This week I’d like to share an interview I did with Todd Westra from the Growth and Scaling Podcast. It was a great discussion on the some of the myths of entrepreneurship. We discussed a few huge challenges in the market – firstly over 90% of companies trying to exit are not ready for prime time. And secondly most acquirers are not fit to be acquirers, they are just not ready with a robust process.
- Entrepreneurs are working hard making money but might be quite unsaleable.
- Positioning is the top playbook by a mile.
- Dependency on legacy products, owners, or a few key customers are not attractive attributes for acquirers.
- Building a business buyers love to buy is an options strategy not an exit strategy. It delivers the option to sell one day even if you don’t
- Building processes and playbooks around key actions allows owners to let go of the reins. And develop key staff that can run the playbooks.
- Scaling is not the same as gowing. Scaling should make the business safer, stronger more attractive over time.
- Preparing a company for sale, getting into the best possible shape takes years. Watch the Private Equity guys nurture and develop their portfolio for exit. It’s not an overnight success.
- Alignment of effort is essential. A strategic plan must articulate a departmental script that is aligned around a vision.
The full interview is now on YouTube
TPP scales companies through operational excellence and through acquisitions. Think of us as hands-on Operating Partners. It’s fractional corporate development management through the lens of an operator. Our Pre-sale Operational Excellence Service is specifically aimed at owners wishing to exit their business in two years time.
Always open for a conversation Ian@TPPBoston.com