If so, here’s some good and bad news.
First, the bad news. If you’re looking to sell right away, you probably won’t get full value, as it takes a good year of preparation to sell before you actually put your company on the market.
The good news? A lot of businesses have changed hands in the past several years, and there’s a fair amount of money sitting on the sidelines looking for good deals.
Plus, if you actually take the time to prepare your company for a sale, you’ll more than likely jump to the top of a buyers’ short list, simply because most sellers don’t do the proper “prep work” to make the sales process easy and transparent.
So how can you best set yourself up to win when you sell your company? Here are some tips to get you headed in the right direction to receive the best value for your company by the end of the year.
1. Sell your business the way you’d sell a house. Selling a business and selling a house are similar in a lot of ways – and most people wouldn’t ever let people tour their home without making some cosmetic changes and cleaning up before offering it for sale.
The same is true for your business.
You’ll want to run for the next year with good financials, so keep your paperwork up-to-date and document everything. Outline each and every responsibility of each job and include key performance indicators that clearly establish what is expected of each player and group.
Now’s the time to get your “house” in order. Over the next 12 months, give your business a fresh coat of paint and get it tidy.
2. Start your game plan. Seek out and meet two or three business brokers in your area, as the majority of deals come through brokers.
A good business broker is invaluable, and I typically coach companies to go the broker route, as the best brokers do more than justify their fees and can both guide and counsel you through the marketing-and-sales process.
In your initial discussion, you’ll get a better idea of who your potential buyer could be, and how to best position your company to get the most value in the marketplace.
You’ll soon discover there are basically two types of buyers: Those who are looking to buy a fixer-upper and those looking to buy themselves a job.
Ideally, you’ll be looking for an investor who is looking for a business to take to the next level, and who can work with your current team and systems – as those buyers are often willing to pay more for a business that already have effective systems in place.
3. Learn valuations for your industry or category. Another advantage of using a broker is getting solid information about the valuation models buyers will use for your company in your particular industry or category.
Different industries use different multiples. Some use multiples of profit, some revenues, and others cash flow. You can get a good handle on what the numbers for own your business simply by talking to a number of brokers and getting some benchmark metrics.
You’ll also learn where the goodwill in your business is going to come from.
Generally, your database is the biggest asset you have, although you may be in a business where stock and inventory levels will figure into the equation as well. Knowing what you have to work with, or need to focus on, will give you confidence in putting together a solid informational and sales package for prospective buyers.
4. Plan your information and sales kits. Your broker will also guide you on putting together all of your materials in an overall information and sales package, one that includes samples of all of your marketing materials, in addition to an overview of your financials, positional contracts for your team, and any of your management.
Also included in this will be an overview and inventory of your assets, equipment and any physical components of your operations. Buyers will want and need access to this information as part of their own due diligence, and the more information you can provide, the better and easier the sales process will be.
At this point, don’t be overly concerned with disclosing proprietary information that would need to be covered by non-disclosure agreements or non-competes. The objective of what is essentially a sales package is to position and present the company in the best possible light to attract the right kind of buyer for your situation.
5. Prep your team. Finally, strategise, create and then implement a good communications plan with your team and management about your goals and objectives, your desired outcome and your “reasons why” for the sale.
You may also want to seek outside guidance on this process as well, as communicating a sale can be a tricky balance. Under-communicate and you could create a sense of panic in the organisation; Over-communicate and you could do the same.
Your plan should not include only an overall theme or strategy, but also technical details on how passwords and transfers of phone numbers will take place. While these may seem minor, they are the types of items that can cause undue stress or worry as the process of transition winds to a close.
Finally, just be sure you also meet with your accountant or lawyer to make sure what kind of sale is right for you so you don’t pay more taxes than you need to as a result of the sale.
Also, be patient, and realize not every sales process is flawless. On average, one of three deals falls through in the due-diligence portion of the process.
While all of the prep work can seem daunting and maybe even exhausting, the more work you can put upfront into proper positioning and “packaging,” the quicker and easier the sales process will be, and the more value you’ll get in return. Ultimately, that will pay off in creating a true multi-win scenario for you, your buyer, your customers and your team.
You Don’t Have To Go It Alone: How To Find A Mentor As A Freelancer
Need a mentor but don’t know where to start? These tips can help you find your perfect mentorship match.
As a freelancer, having enough time to not only grow your business, but also grow your career can be challenging. Who can you turn to for guidance when you’re the boss? For those who strike out on their own, putting time and effort into finding a mentor (or several) can make a huge difference in establishing a successful freelance business.
Among small business owners who have professional mentors, the five-year survival rate for their businesses is 70 percent, according to a survey by BCSG; among those who don’t have mentors, the five-year survival rate is half of that.
Now that you’re settled into the new year, it’s the perfect time to reach out to your network (or establish a new one) and find a group of mentors. Here are some tips for identifying those who can help you achieve your personal and professional goals.
Evaluate your strengths and weaknesses
As a freelancer, it can be challenging to find the time to step back and examine your professional strengths and weaknesses. While it can be tempting to rely on a mentor to give you guidance on where you need to improve, you’ll get much more out of any mentorship relationship if you’ve done some self-reflection first.
Both will provide you with a detailed explanation of your personality, including analysis about workplace habits, relationships and ideal career paths. The results will help you understand how you interact with clients and colleagues, as well as what types of careers and working styles are likely to be a good fit for you.
If you need more help determining your working style or how to achieve the next step in your career, a career coach could be a great investment. Finding the right coach can help you develop a strong understanding of your own personality and work style. Once you know more about yourself, you’ll be able to better identify mentors who can help you play to your strengths and improve upon your weaknesses.
Form relationships through networking groups
Once you’ve had time to reflect on your professional needs, it’s time to find a mentor. As a good first step, look into virtual and in-person networking groups where you can meet people in your industry.
Networking groups and programs, like Entrepreneurs’ Organization, allow you to connect with other freelancers and business owners so you can learn from what they’ve experienced over the course of their careers.
This can help you find a mentor who’s also gone through the challenges of becoming a freelancer.
The location of your potential mentor can be a determining aspect as well. Having a mentor that lives close by gives you access to knowledge of the local trends and makes it easier to scheduling a quick chat. Meetup.com offers access to thousands of organisations around the world in sectors ranging from outdoors and adventure to fashion and tech to writing. If one event looks interesting, take the time to attend and talk to the other participants. One (or more) may have helpful insights for your career.
Keep in touch with former colleagues and associates
Just because you’ve decided to strike out on your own doesn’t mean you can’t still rely on former coworkers, bosses or other working relationships that you developed before becoming a freelancer.
Those you’ve worked with in the past are already familiar with your working style and approach to business, which is helpful context for any mentor/mentee relationship.
Make sure to keep in regular contact with former colleagues, especially those you admired when you worked together, so that you can use each other as a resource for professional questions or opportunities. Haven’t been in touch for a while? Reaching out can be as simple as sending your congratulations about a new job or reminiscing about an old work memory, but it can go a long way toward helping secure a valuable mentor.
Seek out people who inspire you outside your professional realm
Inspiring mentors can come from unexpected places, not just your professional bubble or your fellow freelancers. Take a few minutes to research interesting organisations in your local area, perhaps through volunteering, and get involved where you can.
Other volunteers might come from unique backgrounds and work in different fields or industries, so their points of view can provide you with unexpected perspective that may help you think about a challenge or client differently. A mentor from a different field has a unique opportunity to see your business from the outside and won’t be bogged down by conventional solutions.
Finding a mentor is one of the most valuable investments you can make for your future as a freelancer and for your personal work enjoyment.
Mentorship makes a difference all the way to the top – 71 percent of CEOs said having a mentor directly improved their company’s performance according to a study in a book by Suzanne de Janasz and Maury Peiperl.
Beyond the financial returns you can see from mentorship, having advisors you trust can make freelancing feel less overwhelming and more rewarding. So, make sure to put yourself out there and start building your mentor relationships.
This article was originally posted here on Entrepreneur.com.
A World Of Opportunity Awaits With Peli Peli
Business ownership has always been the entrepreneur’s way of shaping their future. If you’ve always wanted to experience life in the US, this is your chance.
Global media has been reporting that the chances of non-American citizens being granted access to move to the US are getting slimmer with the new administration. However, there is still one channel of access that allows people the opportunity to relocate that hasn’t been amended by the presidency.
The EB-5 Visa programme was created by Congress in 1990 to stimulate the US economy through job creation and capital investment by foreign investors. Under a programme initially enacted as a pilot in 1992, and regularly re-authorised since then, investors may also qualify for EB-5 classification by investing through regional centres designated by USCIS based on proposals for promoting economic growth.
The question most commonly asked by foreign investors is where to start selecting a relatively low-risk company to invest their money into. One such entity that has been granted designation under the EB-5 programme is the restaurant group Peli Peli.
Peli Peli is a South African cuisine restaurant that has gained incredible traction in the competitive American restaurant industry. They currently have six successful branches opened in the Texas area. Peli Peli Vintage park, which opened in 2009, generated revenue of $5,3 million in 2016.
Peli Peli Galleria opened in 2015, and had $5,2 million revenue in 2016. Peli Peli Kitchen, their first fast casual concept, opened in October 2016 and reported revenue of $2 million in 2017. Peli Deli, a downtown fast food casual lunch concept and Peli Peli Cinco Ranch, which opened in February and July 2017, respectively, are both showing incredible growth to match their predecessors.
At least two more locations will be opening in 2018, and as all new Peli Peli locations have historically generated positive cash flow within the first year, the company expects to increase its revenue exponentially.
The power team behind the brand
The restaurant chain has garnered popularity, and won a multitude of awards, including Best Service & Best Atmosphere — Readers’ Choice Award (Houston Press) and 2013 Diners’ Choice Award winner for the Top 100 American Fare Restaurants in the United States (OpenTable). Peli Peli is also rated in the top ten in Houston, Texas (which boasts over 12 000 restaurants) on both Tripadvisor and Yelp.
The Peli Peli trio who own the business are Chef Paul Friedman, Thomas Nguyen and Aiki Tran. These three dynamic businessmen have their own share of accolades to speak of. Chef Paul, who is a born and bred Joburger, has been a contestant on Cutthroat Kitchen for multiple episodes on the Food Network. He won the People’s Choice Award and was placed third as a judge in the Gumbo Smackdown 2014. He received the 2013 Chef of Chef Awards in the 9th Annual Houston Wine and Food week, as well as being the 2013 Cadillac Culinary Master. He was also one of 60 Houston Chefs to be listed in the book Best Chefs America.
Thomas Nguyen, who is Chief of Marketing for Peli Peli, graduated from the University of Texas School of Law and was a former litigation attorney. He was the Houston Business Journal’s 40 under 40 award recipient in 2015 and an EY Entrepreneur of the Year Gulf Coast finalist in 2016 and 2017. He was Entrepreneur of the Year — Houston Asian Chamber of Commerce and is also a freelance writer for the Houston Press.
Peli Peli’s CEO, Aiki Tran, has over 12 years of experience in restaurant technology and won the 2007 Entrepreneur of the Year award — Houston Asian Chamber of Commerce. He was responsible for streamlining the technology infrastructure for franchises such as Popeyes and Wings, Pizza N Things. He also became the number one reseller of Aldelo and Dineware POS systems in Texas, with installations in over 200 restaurants.
Joining their ranks is South African Ryan Stewart. Having owned 16 restaurants throughout the country, he is also the CEO and co-founder of the Mozambik restaurant chain. Ryan has 17 years’ experience in the industry and is being brought on board by Peli Peli to assist in their revenue and store location growth.
Your path to the US
With the combined talent, brainpower and experience of these four businessmen, it’s no wonder Peli Peli is achieving success. The investment required to qualify for an EB-5 Visa through Peli Peli is an amount of $500 000 and is structured as an equity investment at risk. It entitles the foreign investor to permanent residency, and within two years of living in the United States, a green card for the investor and his/her dependents.
For more information on how
You can be a part of the EB-5 Visa programme through Peli Peli.
4 Ways To Find Your Own Business Style
The only way to develop a business style is step-by-step over time.
Finding a style in finance will define how you react to changes and how you approach new situations. It’s as important in business as it is in stock trading. Developing a business style and developing a stock trading system are extremely similar pursuits.
But I’m not going to pretend that it’s easy to do. It will take time and you do have to be willing to work at it.
Here are my four ways of finding your own business style.
1. Get rid of your expectations
You can’t force anything to work. It’s necessary for you to be flexible when it comes to finding a business style. Begin by letting go of any expectations you have before trying a new style.
Prior to attempting a new style, you have to be willing to go into it with no expectations. You never know what you’re going to find.
2. Track your movements
Some things are going to work and some things aren’t going to work. I always tell my students in the Tim Sykes Millionaire Challenge that they should keep records of the things they’re doing. Keep these records as detailed as possible because attempting trial and error can quickly lead you in circles.
Don’t fall into the trap (as I did in the beginning) of trying the same thing multiple times because you never tracked the results.
I keep large spreadsheets with notes of the various styles and systems I’ve tried in business. Business mistakes can be costly, so you need to do everything you can to avoid making them.
3. Look at what others are doing
I refuse to believe that someone is doing something truly unique. The moment someone makes a breakthrough in business there are a hundred people replicating the same things. And that can be a powerful tool. Consider what others are doing and see whether you can learn something.
It’s why I also advocate finding a mentor to help you out. They’ll be able to help you out and you’ll benefit from their enhanced experiences in business.
Again, track what you’re taking from other people so you know whether something is working.
4. Refine what you do
Rarely will anything in business work the first time. However, your first attempts will give you a good benchmark as to what you need to do next.
You should never be satisfied with what you have, even if it’s working. Always work on improving your business style. I believe this is the most important thing because it also teaches you how to adapt to changing conditions over time.
Last Word – Constantly Growing
There’s no step-by-step guide for how to develop a business style. The only way to do it is to obey the fundamentals and then develop everything over time.
Even though the process is long, you’re guaranteed to learn a lot of lessons and gain from a huge number of experiences over time.
This article was originally posted here on Entrepreneur.com.
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