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- 10:31:23 - This week in The Hub - Main Street Weekly
10:31:23 - This week in The Hub - Main Street Weekly
What you need to know about buying, growing or selling small to medium businesses. The news, the pods, the social influencers. Curated from the world of SMB (small to medium business)
Ronald Skelton & Gia Cilento
December 06, 2023
We do the research and bring you what’s pertinent when you want to grow, scale, buy or sell your first or your next business.
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In the News, Blogs, and AI …
Culture can often be assumed and taken for granted, but it shouldn’t be. Understanding the unique habits, ways, and values of merging organizations is crucial for successful integration. It’s typical that different organizations will have different cultures, and that’s ok. By identifying the cultural elements of both businesses – where they complement each other and where they differ – you’ll be able to anticipate areas of potential alignment and clash. (1005 words) Read more here...
Given the current state of the economy, now might be an ideal time to pick up or divest a distressed convenience store business. After all, handled properly, mergers and acquisitions (M&As) allow the acquiring business to gain another operation that is a good fit under favorable terms and that might not otherwise survive.
An M&A transaction can mean helping a troubled business survive without the owners or shareholders completely losing what they’ve built up over the years. Equally important, an M&A can save the jobs of workers. (770 words) Read more here...
Small and micro businesses (SMBs) are looking “beyond Main Street” and “plan to prioritize cross-border sales,” according to the seventh edition of Visa’s Global Back to Business Study. And it’s not only American businesses that have global growth in mind. The study examined consumers and small businesses in 10 international markets: Australia, Brazil, Canada, Germany, Hong Kong, Ireland, New Zealand, Singapore, United Arab Emirates (UAE), and the United States. (1100 words) Read more here...
Starting and growing a small business brings no shortage of challenges. As an entrepreneur, you need determination, creativity, and vision to succeed. But you also need a grasp of the complex legal landscape. This is where partnering with a corporate lawyer online can provide invaluable expertise as your business grows. (975 words) Read more here...
Business Process Automation Software is a technology that can perform certain business functions with minimal to no human involvement. Some of these processes include data analysis, sending emails, scheduling, processing documents, and making decisions. The purpose of this software is to streamline business processes to save time and money. (552 words) Read more here...
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In the Pods Reviews …
The Hub Short Take:
Chris Younger, co-founder of Class VI, shares his insights on getting a business ready for sale. He emphasizes the importance of understanding the owner’s objectives and benchmarking the business against those goals. Chris highlights the risk of a business being too dependent on the owner and the need to build a strong team. He also discusses the process of mock due diligence and the importance of addressing potential issues before going to market. Chris advises business owners to focus on creating a credible growth plan to attract buyers. He also touches on internal sales and the challenges of selling to the management team. Chris concludes by discussing the concept of high-yield investments and the value of investing time in making a business more scalable and predictable.
The Takeaways:
Understand the owner’s objectives and benchmark the business against those goals.
Build a strong team to reduce dependence on the owner and increase the business’s value.
Conduct mock due diligence to identify potential issues and address them before going to market.
Create a credible growth plan to attract buyers and demonstrate future opportunities.
Selling a business internally can be challenging, but it can be a rewarding option if successful.
Investing time in making a business more scalable and predictable can yield high returns.
The Quotes:
“The most significant risk for businesses is being too dependent on the owner.”
“Putting together a credible growth plan creates value for the business owner.”
“Most business owners are not suited to be owners given the risk tolerance required.”
“Investing time in making your business more scalable and predictable is the best investment.”
“Ignoring the founder is to the buyer’s detriment.”
The Guest:
Chris Younger is the co-founder of Class VI, a mergers and acquisition firm that specializes in helping people sell their businesses. He is also the author of “Harvest: The Definitive Guide to Selling Your Business.” With years of experience in the industry, Chris is an expert in preparing businesses for sale and maximizing their value.
The Host:
Josh Patrick is a Certified Financial Planner®, a Certified Financial Transitionist®, a Chartered Financial Consultant®, a Chartered Life Underwriter®, a serial entrepreneur, a writer, reader, and thinker. He’s a contributor to The New York Times’ You’re the Boss blog as well as the author of the Stage 2 Planning Partners blog, Creating Value. He’s written for American Express Open as well as Inc.com and the Huffington Post.
The Hub Short Take:
Adam Ringo discusses the importance of evaluating leaders when investing in a business. He emphasizes the need for alignment between the investor and the leader, including chemistry, capacity, and calling. Adam believes that leaders should have the capacity to execute and hold people accountable, as well as the ability to think creatively and inspire others. He also highlights the importance of falling in love with the process rather than being solely focused on the outcome. Adam emphasizes the value of relationships and the need to prioritize people over monetary success.
The Takeaways:
Evaluating leaders involves assessing chemistry, capacity, and calling.
Leaders should have the capacity to execute and hold people accountable.
Falling in love with the process is more important than being solely focused on the outcome.
Relationships should be prioritized over monetary success.
The Quotes:
“If we started to evaluate things on a relational score like the relational magnitude or the relational weight or the relational value that we carry with other people, then it’s a lot more fun to do business together.”
“Alignment is everything. There’s certain value and belief sets that are important to us.”
“We can all self admit that one, we’re broken people. Like, we’re kind of messed up and we pursue self all the time.”
“The reality is we all know we can’t control outcomes. The world is so much bigger than us.”
“At the end of the day, when we’re 65, 75 years old, our kids, our friends, things of that nature, they could care less. I hope my kids care a lot less about wealth that was created for them and a lot more about who I was as a dad.”
The Guest:
Adam Ringo is the leader of a family office and a private equity investor. He focuses on investing in small to medium-sized businesses and takes a controlling interest in these companies. Adam is passionate about building sustainable businesses that create long-term impact for both the employees and the community.
The Host:
Element Three is a marketing consultancy in Indianapolis, Indiana. We transform brands and generate demand for organizations at inflection points of growth. But don’t just take our word for it. See our work: https://elementthree.com/our-work/
The Hub Short Take:
Marty Fahncke shares his expertise in mergers and acquisitions, providing valuable insights on when to sell a business and how to grow through acquisition strategies. He emphasizes the importance of staging a business for sale and preparing it to be attractive to potential buyers. Marty also discusses the different factors that determine the value of a business and how to leverage acquisitions to expand and strengthen your own business.
The Takeaways:
Staging a business for sale can significantly increase its value and make it more attractive to potential buyers.
The more valuable you are to your business, the less valuable your business becomes. Building a business that can operate without you is crucial for its long-term value.
The size of your business can affect its valuation, with larger businesses often commanding higher multiples of profit.
Acquiring businesses within your supply chain or related industries can be a strategic way to grow and strengthen your own business.
Joint ventures and partnerships can be a viable option for acquiring businesses without having to run them yourself.
The Quotes:
“The more valuable you are to your business, the less valuable your business is.”
“Staging a business is like staging a home. Make it look its absolute best for prospective buyers.”
“Acquiring businesses within your supply chain can improve your profit margins and strengthen your business.”
“Think bigger. Make the most out of your business and your life.”
The Guest:
Marty Fahncke is a seasoned world-class marketer with over 30 years of experience in growing and scaling businesses. He has helped businesses scale to over $1 billion in revenue and executed over $450 million in mergers and acquisition transactions. Marty is the co-founder of Westbound Road, a mergers and acquisitions advisory firm.
The Host:
Marco Torres (Capt Marco) Co-Founder of MarketingBoost.com Incentives & Rewards Fulfilling Lifestyle Dreams Specializing in Incentives & Rewards That Fulfill Your Team’s and Your Customer’s Hopes & Dreams We Teach How to Use Travel Incentives To Acquire More Clients
The Hub Short Take:
In this episode, Henry Lopez interviews David Barnett on the topic of “Build vs Buy” when it comes to investing in a small business. They discuss the advantages of buying an existing business, such as an established customer base and immediate cash flow. They also explore the disadvantages, including hidden issues and the need for due diligence. David emphasizes the importance of evaluating motivations and understanding the risks involved in buying a business. He provides insights into valuing a business and finding good opportunities. The episode concludes with a discussion on when to engage with professionals like David and how to access his resources for further learning.
The Takeaways:
Buying an existing business provides immediate cash flow and an established customer base.
Seller financing can align the interests of the buyer and seller and provide more flexible terms.
It is important to evaluate the risks and motivations involved in buying a business.
Valuing a business requires considering notional cash flow levels and industry-specific factors.
Building relationships and networking with business owners can lead to better opportunities.
The Quotes:
“When you buy a business, the previous owner has worked out the kinks in the product and service delivery.” — David Barnett
“The best deal is to acquire a business with a cash flow that can afford to pay for itself.” — David Barnett
“The longer they delay selling, the wealthier business owners become because of their profitable business.” — David Barnett
The Guest:
David Barnett is an expert on buying and selling small businesses. With over 20 years of experience, he has helped entrepreneurs grow their businesses, buy and sell businesses, and secure financing. He is the author of several books on small business transactions and the host of a popular YouTube channel on buying, selling, financing, and managing small and medium businesses.
The Host:
The How of Business podcast is focused on helping you start, run, and grow your small business. Our free on-demand audio podcast show offers practical advice, tips, and techniques for existing business owners and aspiring entrepreneurs.
Weekly episodes include discussions of small business topics with host Henry Lopez, and interviews with other successful entrepreneurs and professionals. [read more about Henry Lopez]
The Hub Short Take:
David Dodson, author of "The Manager's Handbook," shares his journey from growing up in rural Colorado to becoming a successful entrepreneur, investor, and teacher. He discusses the origins of the search fund model and the importance of execution in business. Dodson also highlights the five key skills that successful managers possess, including the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality. Dodson emphasizes the impact of underperformers and the importance of creating a positive work environment.
The Takeaways:
Successful managers possess the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality.
The search fund model allows entrepreneurs to buy and run existing companies, providing liquidity and an exit strategy for the seller.
Execution is crucial in business, and the ability to get things done is often more important than having a great strategy.
Seeking and taking advice is a valuable skill that can help managers make better decisions and improve their performance.
Building a team is essential for success, and managers should focus on finding the right people and creating a positive work environment.
The Quotes:
"Successful managers possess the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality." - David Dodson
"The search fund model allows entrepreneurs to buy and run existing companies, providing liquidity and an exit strategy for the seller." - David Dodson
"Execution is crucial in business, and the ability to get things done is often more important than having a great strategy." - David Dodson
"Seeking and taking advice is a valuable skill that can help managers make better decisions and improve their performance." - David Dodson
"Building a team is essential for success, and managers should focus on finding the right people and creating a positive work environment." - David Dodson
The Guest:
David Dodson teaches ETA at Stanfod GSB, is a retired investment banker, investor, and has been CEO of multiple companies. He is also the author of "The Manager's Handbook," a best-selling book in the business space. Dodson has extensive experience in the world of small to medium business acquisitions and mergers.
The Host:
How2Exit Interviews of M&A industry experts and mentors from around the world: US, London, Australia, etc. We talk about acquisitions and mergers of small to medium businesses, We speak with Mentors and authors who teach the ins and outs of buying, growing, and selling small to medium businesses. I also interview brokers, buyers, attorneys, investment bankers, family office owners, and even business owners looking to sell.
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Founding Member Shout-Out
Shout out to our new founding member, with over 30 years in M&A, this company offers a Resource Center helping you buy good businesses. Very underpriced - get it now before they finish upgrading the site and very likely up the pricing.
In the Knowledge
In the ever-evolving corporate landscape, mergers and acquisitions (M&A) regularly make headlines. These financial transactions, which involve the merging of companies or the acquisition of key business assets, can offer strategic advantages. Whether it’s a company absorbing another, merging to create a new entity, acquiring major assets or even making stock offers, these maneuvers aim to optimize resources, streamline the workforce and bolster product portfolios. This often leads to notable cost savings, improved efficiency and a stronger competitive position.
Although M&As often signify growth and ambition, they aren’t immune to pitfalls. Missteps, miscalculations and unforeseen challenges can turn promising deals into cautionary tales. In this article, we explore the stories of M&A deals that veered off course and examine the factors behind their derailment. (775 words) Read more here...
Making the decision to start a small business is no easy feat, but it’s incredibly inspiring that so many people try; in fact, on average, 4.4 million people across the U.S. open a business. And while not all of them succeed, there are a few keys to success that vastly improve their chances.
First and foremost, having the right mindset and a clear path forward are important—these improve prospective business owners’ chances of leading a career and life of fulfillment, both personally and professionally, and are key for staying grounded during challenging periods.
Indeed, as with any important life journey, owners can expect some speed bumps along the way. From securing financing in the beginning stages to hiring and retaining talent, there is much to master to help ensure a business achieves longevity and sustained growth. (1120 words) Read more here...
Hey, friends, we could use your help to grow The Hub - Main Street Weekly, and bring it to more people so we can continue to serve you and others. If you like something we shared this week, please share it on X (formerly known as Twitter) or LinkedIn and tag us when you do. Let’s get people talking.
In the BIG Guys Corner … (middle market and above)
Elon Musk makes 'stiff and firm offer' of $1 billion to Wikipedia but there is a condition (It’s a joke -)
World's richest person Elon Musk on Sunday (October 22) said he would give $1 billion to wikipedia if it changes its name for one year. Musk who acquired the social media platform Twitter and later renamed it to X, made 'a stiff and firm offer on his personal account on X (100 words) Read more here...
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In the Sosh … who to follow this week
Helping Fortune 500 Companies effectively target and retain small business customers. As CEO of Quintessence Group, Melinda Emerson "SmallBizLady", and is an expert on small business…
Luisa Zhou is the founder of LuisaZhou.com, which teaches people how to build their own profitable, impactful, and fulfilling six- to seven-figure online business working for themselves.
She’s helped thousands of students, including health and career coaches, designers, copywriters, and consultants, and shown them how to launch businesses that generate anywhere from 30K to 100K in a matter of months.
Connect with her on her blog here.
In the calendar …
A twice-monthly networking meeting where acquisitions entrepreneurs come together online to build teams, share ideas and resources, and help each other succeed. The first and Third Tuesday of each month. Check it out...
The Booth-Kellogg ETA Conference is an annual event that brings together search fund entrepreneurs, investors, MBA students, faculty, and other participants in the ETA ecosystem to meet one another and share insights into this rapidly growing area. The 10th Annual Booth-Kellogg ETA Conference at the Marriott Magnificent Mile | 540 Michigan Ave, Chicago, IL. Check it out...
A festival for SMB owners, operators, and investors.
An immersive two-day experience for small to medium-sized businesses with ~10-500 employees. Choose your own adventure amongst a diverse set of presentations, interviews, debates, workshops, and conversations.
Every business has a birthplace and it’s never too far from Main Street. Check it out...
Capital Camp is an upcoming event scheduled for May 21-23, 2024, in Columbia, Missouri. The event is described as a gathering for "curious, kind, and thoughtful investors, capital providers, entrepreneurs, and executives" who are pushing boundaries and breaking new ground. The event spans three days and three nights, offering serious investing conversations in a relaxed setting—think shorts and sandals rather than suits and ties. Attendees can expect interactive programming, a variety of outdoor activities, and an endless supply of food, drink, and entertainment. The event has received high praise from past attendees, with many describing it as the most valuable and best investing conference they've ever attended. Check it out…