Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “How do I Build the Machine to Work ON My Business vs. IN the Business?”. #business #entrepreneurship #startbusiness https://t.co/aBk2LgMBdE
— Freedom Factory (@FreedomFactory7) March 30, 2020
Robert Hirsch from Freedom Factory talks about how to build the machine to work ON your business versus how to build the machine to work IN the business. Freedom Factory is the world’s best business broker helping entrepreneurs sell their business for maximum value. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/ Do you want to sell your business? Contact Freedom Factory for a business appraisal. Contact: Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. What is Entrepreneurial Freedom https://youtu.be/ziY-Jgbj1Yc What Does Freedom Mean to me to Sell my Business? https://youtu.be/jju89Hj1_8Q Strategies for Getting Your Company Ready to Sell https://youtu.be/ct7rH4cPrvM Should I Hire a Consultant or a Business Broker to Sell My Business? https://youtu.be/y-VoHLY-iwM #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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Robert Hirsch from Freedom Factory, discusses whether you Should Hire a Consultant or a Business Broker to Sell Your Business? #entrepreneurs #broker #consultant https://t.co/3mgGkDEFrT
— Freedom Factory (@FreedomFactory7) March 25, 2020
Selling a business can be done in different ways. You could sell it on your own, hire a consultant, or a business broker. Each option has its pros and cons. Determining what type of industry you are in, how soon you want to sell your business, and how much you want to sell it play an important role in your choice. Watch the video to find out which one best suits your situation and which one can help you sell your business at a maximum value. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/should-i-hire-a-consultant-or-a-business-broker-to-sell-my-business Contact: Freedom Factory 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258) https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. Grow a Business or Buy a Business? https://youtu.be/tRnGER_zV1Q What is the Process to Sell My Business Quickly? https://youtu.be/PQ6HGRr2Ig8 How do I Leverage Other Peoples’ Money For Buying a Business? https://youtu.be/bTPAvu5g_OE Don’t Make The Single Biggest Mistake When Selling Your Business https://youtu.be/J_6rXGD7LOw #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-has-been-helping-entrepreneurs-sell-their-business-for-maximum-value/
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Today’s episode of the podcast, Robert Hirsch from freedom factory talks about What How do I Connect to My Purpose with My Business? Listen to the podcast. https://t.co/OntPtx36wx
— Freedom Factory (@FreedomFactory7) March 23, 2020
Robert Hirsch from Freedom Factory discusses ‘How do I Connect to My Purpose with My Business’.
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
How To Prepare My Business To Sell
What Type Of Contract Do I Need To Sell My Business?
Transcript of Podcast
Hi Robert Hirsch again, and I want to talk to you about something, which is a question that we get a lot, which is small business consultants. Should I hire them? Do I hire them before selling? And I must admit I’ve got a bit of a conflict on this. I was a consultant for a long time, both a management consultant as well as liquidity consultant.
So, just understand my bias before we get too far into it. So a lot of consultants have relevant experience, but what very few consultants have relevant experience in is selling their business. What hasn’t worked well that I’ve seen in the past is when someone has a general advisor and they’re giving them general information, which may or may not help the valuation.
And usually in that handoff is where we lose a lot of value, meaning the advisor gives the advice, the company implements it, but it doesn’t make any difference in valuation. So if I was to hire a liquidity consultant, I would make sure that they sell businesses full time and don’t do anything else. I would make sure that they’re a licensed broker and I’d make sure that they can take you from consulting before you take it on the market all the way through a successful sale. And so I would find a licensed broker and be able to do that.
The other thing that I think is pretty critical is I would make sure that someone speaks your language. For example, I’ve seen a lot of miscommunication when an entrepreneur tries to work with a banker and they find out that entrepreneurs don’t speak bankers and bankers sure don’t speak entrepreneur. So find a broker that is an experienced entrepreneur that’s been doing it for a long time, that speaks your language and that’s going to give you the best results, which is going to maximize your sales price.
Now, if you have questions on this or anything like it, feel free to reach out to us at Freedom Factory and we’ll see you soon.
Thank you so much for watching. Please like and subscribe.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business Brokers - video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch.
Entrepreneurs make money by selling products or services to customers. What differentiates a successful business person from an unsuccessful one is his ability to connect his purpose to the business. Great business people use business as a Trojan horse to their goal. That way, the company becomes not just a source of income but a source of inspiration and motivation. If your business doesn’t connect to your business, then you must watch this video. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/how-do-i-connect-to-my-purpose-with-my-business Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/freedomfactory Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal https://soundcloud.com/tylertysdal https://www.facebook.com/tylertysdals
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Robert Hirsch discusses The Secrets of Selling Your Business for Maximum Value. Listen to the podcast or watch the video here https://t.co/cjfV0s4X0p #business #entrepreneurs #sellyourbusiness https://t.co/dZnnVbHRyK
— Freedom Factory (@FreedomFactory7) March 20, 2020
How do you sell your business for maximum value? Robert Hirsch from Freedom Factory, discusses the Secrets of Selling Your Business for Maximum Value".
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
What Are the Types of Business Buyers?
Seller Beware! The Big Reasons Deals Don’t Close
Transcript of Podcast
What are the Secrets of Selling Your Business for Maximum Value?
Hi, it’s Robert Hirsch from Freedom Factory. And I wanted to talk to you about a really important subject. And these are really the secrets of selling a business for maximum value. And so, at Freedom Factory, we do a lot of the work for you in terms of what it takes to be able to sell your business.
And we have a great partnership, and I’ll get into that in a little bit, but more than anything else what we do is help you craft your best story, and when you’re crafting a story, it needs to make sense to buyers. It needs to make sense on why you’re selling, why you started it, why the business has grown.
What are your sustainable competitive advantages or your key differentiators in the marketplace? Some people call that unique selling proposition, but we need to create a story that answers more questions than it creates. When you create stories buyers hit the brakes and it slows down. As we’ve talked about a lot, time kills all deals. So it’s really working with the right broker that’s going to help you craft that story. Also, when you’re selling your business, be super authentic and true to who you are. We’re in my backyard now in the mountains of Colorado, and it is a gorgeous, yet slightly chilly all day. I was up here and we’re thinking about it. I’m answering these emails and I’m like, . Why don’t I just go outside and shoot a video and I’m not in the office. I put on a sport coat because it was cold. But I get to authentically be myself. And when you’re authentically yourself, people can feel it and hopefully you feel that now.
And when you’re selling your business, we want to make sure your buyers feel that. That’s unbelievably important. And so I often talk about when you pick a broker, it’s a partnership. You need to make sure the business is going. The number one reason that deals fall apart is because something changes. Your sales drop off a cliff. You don’t hit your projections, et cetera, et cetera, et cetera.
You want to make sure that every time you give a buyer a set of projections, you need to have an already hit. I speak virtually, but you want to make sure that you’re going to hit it otherwise, just be a little less optimistic. But we want to create a track record of success with our buyers where we systematically exceed their expectations. I’ve had sellers tell me at the end, they say, Robert, this is my best sales month ever. Do I really want to sell it? And I’m like, Huey, this is exactly the time to sell it. You’re on a high, you’re on the home stretch, you’re selling it for maximum value. And this is just making the buyer feel more comfortable with their decision.
And not only are you getting paid once, but you’re getting paid once, plus your multiple, right?
So if you sell it once, you get the money from that. If you sell it on a four times multiple, you’re actually making five times that. It’s great. These are the best problems to have. When you have a business broker, you want to make sure that you find the best one that’s going to be able to drive the most value. We’ve taken businesses and been able to reposition them. We’ve been able to recast their financials. We’ve been able to literally over triple the selling price of the business to what they expected coming in from their EBIDTA.
This is really different than a realtor or a broker for real estate. Ultimately when you’re selling real estate, you’re limited by the appraisal value. So even if you have the greatest broker in the world, it’s not going to make that much of a difference compared to at an average broker, maybe five or 10% but when you’re talking about doubling or tripling your price, you need to take all the information that’s available to you. Put it together. Find the right partner, and then go to market together.
The broker, he or she is going to be selling your business. And that’s all we do here at Freedom Factory. You the entrepreneur, are going to be running your business and making sure that we stick the landing to drive it through to a successful completion. If you have questions on this or anything like it, why don’t you give us a call here at Freedom Factory? We’d love to talk to you about it. I’m Robert Hirsch. Thank you so much for spending your valuable time with us and we’ll talk to you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business Brokers- video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch.
More information about Tyler Tysdal
How do you sell your business for maximum value? For someone selling a business, your goal is to sell it at a maximum price possible. Unfortunately, not all businessman who sells their business sells it for the highest price because many factors can make or break the deal. There are secrets to maximizing your company’s value when selling, and that’s what you’ll learn in this video. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/ Download the podcast here http://freedomfactory.libsyn.com/what-are-the-secrets-of-selling-your-business-for-maximum-value Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://tytysdal.com
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Overall, the process of successfully selling a firm is different for every company owner. Industries may experience lessens as well as streams, business designs might succeed and also subside. Eventually, the marketing tactics that helped me might not for another business-- particularly relying on the kind of firm and the existing market.
Track profits and also losses, and keep arranged booksTrain workers to work effectively without youUnderstand when could be a great time to sellLearn just how to bargain wellLearn exactly how to bid farewell to your companyAnd those elements will be the secret to uncovering the ideal customer that can take your brand name to an also greater level of success.
With the recent upward financial fad and also reduced rate of interest, numerous small organisations are started to bring in rate of interest from prospective purchasers. Actually, BizBuySell Understanding Record found that 10,312 in 2018-- which was a document number for the 3rd straight year. is just one of the most effective ways for companies to get in a brand-new market or increase their market share.
Timing is one of one of the most important variables to maximize the return of any financial investment. Bitcoin trading highlights this point perfectly. Bitcoin hit its document high of $19,783.21 on December 17, 2017, and also is currently trading under $4,000. Individuals that didn't utilize on the top are left wanting they had.
Current economic trends have actually made it a positive time for most companies to sell-- so now goes to least a great time to consider it. If you still like your work as well as feel fulfilled everyday, there isn't a factor to step far from your business. Normally, local business owner should aim to sell since they intend to make a way of living or specialist adjustment.
Business proprietors, specifically ones who have actually had the company for several years, usually struggle to adjust to life after the sale. Be ready to respond to straightforward concerns to yourself as well as do not hesitate of self-contemplation. sell my business broker. Among the greatest blunders business owners make when offering their firm is that they miscalculate or undervalue their business.
While possible buyers can challenge things like market share as well as goodwill, they can't argue with your financial numbers-- that makes your recordkeeping so crucial. Your earnings statement reveals the gross earnings, general expenses (OPEX), price of products offered (GEARS), and also profits as well as losses of your business. Prospective buyers will certainly use the revenue declaration to identify exactly how rewarding your business is, and they'll utilize a sector multiplier to identify their own valuation.
Prospective purchasers will certainly assess your operating, investing, and also funding cash flow and also will certainly look at exactly how your business handles functioning funding month over month. The annual report shows prospective customers a review of your business's properties like tools, land, inventory and also accounts receivable. It also reveals your liabilities like financial debts, finances or various other payables.
Possible customers will certainly wish to see three years of tax returns to confirm the numbers in your various other monetary records. Additionally, they wish to see to it that they are acquiring a business that is in great standing with the Internal Revenue Service. The SDE (proprietor's capital declaration) is a business valuation method that revamps the income statement to show the complete earning potential of your business.
Running a successful tiny business is a challenging yet satisfying experience. Making a decision to finish that trip by offering your business can be a challenging option. The procedure of marketing a business is laborious and also challenging, however when it's all claimed as well as done, you'll be richer-- figuratively and actually.
You have been developing your business that you've put a lot of time, initiative, and also sweat equity into growing, and also now you're looking to sell - i want to sell my business. Your purpose is to obtain optimal value, and also you're assessing actions to plan for the sale. There are a wide range of variables to think about and also in this blog post, we'll cover them all to assist you optimize the cost you obtain when selling your business.
Nevertheless, there are some usual questions to take into consideration, including: What are the sales? What is the revenue? What are the development patterns? What is driving new sales and also is that sustainable? What channels do new consumers come from and what is the failure of each channel? What is your market placement? Just how reliant is the business on the proprietor? What systems as well as processes are in location to run the business? Part of the appraisal procedure is checking out historic sales of comparable services as well as comparing your business to those. sell my business online.
The multiple of profits technique determines what the web revenue of a company was for the last 12 months and afterwards multiples that by a number in between 1-4. Smaller sized business sell in the 1-2X multiple variety, medium in the 2-3X several array as well as large in the 3-4X numerous range. For instance you have a transportation business in Dallas Texas that makes $500,000 revenue per year for the owner.
The quantity a purchaser is willing to pay for your business will all come down to 2 things, return-on-investment (ROI) and loved one threat. The reduced the danger, the greater the price and vice-versa. With that being claimed, what truly makes your business worth more is mitigating the risk of the business failing in the future by having the adhering to qualities connected with your business: Foreseeable vital chauffeurs of brand-new sales Stable or expanding consumers from diversified sources Established distributors of inventory with back-up vendors in place High percentage of repeat sales Tidy legal background Brand name without trademark, copyright or legal worries Recorded systems as well as processes Development prospective There is never the 'excellent time' to sell your business.
However for the extent of this post the ideal time to sell your business is when there has been sustainable development. Development is tracked in annual increments. Allow's take the adhering to instance: Year 1 Earnings - $280,000 Year 2 Revenue - $465,000 Year 3 Revenue - $780,000 Year 4 Earnings - $690,000 In the above example, the best time to sell would have been late in year 3.
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What Contract Structure Should I Use to Sell My BusinessThis can substantially affect the deals you receive. Commons reasons we locate owners offering their business:-- Do not we all wish to be sipping Pina Coladas?-- An additional business owner intends to service another thing-- You have actually expanded the business to the size your ability enables-- You are overworked-- You have another financial investment that you intend to capitalize on-- Often life situations come up and you require some money The selling procedure of just how to sell a business is rather uncomplicated but can be extra intricate and also take even more time relying on the size of the business.
Normally though, larger bargains (over $1 million) will certainly take longer to sell than smaller deals (under $200k) due to the fact that of the intricacy of the business and also the threat that a buyer is taking. Market reports say the ordinary time to sell a business is 10 months. They are a lot of possible buyers on the market for businesses (sell my business online).
They normally are a high paid worker or C-level executive with disposable money, Individual Retirement Account, savings or accessibility to an SBA car loan.-- Individuals that have actually remained in the sector for a while as well as have an excellent understanding as to what it requires to run a business. They are either fresh off the sale of their last business or seeking to add a business to their portfolio - sell my business.
Normally, personal equity companies acquisition bigger services. Material reviewed is meant for basic image and/or educational functions only as well as it is not to be interpreted as tax, lawful, or investment advice. Although the details has actually been gathered from sources believed to be trustworthy, please note that individual situations can vary consequently, the info needs to be trusted when collaborated with individual professional guidance.
I placed my business on BizBuySell and also had 7 appointments the initial week and also participated in contract by week 3. I had fantastic outcomes from the site and also it saved me thousands. Daniel & Jenny RamirezChino, CA I noted my business with BizBuySell as well as I had the ability to obtain $45,000 greater than recommended.
How can you leverage other people’s money for buying a business? Robert Hirsch from Freedom Factory discusses frequently asked questions by business owners, and people who want to start a business. #business #entrepreneurship #startbusiness https://t.co/zCXeC5RVp1
— Freedom Factory (@FreedomFactory7) March 18, 2020
Robert Hirsch from Freedom Factory discusses ‘How To Leverage On Other Peoples’ Money for Buying a Business’.
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
Can I Sell My Business By Myself or do I Need Help?
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Transcript of Podcast
Hey everybody, Robert Hirsch from Freedom Factory here, and I want to answer a question that we get a lot, which is, how do I pay for a business. Now after doing this almost exclusively for 20 years, all you do is see these deals go through. And what looks normal to me is really different to a lot of my fellow entrepreneurs.
And so I was with a group of entrepreneurs speaking to them last night. And what they told me is they said, Robert, I don’t have 2 million sitting around to buy a business, you know, maybe a private equity guys or venture capital guys, or more successful entrepreneurs. But that’s not me. And I thought about it and I gave a little bit of a chuckle and I realized that they’re probably not the only entrepreneurs that think this. And so I wanted to talk about different ways to pay for a business. So there’s a couple ones that are pretty interesting. You can do it either through equity or through debt. Right?
So let’s start with equity. So equity, you can put together an investor round to acquire a company. You can secure it by the business. For me, I do better with just a few investors, not a lot of little ones - the friends and family. And that can be nice for smaller things.
But for me, I like one or two sophisticated investors if I’m going to raise an equity round. But the reality is, I think for most businesses this size, I liked debt for in 90% of applications, and we can talk about what the difference looks like in a little bit.
So there are different types of debt. My favorite kind of debt when I’m buying a business is seller financing. So if the seller is selling a great business, and you’ve probably seen some videos of mine talking about the difference between you’d rather buy a great business at a good price and a good business at a great price. So if you’re selling a great business and the seller is confident in their business, they’ll be happy to take a note on it.
Sometimes it’s as little as 10 or 20% when you’re trying to bridge the gap. Sometimes it’s as much as 90%. I’ve seen 90% solid carry just secured by the business, and if you’re not successful, the business goes right back to them and they like their business. So they’re happy to do that.
There’s also bankers, but it’s so funny, the old Axiom about bankers wanting to lend you money, when you don’t need it, and don’t lend you money when you need it. In my experience, that’s been true. If you’ve got a successful business, the lending of money on it, but they’re going to want you to collateralize it with your other business in most circumstances.
So bankers are there, and if you’ve got a great banking relationship, maybe it works out well. But what I’ve seen work out the best is small business loans or SBA loans, small business administration loans. And you can do it as with as little as 10% down. So if you’re buying, let’s say you’re buying a business three X and it’s 2 million, that means it throws 666,000 a year in free cash flow.
And if you can buy that for $200,000 you look at stock valuations and things along those lines, but when you’re buying a business at three X and you’re putting 10% down, as an entrepreneur, I can’t think of a better deal than that. An SBA loans had their own restrictions. You have to put a personal guarantee on it. I think they cap it at $5 million currently. We can talk you through all the complexities of what that looks like, but SBA loans are great. And then, the big thing in terms of the plan that you put together is talk about your stupid human trick or the one thing you do better than anybody else.
I’ve talked about it many times in the past and I’m pretty good at sales and marketing. That’s all I do. All I do is sell businesses. And if I look at a business that has a superior quality product but a sales problem, well that’s a great fit for me because I can fix it like that. Or maybe you’re a software engineer from MIT and you can build great software programs and you’ve got this business is on fire, but your software program is held together with duct tape and bubblegum. Well, you can come in and solve that problem right away. So when I buy a business, I try and be strategic about buying a business that fits my skillset.
And remember, when you’re buying a business, you don’t have to have $2 million to write a big check. And sometimes ironically, buying a business is cheaper than building it yourself. If you’re buying 666,000 and free cash flow for 200,000 I would have a hard time building it for that. So I hope this stimulated your creativity.
If you have any questions about that, why don’t you give us a call up, freedom factory or anything else and we’ll be happy to walk you through it. I’m Robert Hirsch. Thank you so much for watching. Please like and subscribe and we’ll see you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business Brokers - video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal, and Robert Hirsch.
Tyler Tivis Tysdal
Tyler Tysdal Lone Tree - SEC Press
Tyler Tysdal Managing Parter Freedom Factory
Robert Hirsch discusses Key Difference Between Owning a Business and Owning a Job. Watch the video, listen to the podcast https://t.co/cjfV0s4X0p
— Freedom Factory (@FreedomFactory7) March 16, 2020
@entrepreneurship #business #jobs https://t.co/MjxfZFWGVW
Tyler T Tysdal Lone Tree - Settlement Press
Do you own a job or a business? Many entrepreneurs don’t recognize the difference between the two. If you are a businessman, it is essential to know how your company performs if you’re physically there and if you’re not.
That way, you can find out if your business continues to profit or not. There’s a litmus test to find out if what you have right now is really a business or just a job.
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
Strategies for Getting Your Company Ready to Sell
How are Brokers Different from Investment Bankers?
Transcript of Podcast
Hi, Robert Hirsch here from Freedom Factory, and one of the most frequent questions we get is, can I sell my business? And the answer is always yes. It just depends on what’s the price. And if you own a job, it’s very difficult to sell. And the multiple is usually one or less. And if you don’t know whether you own a job or you own a business, there’s a really easy litmus test to find out.
Just don’t show up for a few weeks. If your income stays the same or goes up, you’re on a business. If it goes down, you own a job.
The good news is there’s a lot of value to be created by taking people that own jobs and transition to them, to people that own businesses. And what I mean by someone that owns a business or a business that holds its shape, if you will, when you’re not there, when you’re not the primary entrepreneur, you have systems and processes and employees and team that makes sure that you generate as much value as you can. So let’s jump into that. Let’s jump into what that looks like. So again, if you’re not sure if you own a business or you own a job, just don’t show up for a couple of weeks. If your income stays the same or goes up, you own a business. If it’s lower, you own a job.
The good news. If you own a job, you can transition it to a business pretty easily. What you want to do is build your operations manual, your systems, your processes, and your team to get yourself out of the traditional workflow. So you’re working on your business and not in it. If you need any help with processes like this, just give us a call at Freedom Factory. Thank you so much for watching. Please hit like and subscribe and we’ll see you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
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“Seller Beware! The Big Reasons Deals Don’t Close”. Listen to Robert Hirsch from Freedom Factory or watch the video https://t.co/cjfV0s4X0p #selling #closing #brokers https://t.co/tHQMgz5myX
— Freedom Factory (@FreedomFactory7) March 13, 2020
Today’s episode of the podcast, Robert Hirsch from Freedom Factory “Seller Beware! The Big Reasons Deals Don’t Close”
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
When is the Right Time to Sell My Business?
Transcript of Podcast
Hi everybody. This is Robert from Freedom Factory and I want to talk to you about it a pretty serious topic today, and it’s the biggest reason that deals don’t close. Now, personally, my close rate on deals has been really strong over the last 10 or 15 years, but I see a lot of people, you know, the industry standard, they close less than 50% of deals.
So, it’s almost unbelievable when you think 50% of people that agree to pay a price for a business don’t actually buy it. And I want to jump into why that is, and more importantly, how can you can make sure that doesn’t happen to you. So first of all, when the biggest reason that I see that deals don’t close is usually when the numbers drop off a cliff.
And the reason that happens is because the entrepreneur is trying to do too much. So as running a business as an entrepreneur takes a lot of work, and when we sell a business, we’re partners for a short period of time. I talk a lot about our 147-day selling process and a lot of times it works in that time. Sometimes it takes a little bit longer, sometimes or even faster. But the number one thing when we’re selling your business is to let us do our job as you have to do your job and make sure the numbers are still going on the same trend line that they were. If you’re growing at 3% a month. The this time can be the absolute most important time for you to do it. Not only because you get paid the best. What that means, for example, let’s say, you’re selling your business on earnings and you’re getting a multiple of five times earnings. When you sell it, you’re actually getting paid six times on every sale you ever make, which means you’re getting paid once in the cash and five times you’re earning is when you sell it.
Now, if you were making six times your usual value when you sell a business, do you think you would sell harder? I sure would. And having the right broker and the right partner to be able to sell it for you, we’re going to handle the process. We’re going to handle the phone calls. We’re going to handle the Q and a, the diligence.
We’re going to prequalify your buyers. We’re going to take all that off of your plate. In fact, until the buyers had been prequalified, and we have an LOI on the table, we don’t even put them on the phone with you. We want to preserve your time as much as you can so you can run your business as profitably as we can, and we can do our job.
And again, what we do at Freedom Factory is make sure to build as much deal tension as we can. So that’s getting the most people introduced to the business, either through a combination of inbound or outbound and marketing materials going through a Q and A process and getting all the buyers to go to our process, meaning the sellers process.
We do Q and A here. We do prequalification here; we do LOI’s here. We start to go through and we get the funnel and we find the perfect buyer and the perfect fit for you. Bottom line is the partnership’s pretty simple - for the next year, you run your business, we focus on selling your business.
When you’re talking to a broker, you’re making the right decision. Try and find somebody that’s not just a sales guy or just sells businesses for a living. Find a career entrepreneur; someone that speaks entrepreneur, somebody that understands that. Just because you’ve built the business and got it to here doesn’t mean that you want to run it for the rest of your life.
Sometimes as entrepreneurs, I look at us as the producers or the builders or the contributors, and, and if I’m not on point and on passion in my business, you can feel it. And it’s not the same thing. And so if you’re an entrepreneur that has a business that you’re no longer passionate about, just because you took the train to Chicago, doesn’t mean you want to drag the train around with you once you get there. Give us a call and we’ll be able to help figure out the best way for you to transition to something you are passionate about so you can build massive, massive value.
One other truth is that time kills all deals. And every deal goes sideways. We have buyer’s remorse. People often talk about it’s the house as the biggest purchase you ever going to make. Well, that’s not true if you’re buying or selling a business. Often for me, buying and selling a business is the biggest purchase, or is the biggest purchase or sale that my clients are ever going to make.
And the more time you have, more likely the buyer is to have a little bit of buyer’s remorse. Or if one little thing goes wrong, maybe they latch onto that, we have a bad month or bad week, and they use that as an example of why the business isn’t as good as they thought they would. So at the best-case scenario, they’re going to try and buy it for a little less of a price, which isn’t going to feel good to you, the seller, or to me, the broker. And the worst-case scenario is they just back off and they go dark and they don’t want to do it and they pull it out of escrow, and then we have to begin the process all over again.
So again, when you, when you look at these types of things, what I’ve found in 20 years of doing this is every deal is going to go sideways at least once. And that’s where my experience comes into play. That’s where we can get it through. I’ve seen deals go sideways for every reason you can think of yet I still get surprised and see new deals go sideways all the time. We’ll get you through it. We’ll keep a smooth, steady hand. You keep running the business and keep the fundamentals going up and up and up, and we’re going to sell your business for more than anybody else in the marketplace.
Now, if you have any questions on selling your business, why deals go sideways or what the process looks like. Why don’t you give us a call at freedom factory? We’ll talk you through that and any other questions that you might have. Thank you so much for watching. Please like and subscribe and we’ll see you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
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A seller’s goal is to close the deal the soonest time possible. Great deals are a win-win situation for both the buyer and the seller. However, selling a business is not always a smooth sailing process. There are factors that cause the deal not to push through. As a seller, it is a must to know what these reasons are and avoid them as much as possible. It only takes a single mistake to break the entire deal. Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/ Additional Videos to learn how to sell your business. How to Prepare to sell my business https://youtu.be/QcopYCyuNUc When is the Right Time to Sell My Business? https://youtu.be/0u_igdleG98 #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Additional information on managing partner Tyler Tysdal https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/
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Robert Hirsch from Freedom Factory talks about whether you should ‘Grow a Business or Buy a Business’. Watch the video, listen to the podcast, or read the transcript. #entrepreneurship #sellyourbusiness #growth https://t.co/94zIRYEKq3
— Freedom Factory (@FreedomFactory7) March 11, 2020
Robert Hirsch from Freedom Factory talks about whether you should ‘Grow a Business or Buy a Business’.
Listen to the podcast, watch the video, or read the transcript below.
Additional Videos From Freedom Factory
What is Entrepreneurial Freedom?
What is Your Stupid Human Trick?
Transcript of Podcast
Hi Robert Hirsch from Freedom Factory, and I want to talk to you about something that’s pretty important for an entrepreneur. And frankly, I don’t think most entrepreneurs consider, which is when they want to grow their company, do you want to build it or do you want to buy it or growth by acquisition.
Now, historically, a lot of entrepreneurs haven’t really considered it, and the reason for that is that buying and selling small businesses has been a pretty inefficient asset class. It’s hard to find the right one. It’s hard to find a real one. It’s hard to know what business you’re in. Not a lot of brokers really disclose a lot of meaningful information and unless you’re applying EBITDA of 5 million or more, you don’t necessarily view it that way.
But I’m here to tell you that that’s not necessarily the case anymore. Money is made on the buy and you want to, you want to find something at a fair valuation. Warren buffet said it, I think best. He said, I’d rather have a great business at a good price than a good business at a great price.
I think what he means by that is an exceptional business with this sustainable competitive advantage will always be worth more than an average business. Again, when you’re looking at it, you’re trying to think, okay, how do I find a great business at a fair price? So at Freedom Factory, we really specialize in selling great businesses. If you can find a great business at a good price, it can make a ton of sense. There’s two other points of leverage that you might want to consider. One is if you have a complementary product set or a complimentary customer set. And what I mean by that, let’s say you sell phones and you’re looking at buying the headset company, or buying headsets to would plug right into your phones. Your existing customers would be interested in it. And if you could get a 10 20% take rate on that, you might be able to pay for your business in less than a year if you bought it at three, four or five times earnings.
The other thing which I talk about more in other videos is what I like to call your stupid human trick. Or really, that’s the one thing that you do better than anyone else. And everyone’s heard of the 80 20 principle, right? 20% of your work delivers 80% of your results. Well, when you get to an expert level at something, in my experience, it’s really turned into 95 -five. So 5% of my work delivers 95% of my results.
Now, that can really multiply your efficiency and efficacy in your business. And what I mean by that is if I could do that 5% 20 times, I could deliver 20 times the business results that I could otherwise. So let’s land the plane and talk about exactly what I’m saying. So let’s say, for example, for me, my background is in sales and direct response marketing.
So if I can find an engineering company with a superior quality product that’s extraordinary, that has a sales problem, I can probably dramatically shift the line by focusing on fixing the sales and marketing problem, which comes really naturally to me, and allows me to make huge differences in your company.
So for example, we’ve had clients that have bought companies at four times earnings, and they’ve paid for itself in less than nine months because you use that stupid human trick to really dramatically shift the line on your business. Going back to build versus buy. I know it’s been an inefficient market class, but you don’t always have to build organically.
Money’s made on the buy. Look for great, great businesses. See if you can find businesses that are complimentary to yours. Maybe it’s a luggage company and you have a travel site. See if you can plug it into your existing customer set, or you can plug your products into their customer set.
And finally, as entrepreneurs, we all do a lot of great work on figuring out our stupid human trick. And there are a lot of tools for that - Kolby, Meyers Briggs, figuring out your profile and what that looks like. A lot of people like the enneagram model, but whatever you can do to sharpen and hone that edge of figuring out what you’re best at and making sure that you can leverage that in a business, can provide dramatic results and make buying a business really makes sense. If you have any questions on a great business for you or under stupid human trick, why don’t you give us a call it freedom factory? Thank you so much for watching.
Please like and subscribe and we’ll see you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111 Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business Brokers - video portfolio
Youtube Channel
Tyler Tysdal News
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Choosing to grow a business from the ground up or buy a business is something that shouldn’t be taken lightly. It needs critical thinking, analysis, and consideration of all important factors. If you have the skillset, knowledge, time, and capital, then you might want to consider starting your own business. On the other hand, buying a business seems a wiser decision, especially if the company is already established and has a huge market. All you have to do is to learn how the business works, especially the processes and tools, and you’ll be able to grow it further. Contact: Freedom Factory Phone: 844-MAX-VALUE (844-629-8258) 5500 Greenwood Plaza Blvd., Ste 230 Greenwood Village, CO 80111 https://www.freedomfactory.com/ https://g.page/freedom-factory-denver Also, Follow Freedom Factory here https://vimeopro.com/freedomfactory/business-brokers http://freedomfactory.libsyn.com https://twitter.com/FreedomFactory7 https://www.facebook.com/Freedom-Factory-112201923642080 https://www.linkedin.com/company/freedomfactory/ https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/ Additional Videos to learn how to sell your business. What is the single biggest mistake entrepreneurs make when selling their business? https://youtu.be/J_6rXGD7LOw What contract structure should you use to sell your business? https://youtu.be/spimuAbsLgw #freedomfactory #sellyourbusiness #businessbrokers Robert Hirsch - https://roberthirsch.com Tyler Tysdal SEC News https://boherald.com/tyler-tysdal-launches-freedom-factory-to-help-entrepreneurs-sell-their-business/
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Robert Hirsch from Freedom Factory talks about the 3 Ways to Maximize Your Company’s Value. Freedom Factory is the world’s best business broker helping entrepreneurs sell their business for maximum value. Visit Freedom Factory’s official website here: freedomfactory.com/
Do you want to sell your business? Contact Freedom Factory for a business appraisal.
Contact:
Freedom Factory
Phone: 844-MAX-VALUE (844-629-8258)
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
freedomfactory.com/
g.page/freedom-factory-denver
Also, Follow Freedom Factory here
vimeopro.com/freedomfactory/business-brokers
freedomfactory.libsyn.com
twitter.com/FreedomFactory7
facebook.com/Freedom-Factory-112201923642080
linkedin.com/company/freedomfactory/
youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch - roberthirsch.com
Additional information on managing partner Tyler Tysdal tylertysdal.com
