomplishments didn’t save him from being traded.
An investor will look at your business based on how much he feels it would pay him if under his control.
If not very much.. or hard to predict.. than he walks away.
Now to be clear.. the key concept here is under his control. So he will look at how much your business would generate with his marketing behind it.. or by selling your stuff to his customers and vice versa and some other factors.
The quality, predictability and value of your customers, etc.
In short, just like the baseball executives… the investor will value your business based on how he or she feels it will perform with him calling the shots.
And if you want to find out how to attract an investor by making him confident, comfortable, clear and excited to invest in you, log in or join the Business Owners Club.
Once inside, access the special on how to attract the investors you want for your business and sign up for the free open office zoom discussion on November 19.
P.S. Building Legacy and Lasting Value for Business Owners
I help business owners break free from the daily grind to lead with impact, boost value, build legacy, and set up for a successful exit—creating the life they dreamed of, starting today.
Discover how our Socratic Success System brings clarity and tailored solutions, so you can make real, lasting changes with ease.
Find out more at Sophiall.com and on my LinkTree.