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How to Sell a Lousy Business

For the most part, the value of your Business is based on financial performance.

However, there’s an equally, if not more important factor, that causes others to want to buy your company.

In fact, I’ve seen (and helped) many businesses with lousy financial performance 

sell for very solid sums.

Before I share what this factor is, let’s be clear what we mean when we talk about financial performance.  

We are talking about profits, both on a historically demonstrated basis and with the prospects for even more of them in the future.

Truly profitable companies are the the "belles" of the business dance, effortlessly attracting suitors of all types - growth capital, owner liquidity, Unsolicited Buyout Offers and the like.

For everyone else, there is just a ton of self-improvement and “prettying up” work to do.
 

The self-improvement spans across every aspect of our business, the gritty and demonstrable details of our marketing, sales, operational, and financial competencies.

And then there is the “prettying up” - the work on our company culture, on the skill sets of our people, and on the élan with which we work and fight together to overcome adversity and win.

As we grapple with it all, transformational things begins to happen.

We “hit upon” those golden ideas, those awesome projects, the brilliant new hires, and / or the new products or services so exciting in their prospects that...

...they attract the eyes and hearts of our desired business suitors in the same manner and with the same effect as actual profits do.

As we have more and more of these “aha moments,” we start to develop that lovely business asset that creates multi-million, and in this day and age, multi-billion dollar offers for companies with not much more than business plans and histories of operating losses.

That asset is the promise of our business.

The promise that its future will be brighter than its past.

The promise that we can break out of that “lousy” pool, and be seen and judged as the business “belles” we really are.

This promise can sometimes, in the midst of the daily struggle, be hard to find and feel. And even harder to communicate.

But through the commitment to, and daily practice of ongoing business change, innovation, and improvement, eventually, inevitably,
we will find it. 

And then our biggest problem will be which of our many business suitors to dance with...

...and to party all night with!

Is Your Business Being Invited to the Ball? Are you generating the kinds of real profits that effortlessly attract business suitors of all types - growth capital, owner liquidity, unsolicited buyout offers - to you?

If so, great and congratulations!

If not, and thus you need help in identifying and making happen the needed changes at your company to better communicate its great promise, complete this short questionnaire and give us a brief description of your current situation.

And we’ll reach out with our thoughts to help you.

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This post first appeared on Growthink Blog | Growthink, please read the originial post: here

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How to Sell a Lousy Business

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