May 29, 2023

12 Concepts We Can Learn About Creating Value From How2Exit's Interview W/ Mike Mausteller

12 Concepts We Can Learn About Creating Value  From How2Exit's Interview W/ Mike Mausteller

12 Concepts We Can Learn About Creating Value From How2Exit's Interview W/ Mike Mausteller - Watch Here

 

Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron

 

Concept 1: Maximize Business Value Through Promotion

Maximizing business value through promotion is a key factor in the success of any business. Promotion is an important tool in getting customers to buy products and services, and it can also be used to increase the value of a business. Mike Mausteller, a leader in the launch of brands such as Victoria's Secret's Pink and VSX, has a great deal of experience in accreditation, certifications, and education that can be used to propel the growth of small and medium-sized businesses.

In the podcast, Mike discusses the key value deterrents that can be filled in to maximize the proceeds of a sell of a business. He explains that when he was a buyer of ladies coats and outerwear, he loved everything new such as new launches, new products, and new marketing campaigns. After getting his MBA, he went to Victoria's Secret and worked on two concepts over a three-year period, which resulted in a $300 million business and a $1 billion business, respectively.

Mike explains that when launching a business, time is not the issue, it is the toolkit that is being used. He says that companies should focus on creating value, which starts with sales. He warns that too many retailers are looking for a quick dollar and are degrading the value of their brand through constant price breaks and promotions.

Promotion is a key factor in maximizing business value. Promotions can be used to attract customers and create a positive brand image. Companies should focus on creating value through promotions that offer customers something that they can't get elsewhere. This could include discounts, special offers, or free products. Additionally, companies should be careful not to overpromote and degrade the value of their brand.

In conclusion, promotion is a key factor in maximizing business value. Companies should focus on creating value through promotions that offer customers something that they can't get elsewhere. Additionally, companies should be careful not to overpromote and degrade the value of their brand. By following these tips, businesses can maximize their value and increase their chances of success.

Concept 2: Build Value, Don't Own a Job

The phrase “build value, don’t own a job” is an important concept for business owners to understand. Owning a job can be a difficult and tiring experience, and it can be difficult to sell a business when the owner is so heavily involved in the day-to-day operations. To achieve success, business owners must focus on building value in their business. This can be done by investing in developing leadership roles and responsibilities, delegating tasks, and creating a team that can help with the transition.

I recently had the pleasure of speaking with an experienced entrepreneur who has seen success in this area. He explained how he was able to take businesses that were worth nothing due to the owner’s heavy involvement and turn them into viable businesses. He did this by investing in developing leadership roles and responsibilities, and delegating to the point where the owner wasn’t putting out fires every day. This allowed the business to become more attractive to potential buyers.

The entrepreneur also discussed the Ohio Exit Planning Exchange, which he is the president of. This organization is dedicated to helping companies create value, not just individual sales. They provide educational resources and networking opportunities to help business owners create value and successfully transition their businesses.

Overall, it is important for business owners to focus on building value, rather than owning a job. Investing in developing leadership roles and responsibilities, delegating tasks, and creating a team to help with the transition can help make a business more attractive to potential buyers. Additionally, organizations like the Ohio Exit Planning Exchange can provide valuable resources and networking opportunities to help business owners create value and successfully transition their businesses.

Concept 3: Maximize Business Value Quickly

When a business owner comes to a lifestyle designer, they are trained to ask questions about the business owner's lifestyle, such as setting aside money for a passion project or retirement. They will then work with a wealth planner to determine the estimated value of the business. The wealth planner will also look at the business's financials, productivity, and the tenure of the team to see how it stands against industry competitors.

Using a business valuation tool like BizEquity, the wealth planner can assess the value of the business and determine if the owner needs to reduce their lifestyle by 20% or look at other options. If the business is worth less than the owner hopes, they can look at the "lowest hanging fruit" options, such as cleaning up the books, to maximize their value.

By taking the time to plan and invest in their business, owners can increase their business value and ensure a successful transition. They can also create jobs and provide for their employees, which is an important part of the process. With the right strategies and resources, businesses can maximize their value quickly and ensure a successful transition.

Concept 4: Understand Business Owner Needs

When it comes to understanding business owners' needs, it is important to remember that they are not just focused on the financial aspects of their business. They are also concerned with their lifestyle, the future of their business, and the legacy they leave behind. 

The first step in understanding business owner needs is to meet with a lifestyle specialist. This specialist can help business owners identify their goals and create a plan to reach them. They can also help them understand the value of their business and how to maximize it. They can also provide guidance on how to transition their business to the next generation, and how to ensure their legacy is preserved. 

Once business owners have identified their goals and created a plan, they can move on to the next step of understanding business owner needs: getting a business valuation. This is an important step that helps business owners understand the value of their business and how to maximize it. It also helps them understand the potential for growth and the risks associated with their business. This step can help business owners make informed decisions about the future of their business. 

Finally, business owners should create a step-by-step plan to transition their business to the next generation. This plan should include a timeline, a budget, and a strategy for succession. It is also important to ensure that the plan is tailored to the unique needs of the business owner. With a plan in place, business owners can be confident that their business will be successful and that their legacy will be preserved. 

By understanding business owner needs, owners can ensure a successful transition and maximize their business value. With the right resources and strategies, business owners can create a plan that is tailored to their unique needs and goals. With a plan in place, business owners can be confident that their business will be successful and that their legacy will be preserved.

Concept 5: Plan For The Future Of Employees

One of the most important elements of a successful transition is making sure that the future of the employees is taken into consideration. Business owners need to consider how their employees will be taken care of after the sale. It is important to ensure that their employees will be taken care of financially and that their jobs will be secure. This is especially important for family-owned businesses. When a family-owned business is sold, the employees may be uncertain about their future. Business owners need to make sure that their employees are taken care of and that their jobs will be secure.

Another important element of a successful transition is making sure that the business is in a position to be sold for the highest possible value. Business owners need to identify any potential “potholes” that could reduce the value of the business. These potholes may include a lack of financial controls, a lack of sales and marketing efforts, or a lack of a succession plan. Business owners need to take steps to address these potholes before they put the business on the market. This may include hiring a CFO or a sales manager, or creating a succession plan.

Finally, business owners need to make sure that their business is marketable. This means that the business needs to be attractive to potential buyers. Business owners need to ensure that their business is well-run and profitable, and that their financials are up to date. They also need to make sure that their business has a clear path to growth and that their customers are loyal.

By understanding and addressing the needs of their business and employees, business owners can ensure a successful transition and maximize the value of their business. With the right resources and strategies in place, business owners can create a plan that is tailored to their unique needs and goals. With a plan in place, business owners can be confident that their business will be successful and that their legacy will be preserved.

 Concept 6: Plan Ahead For Sale

In order to plan ahead for a sale, business owners need to be aware of the different factors that will influence the sale. This includes understanding their own needs, the needs of their employees, and the needs of potential buyers. Business owners need to consider the financials of their business, the market conditions, and the potential buyers. Additionally, they need to consider how their business will be positioned for sale and how to maximize the value of their business. 

Business owners should also consider the timeline for a sale. It is important to plan ahead and give yourself at least five years to prepare for a sale. This will allow you to improve the business, cut expenses, and show potential buyers the financials of the business over the last three years. 

In addition to the timeline, business owners should also consider the type of buyer they are looking for. For example, they may be looking for someone who will preserve the legacy of the business and keep the brand and employees intact. Alternatively, they may be looking for a buyer who is looking for a quick sale and is willing to pay a premium. 

Overall, planning ahead for a sale is essential for business owners to ensure a successful transition and maximize the value of their business. By understanding their own needs and the needs of potential buyers, business owners can create a plan that is tailored to their unique needs and goals. With the right resources and strategies in place, business owners can ensure that their legacy is preserved and that their business is successful.

Concept 7: Systemize For Higher Value

One key strategy for business owners is to systemize their business for higher value. When it comes to selling a business, buyers are most interested in a business that is systematized and has a strong track record of success. By implementing systems and processes that can be easily replicated and scaled, owners can ensure that their business is attractive to potential buyers. Additionally, having a system in place can help to ensure that the business runs smoothly and efficiently, resulting in higher profits and a higher valuation. 

Creating a systemized business also provides owners with the opportunity to create a long-term plan for their business. By understanding their own needs and the needs of potential buyers, business owners can create a plan that is tailored to their unique needs and goals. For example, if a business owner is planning to retire in the next few years, they can create a plan that allows them to gradually transition out of the business while still ensuring that their legacy is preserved. Additionally, if a business owner is looking to sell their business, they can create a plan that allows them to maximize the value of their business.

Finally, systemizing a business can help to ensure that the business is attractive to potential buyers. When it comes to selling a business, buyers are most interested in a business that is systematized and has a strong track record of success. By creating systems and processes that can be easily replicated and scaled, owners can ensure that their business is attractive to potential buyers. Additionally, having a system in place can help to ensure that the business runs smoothly and efficiently, resulting in higher profits and a higher valuation.

In conclusion, systemizing a business is essential for business owners to ensure a successful transition and maximize the value of their business. By understanding their own needs and the needs of potential buyers, business owners can create a plan that is tailored to their unique needs and goals. Additionally, systemizing a business can help to ensure that the business is attractive to potential buyers and that the business runs smoothly and efficiently. With the right resources and strategies in place, business owners can ensure that their legacy is preserved and that their business is successful.

Concept 8: Plan For Unexpected Events

No one can predict the future, and it is important for business owners to plan for unexpected events. Unexpected events, such as the death of a business owner, can have a significant impact on a business and can even lead to its closure. To prepare for unexpected events, business owners should create a plan that outlines the steps they need to take should something unexpected occur. This plan should include an operational agreement, which should outline the roles and responsibilities of all parties involved and specify who is authorized to make decisions and sign documents on behalf of the business. Additionally, business owners should consider appointing a successor, such as a family member or trusted employee, to take over the business in the event of an unexpected event. 

Business owners should also consider systemizing their business. Systemizing a business involves creating processes and procedures that will ensure the business runs smoothly and efficiently. This can include creating standard operating procedures, documenting processes, and creating systems for tracking and managing data. Systemizing a business can also involve creating a team structure and hiring a team of professionals to help manage and run the business. This can include hiring a CFO, accountant, bookkeeper, HR specialist, and legal compliance specialist. 

Finally, business owners should consider acquiring another business. Acquiring another business that is in the same vertical and has younger staff and better management can be a great way to transition out of a business. Additionally, business owners can consider using fractional teams, which can provide a team of professionals to run the business on a fractional basis while preparing it for sale.

Concept 9: Plan For Unexpected Risks

When it comes to planning for unexpected risks, business owners should take a proactive approach. This includes conducting due diligence and risk assessments to ensure that the business is in a strong position to handle any potential issues. Additionally, it is important to have key man policies and company owned life insurance policies in place to protect the business in the event of an unexpected death or disability. It is also important to have a buy-sell agreement in place to ensure that the business is protected in the event of a disagreement between owners.

Finally, business owners should consider having an operational agreement in place to ensure that all owners are on the same page. This agreement should include provisions for the transfer of ownership in the event of a disagreement or a change in the ownership structure. Additionally, having a succession plan in place can ensure that the business is prepared for any unexpected events.

In conclusion, planning for unexpected risks is an important part of running a successful business. Business owners should take a proactive approach to ensure that their business is in a strong position to handle any potential issues. This includes conducting due diligence and risk assessments, having key man policies and company owned life insurance policies in place, and having an operational agreement and succession plan in place. By taking these steps, business owners can ensure that their business is prepared for any unexpected risks.

Concept 10: Maintain Customer Loyalty

Maintaining customer loyalty is a key factor in the success of any business. Customers who are loyal to a business are more likely to purchase from them again, recommend them to friends and family, and provide positive feedback. This is why it is important for business owners to invest in strategies that will help them to retain their customers.

One way to ensure customer loyalty is by providing excellent customer service. Business owners should make sure that their customer service team is knowledgeable, friendly, and responsive. This can help to build trust with customers and make them more likely to return. Additionally, businesses should strive to provide quality products and services that meet or exceed customer expectations.

Another way to maintain customer loyalty is by offering incentives. Businesses should consider offering loyalty programs, discounts, or other rewards to their customers. This can help to encourage customers to keep returning and make them feel appreciated. Additionally, businesses should consider offering personalized customer service. This can include customizing products and services to meet customer needs or providing personalized discounts or offers.

Finally, businesses should also consider offering a subscription model. This can help to ensure that customers are receiving regular orders from the business. Additionally, businesses should look for ways to create a sense of community among their customers. This can include hosting events, providing online communities, or offering special discounts or offers.

By taking these steps, businesses can ensure that they are able to maintain customer loyalty. Doing so can help to ensure that customers keep returning and that businesses are able to remain successful.

Concept 11: Understand Buyer's Perspective

One key takeaway to remember when selling a business is to put yourself in the shoes of the buyer. Mike Mausteller, a business consultant, stresses this point. He states that when selling a business, “you cannot believe that everyone thinks like you. You have to think like potential buyers.” Doing this can help to ensure that the business is attractive to buyers. 

When selling a business, it is important to think about what potential buyers would need to see in order to be convinced to purchase it. Mausteller states that businesses should “stop thinking about what’s good for you and concentrate on if you were going to buy this and you are the most skeptical person in the world, because every buyer is.” This means that businesses should think about what they would need to see in order to be convinced to purchase the business. This could include financial statements, customer reviews, and other evidence of the business’s success. 

It is also important to remember that buyers may have different needs and priorities than the seller. For example, a buyer may be looking for a business that has a long-term lease in order to ensure stability. However, a seller may be tempted to sign a five-year lease in order to get a price break. Mausteller cautions against this, saying “don’t sign a five year lease for a price break. Not if somebody wants to shut it down.” This is an example of how it is important to think about the needs of potential buyers. 

By understanding the needs and priorities of potential buyers, businesses can ensure that they are able to attract customers and maintain customer loyalty. Doing so can help to ensure that businesses are able to remain successful. It is important to remember that buyers have different needs and priorities than the seller, and to think about what potential buyers would need to see in order to be convinced to purchase the business. Taking these steps can help to ensure that businesses are able to attract customers and maintain customer loyalty.

Concept 12: Set Goals, Take Action, Get Results

One way to ensure that businesses are able to attract customers and maintain customer loyalty is to set goals, take action, and get results. Setting goals helps businesses to identify what they want to achieve and how they plan to achieve it. Taking action helps businesses to implement the plans they have created to reach their goals. Finally, getting results helps businesses to measure their success and make adjustments as needed.

Setting goals is the first step in the process of setting, taking action, and getting results. Goals should be specific, measurable, achievable, relevant, and time-bound. This helps to ensure that businesses have a clear plan of what they want to achieve and how they plan to achieve it. Additionally, setting goals can help to ensure that businesses have a clear understanding of what they need to do to reach their goals.

Once goals have been set, businesses must take action in order to reach their goals. Taking action involves implementing the plans created to reach the goals. This can include creating a marketing strategy, developing a customer service plan, and creating a budget. Taking action is essential for businesses to reach their goals and ensure success.

Finally, getting results helps businesses to measure their success and make adjustments as needed. Getting results involves measuring the progress made towards reaching the goals. This can include tracking sales, customer satisfaction, and other metrics. By tracking progress and measuring results, businesses can identify areas of improvement and make adjustments as needed.

In conclusion, setting goals, taking action, and getting results are essential for businesses to be successful. Setting goals helps businesses to identify what they want to achieve and how they plan to achieve it. Taking action helps businesses to implement the plans they have created to reach their goals. Finally, getting results helps businesses to measure their success and make adjustments as needed. By setting goals, taking action, and getting results, businesses can ensure that they are able to attract customers and maintain customer loyalty.

 

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