The Business of Meetings – Episode 157 – Running Your Business as Though You Plan to Sell It
Today, Eric shares some recent content he created for a webinar for a group of business owners. It focuses on increasing the value of your business and preparing your business to be sold- even if you are not looking to sell it. Make sure your business can function without you!
We hope you find the information helpful!
Eric Rozenberg has helped thousands of entrepreneurs grow and manage their business better. His purpose is to inspire people with integrity and honesty, help them take action, get results, and develop their business and their Life.
For two decades in his previous life, consulted with Fortune 500 companies and produced award-winning sales meetings, incentive trips, product launches, and conferences in more than 50 countries across diverse industries. He believes organizations must create meetings and events that are not only breathtakingly memorable but which bring corporate strategies to life and amplify team motivation/performance.
Eric is an acquisition entrepreneur, speaker, podcaster, and two-time Amazon bestselling author.
His podcast, “The Business of Meetings,” is the first podcast in the Meetings & Events Industry dedicated to business owners. Every Tuesday, listeners learn something new they can apply in their businesses and/or get inspired by amazing guests.
His first book, Meeting at C-Level, is the first book on the “why” of a meeting. It has been endorsed by 20 of the most influential leaders from the corporate and association worlds and helps professionals to position themselves as a strategic partner.
His second book, Before It’s Too Late, A Love Letter to my Daughters and America, is a story of grit, perseverance, and courage. It describes why and how he and his wife brought their daughters to America and why it is the greatest country on Earth.
Eric is a current member of the Entrepreneurs Organization and The Strategic Forum. He also serves on the Board of Trustees of the Demoucelle Parkinson Foundation in Belgium and was the first European to serve as Chairman of the International Board of Meetings Professional International (MPI), the largest professional association in the Meetings and Events Industry.
Eric has always been working in small businesses. He has started and exited several small businesses and has been involved in various organizations. He loves what he does, which includes sharing content via his books and this podcast and being a trusted advisor for entrepreneurs. He also seeks to acquire small businesses, mainly in service, hospitality, and in continued professional education.
Why did you start your business?
Business is a rollercoaster, and it is never easy. When you are going through difficult times, it helps to remember why you started the business in the first place.
Why would you want to sell your business?
People sell their businesses for various reasons. Some build their businesses so the next generation can take over, while others consider selling because they no longer have the drive to continue. Sometimes, people sell to make money or because they want more time to focus on what they enjoy most.
What is your number, and what is your time frame?
If you are considering selling your business five years from now, you need to know how much it is worth today, how much you will need to make when you sell it, and how to increase its value by the time you are ready to sell it. You will be taxed when you sell, so you will not get 100% of the proceeds.
What are your values?
Define your values because they will influence whatever matters to you. They will influence how you grow your business, how and when you sell it, who you sell it to, and what you do to protect those working there.
How much is enough?
Work out how much will be enough to cover whatever you want from life. That should include your lifestyle choice and the goals you hope to achieve.
What buyers look for
You will likely get a higher price if you sell to a company that sees your business as a strategic acquisition rather than selling to someone who would operate the business.
Venture capital and private equity buyers look for good investments and they usually have a lot of funding to invest. However, you might not be at their level of investment.
Eric is an acquisition entrepreneur. He looks for businesses between one and two million EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
It is helpful to look at potential companies that could acquire your business. Look at the type of businesses they have and the acquisitions they make. Get to know them, and perhaps even develop a relationship with them.
You will need to match your potential buyers’ expectations to your values and numbers.
Increase the value
Your business will be worth more if it can function without you. You can also create value by hiring the right people, building the right culture, and having the right processes in every department.
Focus on your strengths and leverage them. Hire for your weaknesses and delegate everything outside of your zone of energy, to increase the value of your business.
Know your numbers
You need to know the numbers, the analytics for projects, and your profit. Plan for your cash flow and the KPIs that matter, and focus on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Retiring rather than re-tiring
When you stop doing something you have been doing for many years, replace it with something to keep you busy and occupy your brain. Find something stimulating to do after you sell your company.
Focus on the processes, people, and culture. Most importantly, ensure you have a good plan to execute and focus on your accountability. (Eric suggests having an accountability buddy.)
Connect with Eric
Before It’s Too Late, A Love Letter to my Daughters and America by Eric Rozenberg
Meeting at C-Level by Eric Rozenberg
Simple Numbers 2.0: Rules for Smart Scaling by Greg Crabtree
Scaling Up by Verne Arnish
Traction by Gino Wickman
Atomic Habits by James Clear
Who Not How by Dan Sullivan and Benjamin Hardy
Buy Back Your Time by Dan Martell
The Number by Lee Eisenberg
The E Myth by Michael Gerber
The Psychology of Money by Morgan Housel
Entrepreneurs Organization (EO)
Demoucelle Parkinson Foundation in Belgium
Meetings Professional International