8 Key Elements to Craft a Perfectly Sellable Business with Jason Swenk
Nov 7, 2023
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Jason Swenk, expert in making agencies attractive to potential buyers, shares invaluable advice on enhancing agency value and understanding key performance indicators (KPIs). He discusses client transferability, earn-outs, distinguishing your business as a market maker, automating KPIs, and achieving predictable revenue. Whether selling or scaling your agency, this episode equips you with strategic wisdom and practical tips for success.
A clear vision and focus on a specific industry are crucial for business success and better decision-making.
Diverse channels for generating business ensure a steady flow of new clients, including inbound, outbound, and strategic partnerships.
Building a business with predictable revenue involves offering smaller projects that lead to long-term retainers, establishing trust with clients and increasing recurring revenue.
Having a diverse client base, without relying heavily on a single client, reduces risk and dependency, ensuring stability and sustainability.
Deep dives
Clear Vision and Niche Focus
Having a clear vision and focusing on a specific industry is crucial for a business to succeed. It allows for better decision-making and empowers the team to work towards a common goal.
Multiple Channels for Acquiring Business
Having diverse channels for generating business, such as inbound, outbound, and strategic partnerships, ensures a steady and reliable flow of new clients.
Predictable and Compounding Revenue
Building a business with predictable and compounding revenue involves creating offers that start with smaller projects or foot-in-the-door offers, leading to long-term retainers. This helps establish trust with clients and increases the recurring revenue.
Diverse Client Base
Having a diverse client base with no single client accounting for more than 20% of the revenue reduces risk and dependency on a single client.
Good Operators for Marketing, Sales, and Delivery
Having skilled individuals in key operational roles ensures efficient and effective execution of marketing, sales, and service delivery, allowing the business to run smoothly.
Profitable and Growing
Being highly profitable with consistent growth increases the value and attractiveness of the business. EBITDA plays a significant role in determining the valuation of the business.
Automated KPI Tracking
Implementing automated tracking and monitoring of key performance indicators (KPIs) provides visibility into the health and performance of the business, facilitating quick and informed decision-making.
Audited Financials
Having audited financials adds credibility to the business and provides accurate insight into the financial health and performance, which is essential in a potential sale or acquisition.
Jason Swenk dives into the art of making an agency attractive to potential buyers, discussing the intricacies of client transferability and the often-overlooked details of earn-outs. He shares invaluable advice on enhancing your agency's value, from distinguishing your business as a market maker to understanding and automating key performance indicators (KPIs). Whether you're considering selling your agency or aiming to scale it, this conversation is packed with strategic wisdom and practical tips that will equip you for success.
Chapters:
00:00:00 - Reflecting on Creative Marketing Strategies and Business Acumen
00:03:33 - Attracting Attention Strategically: From Annoyance to Engagement
00:06:48 - Personalized Networking on Twitter: Seizing Business Opportunities
00:11:57 - Identifying Sellable Assets Across Diverse Businesses
00:13:00 - Crafting a Sellable Asset: The Solar Velocity Journey
00:15:39 - Capitalizing on Investment Opportunities and Tax Advantages in Ownership
00:17:55 - The Significance of Transferable Contracts in Business Transactions
00:20:04 - Communicating Your Business Vision and Targeting Niche Markets
00:24:37 - Achieving Predictable Revenue: The Path to a Growing Business
00:26:25 - Predictable Revenue and Adapting Business Offerings
00:31:47 - Becoming an Advisor for Sustainable Business Success
00:35:00 - Profitability and Growth Metrics in the Agency Business
00:36:32 - Navigating Valuation Dynamics: Multiples and Unicorns in Today's Market
00:38:22 - Harnessing Key Performance Indicators (KPIs) for Sales and Departments
00:41:22 - Strategically Building a Business with Sale Potential: The Roadmap to Success
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