The Numbers Tell A Story (So Make it a Good One)
Each day, your business provides goods and services to your customers. And behind each product and project is a story of how you got there.
Every business has a story.
And some of the most heroic stories involve the numbers.
The first time your revenue reached $1 million.
The time a client finally said yes, after 7 meetings, 10 phone calls, and 20 emails back and forth.
The goal to reach 20% gross margin in the next 3 years.
All of these numbers add up to the story of your business.
When it comes time to exit your business, this story is a key component of success.
If you’re trying to sell to a 3rd party, the story of how you got the business to where it is and a picture painted of where it can go are vital to a successful process.
Personally, my favorite stories are the ones of early struggles that self-made business owners found a way through. The creativity, drive, and determination present in those moments is admirable and something we love hearing about and learning from.
But even something as seemingly dry as your EBITDA is packed with information on the ease with which your business runs and tells a story that can excite a potential buyer and point to its possibilities.
Recommended Reading: What is EBITDA, Anyway?
Or maybe you’re looking to pass it onto the next generation in your family.
Sharing the stories of the 6 years it took to take out your first paycheck or the 10 banks that said no, before one of them believed your vision for the company can provide a deeper understanding of the responsibility they’re taking on to run this business.
If you want them to care the same as you have, share more about how you’ve arrived here.
The stories of why you started, what you do, and where you’re headed are all keys to developing a clear understanding of your business.
That’s also why it can be so hard to let it go. Your identity is so wrapped up in what you’ve built and what you do. Heck, your name is probably even on the building. So it only makes sense that there is more to the sale of your business than a final asking price.
Take a deep dive into your numbers and see what stories they tell.
Here are some prompts to get you started:
Client Retention: How many customers stay with you, year after year or project after project?
Cost per Acquisition: What is financially required to sign up the next customer?
Growth Rate: How much your business has grown, year over year in a given period of time.
Close Rate: How many sales were made out of your total opportunities? You may believe you know this metric, but being able to define it, track it, and report on it is key in telling the story to potential buyers.
And of course, look back to those early days to show how far you’ve come: the first shoe you sold versus the 100,000 you sold this year, the three failed launches and the one that finally took off, the years it took to turn a profit versus your profit margins now.
These stories aren’t just numbers and they aren’t even nostalgia: they’re a powerful and persuasive tool that will help you throughout the sale process.
Okay, it’s your turn: what are 3 “numbers” stories you can tell right now about your business?
At Doescher Group, we specialize in helping owners exit on their own terms. In some cases, that means preparing them for sale, while in others it means helping them implement systems. Reach out to us today to learn more.
