How to Market Better: Diane Conklin talks to Georgia Business Brokers
Marketing expert Diane Conklin spoke to the Georgia Association of Business Brokers about better ways that entrepreneurs and small businessmen can market. She talked about the marketing triangle: message, market, medium. What is the message you’re trying to get out, what market are you in and what medium are you using? Your marketing should also be measurable, to be sure you’re getting results.
Watch Diane’s message here.
Read MoreThe Variables that Drive and Influence Business Valuations
If you’ve never bought or sold a business before, then the factors that drive and influence business valuations likely seem a bit murky. In a recent Divestopedia article from Kevin Ramsier entitled, “A Closer Look at What Drives and Influences Business Valuations,” Ramsier takes a closer look at this important topic.
Business brokers and M&A advisors play a key role in helping business owners understand why their business receives the valuation that it does. No doubt, the final assessed value is based on a wide array of variables. But with some effort, clarity is possible.
In his article, Ramsier points out that “value means different things to different buyers” and that the “perceived value depends on the circumstances, interpretation and the role that is played in a transition.” It is important to remember that no two businesses are alike. For that reason, what goes into a given valuation will vary, often greatly.
Looking to EBITDA
Ramier points to several metrics including return on assets, return on equity and return on investment. Another important valuable for companies with positive cash flow is a multiple of EBITDA, which stands for “earnings before interest, taxes, depreciation and amortization.” EBITDA is widely used in determining value. On the flip side of the coin, if the company in question has a negative cash flow, then the liquidation value of the business will play a large role in determining its value.
Primary Drivers to Consider
Ramsier provides a guideline of Primary Drivers of Valuation, Secondary Drivers of Valuation and Other Potential Drivers of Valuation. In total there are 25 different variables listed, which underscores the overall potential complexity of accurately determining valuation.
In the Primary Drivers of Valuation list, Ramsier includes everything from the size of revenue and revenue stability to historical and projected EBITDA as well as potential growth and margin percentages. Other variables, ones that could easily be overlooked, such as the local talent pool and people training are also listed as variables that should be considered.
Support for the Business Owner
The bottom line is that determining valuation is not a one-dimensional affair, but is instead a dynamic and complex process. One of the single best moves any business owner can make is to reach out to an experienced business broker. Since business brokers are experts in determining valuation, owners working with brokers will know what to expect when the time comes to sell.
First Impressions Matter When Selling a Business
I chat with various business owners every day and hear of a variety of businesses in nearly every imaginable business sector. The businesses that give the best first impression are those that appear well organized, are relatively clean, and where the business owner has books and records readily available. This gives me an indication that the business is most likely well run and that the owner has given some thought and preparation to the idea of selling his/her business.
What is the first thing people do when they decide to sell their car? Many take the car and have it professionally detailed. Those that don’t have it professionally detailed at least either take it to the car wash for a wash and wax, or spend the time and energy to wash and wax it themselves. Will anyone pay top dollar for a car with layers of dirt and bird droppings crusted into the paint? Not likely.
What do people do when they are going to sell their house? Many times they will paint the house, do a bit of landscaping and clean things up so the house shows well. Will anyone pay top dollar for a house that is dirty and cluttered with foot high weeds in the lawn? Not likely.
When it comes to business, the psychology is pretty much the same. I have seen manufacturing shops so clean you could eat off the floor. And, I have seen shops so filthy I didn’t want to sit, lean against, or touch anything. Interestingly enough it seems to be the latter where the business owners insist their business should command top dollar.
A buyer is not going to pay top dollar for a business that appears dirty, cluttered, disorganized and has either no books and records or records that make little to no sense.
GABB member Loren Schmerler recommends that before putting a business on the market, the owner should fix all interior and exterior problems. Fix parking lot holes, replace dead shrubbery, clean the windows, fix the roof and/or paint the exterior to enhance curb appeal. Fix stained ceilings, replace light bulbs, repair and repaint walls, get workers to clean their desks.
“When the buyer tours your business, you want them to visualize becoming the owner and being proud to do so,” advises Schmerler.
The bottom line is that as a business owner, investing a few thousand dollars to have a professional work with you in preparing your business for sale will in most cases give you tens of thousands of dollars or more in return.
This article is taken from the BizBen blog. Peter Siegel is the Founder & President Of BizBen.com & BizBenNetwork.com (National version). He consults daily with intermediaries, buyers, owner/sellers & advisors daily about buying and selling businesses.
Read MoreWhat is Marketing, Really?
By Diane Conklin
Diane is the founder of Complete Marketing Systems. She will be speaking on Wednesday, Aug. 21, to the Georgia Association of Business Brokers meeting at the Georgia Association of Realtors auditorium at 6065 Barfield Road, Sandy Springs, GA, 30328. More information on the GABB blog.
Marketing sometimes gets a bad rap…
People will say things like “it’s yucky” or “it makes me feel dirty” and the list goes on and on.
If that’s true for you, then what you’re experiencing is Not Marketing – at least not marketing done the way it should be.
Marketing can be defined in many ways. Simply put, it’s really everything you do in your business to put yourself in a situation to sell your programs, products and services.
While that may seem like a big, broad definition, if you think about it, it may be the truest definition of marketing you’ve ever heard.
So, what does that really mean?
It means that marketing is about building the relationship with your prospect and your client so they will want to know more about you and what you do and then buy from you.
By that definition what does marketing include…
√ Social Media √ Articles
√ Emails √ Interviews
√ Snail Mail √ Speaking
√ Print Ads √ Ads
And, so much more…
If you put you in your marketing and stop thinking about it as some formula you have to follow or how you can use the latest tactic to get a sale, you may just discover that marketing is fun.
Marketing is how you let your clients and prospects get to know you a little better, it’s how you ultimately SERVE your clients and how you make money.
Do some people use tactics that might not resonate with you? Sure, they do. We’ve all had less than stellar experiences with people marketing to us or trying to sell us something that didn’t sit right with us.
The key for you is to not do those same things…to be more personal, caring and to come from a place of serving and doing what’s right for your clients and prospects (please don’t think I’m saying here that the client is always right – I don’t believe that, but that’s a discussion for another day).
I’d love to hear your feedback or stories of great marketing.
- (866) 293-0589
- Email: info@completemarketingsystems.com
Learn Simple, Effective Marketing Success Secrets on Aug. 21
Find out how you can harness a simple, effective marketing strategy to grow your business when internationally known author, marketing and business strategist Diane Conklin speaks on Wednesday, Aug. 21, to the Georgia Association of Business Brokers. The GABB is the state’s largest association of professionals dedicated to buying and selling businesses and franchises.
Diane’s topic, “Marketing Success Secrets: How To Grow Your Business & Attract More Ideal Clients With Simple, Effective Marketing Strategies,” will include tips specifically aimed at business brokers and their clients.
The GABB meets at the Georgia Association of Realtors at 6065 Barfield Road, Sandy Springs, GA, 30328, and the meeting will last from 10:30 a.m. to noon preceded by a free light breakfast networking session at 9:45 a.m. Rob Tamburri, CPA PFS, managing partner of Balog + Tamburri, CPAs, is the sponsor of the meeting.
Diane is a direct response marketing expert who specializes in showing business owners how to turn their businesses into money making machines using rapid profit acceleration, leveraged business growth and strategic implementation by integrating their online and offline marketing strategies, media and methods, to get maximum results from their marketing dollars with Complete Marketing Systems.
For more than 25 years Diane has been leading small businesses to bigger profits through her coaching, consulting, marketing funnels, systems, live events and by providing done-for-you services to clients all over the world. As the founder of Complete Marketing Systems, Diane has been involved in many campaigns grossing over $1,000,000.00 several times in her career, and she routinely helps people grow businesses to six figures, and beyond. Diane was voted Glazer-Kennedy Marketer of the Year for her innovative marketing strategies and campaigns and was nominated for Atlanta Business Woman of the Year.
The monthly meeting begins at 10:30 a.m. and is preceded at 9:45 a.m. by a free light breakfast and networking session. There is networking with coffee and pastries from about 9:45 to 10:30 and the meeting will last from about 10:30 to somewhere between 11:30 and noon.
The GABB is the state’s largest and oldest association of professionals who specialize in brokering the purchase and sale of businesses and franchises. Broker members help owners determine the asking price of their business, create marketing plans and strategies for selling their business, identify and qualify buyers, and have the knowledge, experience and skills needed to help maintain the confidential nature of the process. The professionals of GABB relentlessly pursue professional development so they can provide superior, ethical services for all customers and clients. Affiliate members include bankers, lawyers, appraisers, insurers and other professionals who work closely with brokers to help owners and buyers get to the closing table.
For more information about GABB, please contact GABB President Dean Burnette at 912-247-3209 or dean@b3brokers.com, or GABB Executive Director Diane Loupe at diane@gabb.org or 404-374-3990.