Business Education

Should I Sell My Business During the Downturn or Wait until the Economy Rebounds

If you run a successful business — and have for many years — it’s understandable that during such an uncertain time as there is now, you might consider just getting out. This is particularly true for individuals who’ve enjoyed a good amount of success but just don’t want to go through another cycle that again puts them emotionally through the wringer. However, because of all of that’s going on in the economy, with things largely down, is it best to sell now or wait until the economy recovers?

The Downsides of Selling During a Recession

That’s really the million-dollar question. Of course, a recession will naturally be a more tough environment in which to sell. There will be fewer buyers available as small business credit tightens and even larger organizations avoid potential risk. So, you’ll probably find it a bit challenging to find a suitable buyer.

The Great Recession ended in 2009 and impacted the lives of many. Now as the economy appears to be headed into another downturn, it’s a good time to review how to take advantage of the recession instead of letting it take advantage of you. —Investopedia

Then, there’s another fairly obvious factor — will your business bring the amount you expect? Put another way, can you sell it for the same amount or near the same amount you would be able to during normal economic times? Also, how do you effectively market your business in order to attract the right type of buyer? (This is where an experienced business consultant/coach would come in very handy.)

The Advantages of Selling During a Recession

Conversely, there are some distinct advantages to selling during an economic downturn. Here are some benefits you should know about:

You might be able to leverage a slight discount. Okay, so that’s probably not what you want to hear, but this doesn’t mean giving your company away for an undervalued, low-ball price. What it does mean is being able to attract qualified buyers with the promise of a fair deal. By taking this approach, you may be able to sell it faster and move on to something else, or perhaps retire, in a shorter period of time.
You can separate out time-wasters from serious buyers. This is something just about any business that’s for sale encounters. People who talk a good game but never really follow through and actually take action. On the flip side, serious buyers will understand the overall economic circumstances. Therefore, they’ll be more sincere and eager to get the deal done. In other words, they’ll likely have their ducks in a row and be ready to proceed because they’re serious.
Remember that you’re in control. Very few business owners who decide to sell are completely comfortable with their decision. The majority will second-guess themselves over and over again, even after they go through with a transaction. The bottom line is, if you are able to get a fair price, it’s probably not worth risking waiting any longer, because the economic environment could worsen and that will most definitely hurt your chances of selling.

What other advice do you have? Please take a moment to share your thoughts and experiences by commenting and giving others valuable feedback!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Should You Scale or Scuttle Your Startup

May 16, 2017 No Comments

When business begins to slow, your sense of confidence can slide, and it’s a scary sensation that usually follows. Facing the possibility of having to close the doors isn’t a pleasant one, and, you could feel like a complete failure. Before you begin to pack-up your office, take some time to look at the situation objectively. Ask yourself what’s the most likely cause and begin to take steps to solve rather than scuttle. If you are experiencing a steady slide in sales, there’s obviously a reason why that’s so. The good news is, there are always options, which can range from scaling out, scaling down, or, shutting down. The latter might not be the most welcome, but, sometimes it’s the best option, providing you with an opportunity to try something else. How to Solve the Scale or Scuttle Situation Should you be facing a mountain of bills, not seeing a jump in revenue, and having to cut back where you’ve never cut before, it certainly can be frightening and frustrating. The first place to begin is with yourself, your emotions, dreams, and, mental state. If you’re in a situation that simply taxes you too much and drains your energy, you ought to consider closing and starting fresh with something new. However, if you believe you can turn things around, you should seriously consider scaling down or out. …you’re stressed out, your relationships are fraying and your resolve is destroyed. Nevertheless,you must take action in order to end the turbulence with as much poise as possible. You can’t change the past, but you can certainly determine how you [proceed]. —Entrepreneur.com Scaling down is obviously taking measures to reduce your business workload to concentrate on key accounts. Scaling out isn’t the same as going up, it’s more lateral, providing more of what you already do, not offering new things. If you’re still wondering which way to go, take the following into consideration to make an informed, well-thought decision: Look at your workable options. One mistake some failing businesses make is to hammer a square peg into a circle, meaning they attempt to go beyond their core competencies, and, that’s just not a good idea. You’ll nearly inevitably see this backfire and make things go from bad to worse. Be prepared to stunt growth. Some businesses falter, not because of the lack of revenue, but because they take on too much. Should you and your team be stretched thin, it’s time to scale back and produce the best you can deliver. What you’ll find is more happy customers, co-workers, and self contentment. Get some unbiased advice. An outside view by an experienced business consultant can shed a lot of light on problems you didn’t even realize existed. Have your business evaluated and get some helpful advice that isn’t tainted by being too close or too attached. Know your company’s limits, and, its potential. Here again, if your company can’t comfortably keep pace with demand, it’s time to pull back and deliver quality over quantity. Should you be experiencing a spike, consider your business’ potential and grow incrementally. Understand your cash position. Having less cash isn’t necessarily or always a bad thing. It causes you to look at and prioritize expenses, weeding out what’s not needed. You’ll find creativity if you don’t succumb to fear. Another factor you’ll have to face is the emotional adjustment. We’re told all our lives that quitters never win and winners never quit, but, that goes against reality. Be willing to make an emotional adjustment and deal with the reality. [shareaholic app=”follow_buttons” id=”26833294″]

How to Manage Your Teleworking Staff

April 9, 2020 No Comments

Managing a staff remotely presents a number of challenges, some of which are completely unexpected. When a business first goes to a telecommuting or teleworking structure, it naturally undergoes some growing pains to adjust to the new dynamic. Although it is ostensibly more beneficial, cutting down on some expenses, and providing more convenience to staff who no longer have to commute, there are still some issues which can arise. So, it’s best to know what to expect. The Upsides of Telecommuting for Small Businesses There are a number of advantages to remote work situations. It gives team members more flexibility with their schedules. Also, it cuts down, if not nearly eliminates, office politics. Additionally, another benefit is that it can reduce operating costs, having to rely less on a dedicated, physical location. Particularly for small businesses, telecommuting seems an effective strategy for maximizing a workforce while still keeping costs low. You don’t need to pay for a centralized office space or deal with a drive to work, but you do have to contend with YouTube, Facebook and myriad other online distractions. —American Express But, it also means having to wrangle with coordination efforts, relying on different forms of communication, along with various other things to work out. With just a bit of tweaking here and there, it’s possible to make it work and even to reach a point where pretty much everything flows seamlessly. Ways to Manage Your Teleworking Staff Of course getting from Point A to Point B requires a combination of ingenuity, cooperation, and some out of the box thinking. To effectively manage a remote staff, you’ll need to do the following: Clarify roles. Each team member must clearly understand his or her role within the organization to eliminate duplication of effort, gaps in productivity, and more troublesome issues. Every person should have a defined, central role, as well as alternative responsibilities, just in case there is a need. Set expectations. In addition to defining everyone’s role, you’ll also need to clearly delineate your expectations. Otherwise, people won’t know exactly what you want out of them, and that’s a recipe for disaster. Develop procedures. It’s pretty straightforward to set up and explain and demonstrate procedures in a face-to-face environment, but presents quite a challenge with remote staff. This is where most of the initial communication will be necessary, in order to coordinate how things should be done. Set Regularly Scheduled Conference Calls. Regular communication is key with your staff in order to develop relationships and high trust cultures with accountability. Have a set time and day with a set agenda on key performance metrics and results, project updates, review current challenges and opportunities and collaborate openly so that there is a sense of community. Use a video conference application like ZOOM or GoToMeeting.com or other for more effective communication. Understand security issues. With remote work comes the risk of work-product being compromised. You need to learn about and address any potential issues by being proactive as possible. Reach out for help when needed. Lastly, if things just don’t seem to work, you should seek help with the right people. you might need to consult or hire a technical professional in order to get everything you need in order for the system to be fully functional. What other suggestions do you have? Please, share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Small Business Owners Can Craft Irresistible Discounts and Sales that Standout from the Competition

October 18, 2023 No Comments

How Small Business Owners Can Craft Irresistible Discounts and Sales that Standout from the Competition In the competitive landscape of modern commerce, offering discounts and sales is a strategic way for small business owners to attract customers and boost sales. However, simply slashing prices is not enough; your discounts and sales need to stand out amidst the sea of offers customers encounter daily. Because of this, it’s necessary to explore the most effective strategies small business owners can use to make their discounts and sales not only noticeable but also irresistible. By implementing these techniques, you can increase closed deals, enhance customer loyalty, and ultimately, drive higher profits for your business. Ways Small Businesses Can Offer Enticing Discounts and Sales that Beat Out Their Competition Discounts and sales are a great way to attract new customers and increase sales. However, with so many businesses offering discounts and sales, it can be difficult to make your offers stand out. Here are a few tips on how to make your discounts and sales stick out over the competition: Offer unique discounts and promotions. Instead of just offering a generic discount, try offering a more unique discount that is relevant to your business and target audience. For example, you could offer a discount for first-time customers, a discount for students or seniors, or a discount for customers who refer their friends. Use creative marketing language. When promoting your discounts and sales, use creative and eye-catching language that will grab attention. For example, you could use phrases like “Limited-time offer!” or “Save big today!” You could also use images and videos to help promote your discounts and sales. Personalize your discounts and promotions. When possible, try to personalize your discounts and promotions for each customer. For instance, you could send customers personalized email offers based on their purchase history or interests. You could also offer discounts and promotions to customers on their birthday or other special occasions. Make it easy for customers to redeem your discounts and promotions. Your discounts and promotions should be easy for customers to redeem. Avoid using complicated codes or restrictions. You should also make sure that your discounts and promotions are prominently displayed on your website and in your store. Also, be sure to track the results of your discounts and promotions. It is important to track the results of your discounts and promotions so that you can see what is working and what is not. This will help you to improve your future discounts and promotions. More Discount Strategies Small Businesses Can Use While these methods are actionable and helpful, there are additional ways to make such offers enticing to new and repeat customers. Here are a few additional tips that can help you increase the number of closed deals and profits from your discounts and sales: Create a sense of urgency. When promoting your discounts and sales, create a sense of urgency by letting customers know that the offer is only available for a limited time. This will encourage customers to act quickly and make a purchase. Use social proof. Social proof is a powerful psychological phenomenon that can influence people’s behavior. When people see that others are taking advantage of your discounts and sales, they are more likely to do the same. You can use social proof by displaying testimonials from satisfied customers on your website and in your store. You can also promote your discounts and sales on social media and encourage customers to share their experiences with their friends and followers. Upsell and cross-sell. When customers are taking advantage of your discounts and sales, it is a great opportunity to upsell and cross-sell them on other products and services. For example, if a customer is buying a new phone, you could upsell them on a case or screen protector. Additionally, you could also cross-sell them on a wireless plan or accessories. By following these tips, you can make your discounts and sales stand out over the competition and increase the number of closed deals and profits. But, take the time to experiment to learn what works most effectively. Chances are there’s a combination that will yield the best results. With a little trial and error, you’ll discover what works and what doesn’t. Right now, you can get John Waters’ latest book for FREE! (Currently selling for $19.95 on Amazon). This inspiring book titled “Profit by Design: The Blueprint to Successfully Scale Your Business and Regain Your Freedom” is a must-read for business owners who want to do just that! Request your FREE copy in any of the following ways: By phone 602-435-5474 Visit Waters Business Consulting Group By email: Steve@WatersBusinessConsulting.com