Advice That All New Business Owners Need to Know

The lyric “I wish that I knew what I know now” from the band Faces from the 1970s is a sentiment that several experienced business entrepreneurs would resonate with.

Numerous individuals aspire to become entrepreneurs, which is a commendable financial objective. However, most new entrepreneurs and even seasoned professionals can undermine their heroic performance by making common blunders.

Once you’re prepared to pull up your sleeves and launch your new company, consider following the various pieces of advice from industry experts. Entrepreneurs invariably learn numerous insights on expanding and managing a firm more successfully for an extended period of operation.

Fortunately, a lot of these entrepreneurs are eager to impart their knowledge. One such amazing and successful business owner is Michelle Sieler – whose advice we will explore in this article. So, let’s start.

Know The Advice From Michelle Sieler For New Business Owners

In the interview, Michelle shared some fascinating and highly beneficial insights on establishing, scaling, expanding, growing, and preparing your new business for a profitable exit. Here are the pieces of advice she gave on achieving a lucrative exit:

Start Working On Your Exit Strategy From The Very Beginning

Michelle is more fond of explaining things with her ST GPS Exit Model. She believes it is the most effective method for doing this. She exclaims that all business owners must follow the exit model’s step-by-step instructions to start building their companies from scratch.

One can use it to form the foundation for their business’s growth, expansion, and sale. She also says that it will assist you in maintaining your attention on what matters, namely your intended outcome. Her exit model looks like this:

• Know and stay focused on your destination: Your destination should be the price at which you want to make the sale. She asks us to consider the desired sales price to be $20 million.
• Be sure of your current location: Your current location is your latest, updated business worth, which she asked to assume to be $5 million.

Michelle says that you’ll at least need to wait for ten years to make this sale. Then, she advises every business owner to identify their ideal buyer. There are some types of buyers, and to make things simpler for businesses, she advised on who will never be your buyer.

• First-time buyers: They will only prefer to buy small businesses due to their tight working capital and lack of industry expertise and handling large-scale operations.
• Turnaround specialists: They only prefer to purchase distressed assets, so approaching them would be a waste of time.
• Equity Groups: Michelle says that they solely prefer to buy based-upon platforms. Also, you’ll need an e-bit of a minimum of one million dollars for them just to convince them to consider your business for sale.
• Strategic competitors: Michelle continues to share that your rivals can be your buyer too. Surprisingly, they are often the highest paying buyer as they not only buy a business but synergies.

Learn All About The 6Ps Method From The Expert Herself

The six pistons that any company must run on are referred to as the ST 6 Ps,’ says Michelle. These are indeed the qualities that each and every buyer seeks through a company and are necessary for developing a viable, profitable, and tradable corporation.

You may increase the worth of your company when it is time to sell by constructing it around the six Ps. The following are the six Ps stated by Michelle:

People:

Entrepreneurs must assess their workforce to ensure the correct individuals are occupying the appropriate positions. You could now address the WHO query afterwards. Who handles law, customer support, and financial reporting? The owner shouldn’t be near the individual in this situation, which is crucial. The company needs a leadership tier so it can function without the entrepreneur.

Product:

Consider if the sector you work in is flourishing or declining. Do your goods and services fill a specific need? Shoppers are wary of investing in a company whose goods or services can become outdated soon.

Process:

Although procedures are frequently disregarded, they shouldn’t be. From the customers’ perspective, they could either help or hinder your company. The user experience must be considered when designing your procedures. Are they productive, efficient, and well-documented? Your organization will expand rapidly if you’re able to streamline your operations.

Proprietary:

Intellectual proprietary, often known as proprietary properties, can be one of your company’s largest financial indicators. “Do you possess any original works?” (Traces, copyrights, datasets, agreements, property investment with IP, etc.) She addresses the new business owners.

Patrons:

Perhaps the most crucial component of every organization is its clientele. This is true since clients generate income for your company. It is crucial to maintain a diverse, devoted clientele. Your firm will run out of gasoline if there are no consumers to fuel it.

Profits:

The much more fundamental P is profit. This is because your business cannot survive without revenues. EBITDA (Earnings before interest, taxes, depreciation, and amortization):

Does your company generate more than or less than $1 million in this category? Does your company have various compatible income and cash flow sources? But remember that revenues aren’t the issue; instead, they are indeed a sign that the remaining 5 Ps aren’t being prioritized.

Perhaps the advice and inspiring methods from one of the most famous business owners, Michelle, will change you forever.

Discover More Ways To Effectively Kickstart & Sale Your New Business With Emeritus

Whether you want to take your new business to the height of excellence or just want it to scale and grow enough to get a reasonable sales price at the time of exit, you’ll need expert advice on every step to make the best decisions in your favour.

For such expert-level assistance, enrol in an executive leadership course of your choice from one of India’s top-ranked B-Schools and available on the Emeritus India platform. From leadership skill training to multiple business strategies, learn everything from the best faculty at Emeritus India. Start your upskilling journey today!