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5 Killer Mistakes with Customers

Posted by garydamp

There are 5 big mistakes you can do that will kill a deal with a big fish. They are:

1. Not meeting the client’s expectations
2. Mishandling a client crisis
3. Taking on more than you can handle
4. Putting all your eggs in one basket
5. No resources to provide stock or refunds

Any one or combination of these can not only kill the partnership, but have the ability to take down your company as well.

If you need help with any of this, try my GUIDED TOUR to get all the help you could ever need. www.advancedbc.com.au/guidedtour
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#customerservice#businessgrowth # customerretention


Get Ready, Get Set, and Go!

Posted by garydamp

Get ready to sell your small business

Business owners are always time-challenged, have staff issues and, cash flow is a perpetual juggle. The old saying “if it is to be ..it’s up to me” has never been truer than for the business owner preparing to sell

Distraction is real, selling takes effort and additional focus to prepare the business for the selling process. This effort is above your normal operational work or day-to-day aspects where the tendency is to focus on the urgent things rather than the important issues that build long term value. Focus is a choice and discipline.

Understanding the Value of your business is critical. Most owners typically have an overinflated view of their business value until the market tells them otherwise. The majority of owners have the bulk of their wealth tied up in their business. Yet only 20% of those listed will sell and many will just close their doors. A lot of wealth is left on the table or lost.

Most owners procrastinate in developing an exit plan. This is natural as it can seem unpleasant, however, the stark reality occurs when there is death, sickness, divorce, or life-changing events when matters are forced. The outcomes can be devastating to an owner and tragic to the beneficiaries. This doesn’t have to be the case.

Alternatively, the sale or a business exit should just be a process of actually building the business. By having the result in mind it is easy from inception to continually grow the business correctly. Ask the daily question, “Will this decision enhance the value for an investor in the business?”

By consciously acting like a company that does everything to empower the shareholders it will naturally shape to being a valuable and saleable business.

Whether a total exit, management buyout, partial sell-down, or retained interest an owner will maximise their business value by making conscious decisions daily. Having an investor-ready business allows ‘opportunity to meet preparedness’ if an offer or situation presents itself. Exits take time, so start acting now for future benefit.

Get your business in shape at www.advancedbc.com.au/system


14 THINGS TO CONSIDER ABOUT SELLING YOUR AND THE TRANSFERABILITY OF YOUR BUSINESS

Posted by garydamp

It is estimated that only 20% of businesses listed for sale will sell. Of those that are sold many of the new owners will fail to transfer successfully into new ownership. As a seller getting the ‘transferability’ of your business sorted can reward you handsomely for de-risking the purchaser.

Avoid selling stress consider 14 things

The sale value of your business is ultimately bound to how transferable the elements of your business are to someone else. Being transferrable increases your business attractiveness as well as the sale value by providing a higher business value multiple against your EBITDA (Earnings Before Interest Depreciation & Amortization) benchmark.

Here are 7 transfer considerations and 7 Mistakes commonly made

7 transfer considerations:

  1. Is the Business too dependent on you
  2. Can the People transfer (human capital)
  3. Can the Customer relationships transfer (customer capital)
  4. Can the Process and Technology transfer easily
  5. Can someone else learn the process
  6. Can Business continuity and growth transfer
  7. Will the Social Capital transfer – brand, culture, trust, and values

7 Transferability killers are:

  1. Poor or unsubstantiated financials
  2. No clear Market Dominating Position
  3. Owner & keyman dependence
  4. Poor documentation
  5. Lack of transferable systems and process (not repeatable) – No rhythm
  6. Risk – Product Liability, Lawsuits & contingent issues
  7. Customer risk – excessive customer reliance (1 customer responsible for 80% of revenue)

The best remedy is always to start with an end game in mind. Build value throughout the business cycle. Building from scratch with a focus on value, rhythm, and process will help. Behaving in the interest of the shareholders versus just the owner is a must. By following the vision, using discipline, and process the transferability of your business will be enhanced as with the saleability of your business

To learn how to create a great business and enhance transferability go to www.AdvancedBC.com.au/myguidedtour