In the early days of your firm, you were the business. You had the courage to bet on yourself. You decided your talents could help solve real problems for clients. You sold the work. You designed the services and delivered the work. You fixed the messes. You built the culture. That was survival and it took your resilience and brute force to grow into a real firm.
Ask a founder if they have their Ideal Client Profile figured out, and most will say yes without hesitation. Ask their team, and you’ll hear a dozen different versions. That’s the problem. A vague or outdated ICP can’t guide decisions. It doesn’t scale. And it doesn’t protect the firm when the pipeline dries up.
When I joined my father’s marketing research company in 1997 as his first employee, I had no idea that letting go of sales would ultimately 10x our revenue. My initial role was building our new research service, while my father handled all sales. Since our new service was an upsell to existing clients, the sales process was relatively straightforward at first.
Embarking on the journey to sell your business is a monumental decision, especially for small to lower-middle market business owners. It’s not just a transaction; it’s a pivotal moment that can shape the future of what you’ve built. However, amidst the excitement and potential for growth, there lurks a critical challenge that could derail your plans: counterparty risk, particularly the risk stemming from financing contingencies.
Imagine you’re in a game where your character has a treasure of immense value, attained through years of sacrifice, risk taking and toil. The objective of the game is simple – find a buyer for the item and transact at a mutually acceptable price. Easy, right? Well, there’s a twist.
A healthy balanced revenue mix is going to impact your ability to sell your firm. Get it right before it’s too late!
If you plan to sell your firm one day, can you answer questions around these 3 metrics?
Are you interested in exiting your firm one day? Discover the differences between merging and selling, and how it might benefit your exit strategy.
Acquiring or merging with other businesses is a strategic decision that requires careful financial and tax planning.
Selling a boutique professional service firm is a significant endeavor, and having the right attorney by your side can make all the difference in ensuring a smooth and successful transaction.