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.

PrePaid Legal Leads – An Overview of Generating PrePaid Legal Leads

Pre-Paid Legal is a company founded in 1972 which provides the everyday person with a variety of legal services for a low monthly fee. The company states that because 71% of American households needed legal assistance in the past 12 months, their services help decrease the costs of expensive legal fees by providing a monthly fee and service guarantee to their clients.

In addition, Pre-Paid Legal offers a network marketing opportunity for those looking to create a home based business.

One of the biggest issues for network marketers is determining where to get leads for their new business. Both seasoned and novice marketers often rely upon friends and family to begin their business, and once their “warm market” is completely tapped, they get frustrated, and oftentimes, quit. This article aims to describe the opportunity with a company like Pre-Paid Legal, and also discuss the various ways that Pre-Paid Legal leads can be obtained by any network marketer.

How Pre-Paid Legal Works

Pre-Paid Legal works much like medical reimbursement plans or HMO’s. “Members” purchase a legal expense plan for around $26 per month, and receive access to legal services. Right now, the company serves about 1.4 million families in North America.

Network marketers can join the opportunity by investing $249 into the company. In return, reps are give sales aids and support, field training, home office support, marketing supplies, and online associate services.

How to Get Pre-Paid Legal Leads

Although joining the opportunity is fairly low-cost, one of the biggest questions that new network marketers end up asking themselves is, “How can I recruit more members into my downline to really make money?”

It’s true that you need to build a deep network of representatives to make this type of opportunity worth your while. But how can you reach these untapped markets of people who wish to be home-based entrepreneurs?

First, it’s important to understand the difference in paid and unpaid leads. Paid leads can be purchased in bulk from lead-generating companies. This can be a good option for extremely busy people with plenty of capital. But the danger of paid leads is that you never know where they came from, or how they were generated. There have been may horror stories of network marketers forking over big bucks for leads, only to learn that those leads weren’t warm, or they had already been tapped several times by network marketers before. That’s simply a waste of time and money.

Getting leads yourself depends on a few things. First is a strong web presence and an understanding of basic SEO and traffic driving. Second is fantastic web design. Once people find your site, getting them to opt-in with a great site design and incredible offer is key. A third element is social media, blogging, and forums. Becoming a part of an online community is a great way to spread word-of-mouth about your opportunity, and reach out to those who are looking for an opportunity like yours.

Ultimately, most newcomers (and even seasoned reps) struggle with lead generation, and it truly is one of the most important aspects of building a successful network marketing business. But it’s possible to learn these skills and build up the techniques necessary to create high quality leads yourself. By leveraging your online presence, you can learn to reach thousands of people each day and add representatives into a profitable downline.

Investing $1 Million Dollars That You Do Not Have Yet

Why would you want to try and invest $1 million dollars that you do not as yet even have? Is it even legal? If you don’t have $1 million dollars how are you going to invest it anyway? The answers to all these intriguing questions and more can be found in this article, so read on…

First of all to answer the “why”

For the return of course. If you were able to invest $1 million dollars, even a 5% return would equal $50,000 dollars. Getting a 5% return is not exactly a difficult thing, you could simply put the million in a bank for a year and receive that $50,000 profit.

When considering wealth building strategies and your financial goals, a creative approach is sometimes necessary to create the returns we seek and borrowing a million dollars is one way to increase our returns. There is however, a problem. If you did find someone willing to lend you $1 million dollars, they would without a single doubt expect a return for the time frame you have borrowed that million, usually along the lines of what a bank would charge which would be in the single digits percentage.

Clearly if that is the case, we are backed to the wall, because the profit we expected from that million just transferred to the owner of the million leaving us with a futile look on our face. But what if, instead of you borrowing a million in cash, you legally borrowed equity or value.

This would be a different twist on the same concept. Let us say, we look in the local paper and found a riverfront mansion for $1.2 million dollars. You have kept your eye on the upper market for riverfront mansions and have concluded, that this house is being offered for sale cheap. It could easily fetch $1.4 or even $1.6 million because it has a boat harbor and also 20 rooms and well maintained gardens.

This value that you see and the remaining opportunity to collect a further $200,000 to $400,000 dollars on your insight about the true value of the house can be accessed and used to control the property for a short time. By using a legal instrument like an offer to buy.

Simply put, you place a token deposit and explain you have every intention to purchase on behalf of a buyer or friend, it is not their business what the actual arrangement is, all their side needs to know is that they are getting the possible opportunity to sell. You offer them what they are asking for the property and in the contract you may escape the contract if the new buyer decides he doesn’t want the house. In this way you can walk away if you fail to find a buyer at a higher price than the contract price. If you do find a buyer you can do a double close.

This is one way to borrow a million dollars and invest it for a return without actually having a million dollars in the first place.