Selling For Millions – The Top 10 Essentials For A High Company Valuation

It’s a common aim for entrepreneurs when they start their business. Building it up and selling it for at least a million, or maybe even multiple millions.

It’s certainly possible and many people have achieved the magic number but for every one that does there are thousands who never make it even close and never quite work out why. So what are the common factors in a multi-million pound sale? Here are the top 10 factors that contribute towards achieving that goal.

1. Multi-Million Sales And Profits

It may be obvious but this is the traditional and still the best real way to achieve a multi-million exit. That’s not to say it’s easy, you need to work hard to get to one million’s worth of sales and even harder to get to the next ten million. However, if you can achieve multi-million pound profits then your chances of a multi-million sale of your company are greatly enhanced, although still not guaranteed as it depends on the type of business you’re in.

2. A Very Scalable Business

When a buyer is looking to acquire a business they are looking for the future potential that will come from that company. The price they pay is a reflection of what they expect the future returns from the business to be. This means that the greater the potential of your business the greater the value. And the most important element in that potential is how easily the business can grow, its scalability. If your business is wholly dependent on you doing all the work because you have very specialist skills then there is a definite restriction on how much the business can grow as you only have 24 hours in the day. If you have a product or service that can be easily replicated at a low cost (e.g. software) then the company can grow far more easily with limited additional expenditure. This makes your company much more valuable because it has far greater potential for growth.

3. Valuable IPR

Businesses that achieve high valuations often have very strong Intellectual Property Rights (IPR). These are the patents, copyright, trademarks and legally protected inventions and brands that the company holds. If you have intellectual property that is legally protected so that other companies can’t easily copy it, then you benefit from scarcity value. If you have good IPR then it means customers have to come to you for the product or service, which makes what you’re selling more valuable. Large corporations and VCs like to acquire strong IPR with a company as it gives a greater justification if a high price is paid and it gives them exclusive access to the rights. It can be tough to achieve the higher valuations you want without IPR.

4. A Desirable Customer Base

Sometimes a company is bought simply to provide the buying company with access to the customer base. The alternative is for the buyer to generate the sales and customer base themselves but this takes time. If you have a loyal customer base of regular, high spending, credit worthy clients, then the value of your business is significantly enhanced. A buyer will be looking to see what value they can get from selling their products and services to your customers and they will also have expectations of increasing the value of sales to those customers. And that could mean millions for them and for you.

5. A Hot Sector That’s In Demand

This can be one of the best ways of achieving a high sales value but it’s very challenging to get the right sector at the right time and find the right buyer. For all the Facebooks and Bebos that get it right, there are many thousand also-rans who didn’t catch the market’s imagination. It’s not necessarily about being first but it’s about being early, fast growing and getting attention from the right people.

6. A Great Brand

If your company has spent significant time and money generating a very strong brand in the market and your brand name is the first one that people think of in your sector, then your chances of a high price sale increase significantly. Brands have huge value to businesses as they can keep customers coming back, through brand loyalty, and attract new customers, through brand recognition. The brand may be the most popular or it may be associated with high value, bringing higher value customers with it. Again, it can be a challenge to create a really strong brand but if you succeed the value can be huge.

7. Exclusive Rights

If your company has the exclusive, legally enforceable, rights to a territory then they can be worth a significant amount to a buyer. If your competitors can’t break into a particular geographic market because you have an agreement with a supplier that no-one else can sell their products or services in that territory then they will often want to buy you simply to gain that access. The alternative for a competitor could be that they have to ignore that whole territory or country which could bring down their own valuation. Whilst you should never over-pay (ideally you shouldn’t pay much at all) for exclusive rights, they are well worth having if you can agree them.

8. Highly Successful Marketing & PR

Sometimes a business achieves a high valuation purely on what appears to be hype and promotion. This is about being in the public domain and getting noticed. It’s certainly a lot harder to achieve a multi-million pound exit when no-one has heard of you. Of course, if you really want to get all the way to completing an exit you will ideally need to have a decent business to back-up the marketing, although it’s been achieved before without much substance. Getting your company known through marketing and PR should be a natural goal of the business anyway, as it generally allows you to sell more if done properly. However, it can be a dangerous route to start marketing programs just to gain the attention of people who might want to buy your company and you should always carefully measure the effectiveness of any campaign.

9. A Great Balance Sheet

If your business has a very strong balance sheet, with lots of assets and not so many liabilities, then you can achieve a multi-million sale of the business just on that basis. Generally, this will mean that you have achieved one or more of the other options in this list already, particularly the high sales and profits one. Another way of looking at this is that you are less likely to walk away with a multi-million deal if you have a very weak balance sheet that is burdened with debt. If you’ve had to borrow a huge amount to get your business to its current state then when you sell you can easily find all the money just goes to pay back the debt and you’re left with very little in the end. The stronger your balance sheet, the better your chances of a good deal that pays your millions when you sell.

10. Something To Plug The Gap In A Large Corporate

This covers a few of the previous factors because it really comes down to a large company asking themselves whether it would be best to spend the time and money to build up a customer base, brand, IPR and revenue stream themselves or whether it is better to just buy it ready made. Generally, this solution works for niche businesses that focus in a very specific area. Large companies will often conduct strategy reviews that look at how they are serving their customer base with a particular set of products or services. This will often give rise to a gap in the service offering that they will want to fill to provide a full service. If you have the business that fills that gap and you can get yourself in front of them, there can certainly be a multiple million sale on the cards.

Overall, all these factors will benefit your business whether you want to achieve a multi-million sale of your business, whether you want to create a great lifestyle business or whether you just want to create something you can be proud of. And on the way it will allow you to create jobs, boost the economy and benefit your local community. And if you sell for a large sum, just think of all the good you could do with that, along with maybe just a few small treats for yourself.

Dissecting Pre-Paid Legal Ripoff Rumors – Does a Pre-Paid Legal Ripoff Really Exist?

In the age of the internet, it’s often tough to sort through legitimate companies from pure ripoffs. This article aims to explain the good and bad elements of the popular network marketing company, Pre-Paid Legal. Ultimately, is there a scheme behind the Pre-Paid Legal ripoff rumors? Or is this a company that can be trusted?

Who’s Behind Pre-Paid Legal

The company was founded in 1972 by a man named Harland C. Stonecipher in Oklahoma. Since inception, it’s dealt with a variety of company lawsuits, and most recently, a buyout by MidOcean Partners, a private equity firm in New York. The New York Times reported that this acquisition cost MidOcean around $650 million, and happened in 2011 after Stonecipher stepped down from his role as chief executive.

Amidst a continuing investigation by the Securities and Exchange Commission concerning membership information and the reasons behind Stonecipher’s resignation, it’s tough to take an unbiased look at the company and opportunity they provide.

True or False? The Pre-Paid Legal Ripoff

But it’s not all gloom and doom for PPL. The company currently serves over 1.4 million families in both the United States and Canada, helping people find and retain attorneys for legal matters like real estate transactions, wills and estate planning, mortgage refinancing, moving traffic violations, creditor trouble, inadequate health care, and automobile or property damage. They currently ’employ’ thousands of representatives in the United States.

Pre-Paid Legal Ripoff Rumors Laid to Rest

The bottom line concerning legitimacy is this: if the company were performing illegal actions, or were in fact operating as a pyramid scheme, they would be charged for such occurrences and taken out of business. And based on the fact that MidOcean recently purchased the company for a large amount of money, it’s tough to think that PPL is on the outs.

The biggest question for network marketers, instead, should be about their investment in the company, and whether it makes sense for them to join. While there is no such thing as the “Pre-Paid Legal ripoff,” it’s still important to evaluate an opportunity and your ability to create real wealth with a home based business.

One big issue many new network marketers have is how to market, and who to market to. Luckily, there are a lot of resources on the web that can help new network marketers manage this. Learning all aspects of internet marketing, like SEO, driving traffic, setting up an effective website and opt-in, and generating high quality leads are all things that network marketers need to know. They aren’t tough to learn, but it requires a bit of patience and time spent reviewing the right materials in order to build a successful network marketing business with a company like PPL.

How to Get Legal Transcription Jobs and General Transcription Jobs

There are plenty of transcription job opportunities for you out there if you are willing enough to spend time and effort to put in the work. You cannot expect to earn a lot of money doing nothing. The good thing about doing general and legal transcription jobs from home is that you actually get to choose how much work to take in and what working hours you want to keep. This gives you time to spend with your family and to do other things that you want to do. If you are looking for a good way to earn a living from your home, doing transcription work could be just the work from home opportunity that you need.

You can get more information about how to get transcription jobs through the internet. In most cases, you would not have to have specialized training in order to get into transcription. There are, however, some types of transcription work that require knowledge of terminologies and understanding of processes with regard to the medical and the legal fields. General transcription work would normally have less restrictive requirements and will allow you to start getting jobs as soon as you pass your transcription test.

You have to be able to get connected with companies needing to outsource their transcription requirements if you are to start getting general and legal transcription jobs. It is not that easy to find which one of the millions of companies around the world are outsourcing their transcription jobs. While a job search online would yield you several options, it would be tricky to weed out the legitimate offers from scams on your own. Others who have been duped by these scams just chalk up these scams as one for experience. You do not necessarily have to go through this. There are resources that you can turn to in order to avoid these scams.

If a particular site promises you millions in earnings doing transcription work in exchange for a large sum of money you invest in their account, this should be a clear warning signal for you. There is no way through which you can earn millions in a snap doing general and legal transcription jobs. You do get compensated enough for the kind of work that you turn in when you do transcription work. The more satisfied clients you have, the more repeat businesses you will most probably get, and the more money you will earn. Find out how you can avoid these scams, how to get online medical transcription training and how to get transcription jobs without specialized training.