As an entrepreneur and business owner, there comes a time when you feel the need to sell the business you have been building all these years; years of unwavering dedication, hard work, and sacrifice to get your business where it is today. Perhaps it’s time to move on to something else. If you are thinking of selling your business, it can certainly pay off in a big way. According to A Neumann & Associates, LLC, business brokers help their clients sell their businesses by determining the market value of their company and finding qualified buyers who have the capital to make a deal. Here are five reasons why a business owner would sell their business and how you may fit in one or more of these categories.
Risk Assessment too High
Maybe your risk assessment is too high, and therefore, continuing to run your business is just too unpredictable. This is most likely influenced by dwindling sales figures, or you just barely break even each month and want the weight off your shoulders. You probably felt the last couple of years was like hanging on by a thread, and you may be uncertain how long business operations can hold together. This is the perfect opportunity to move on because the longer you hold on, the riskier it can get, and you don’t want the volatility of running a business to affect your financial goals. You can transfer the risk to a willing buyer who can take control of the business and maybe turn it around.
Preparing for Retirement
Wanting to retire is a reason to sell your business that you’ve spent decades building, growing, and nurturing. By now, your business has generated plenty of revenue over its years of operation, so you can cash out and use that hard-earned money for your retirement. Selling your business can provide the retirement plan you’ve always dreamed of, and you can use that money to fuel a lavish and laid-back lifestyle.
Sudden Life Changes
Unexpected events can happen that can affect an entire business, such as economic hardships and abrupt market changes. Or perhaps, changes in your personal life are urging you to sell your business. Maybe your health took a turn for the worst and is affecting your productivity and performance, in which case, turning over the keys to your business to someone else may be the right option.
Transferring the Business to Someone more Capable
When it’s time to hand over the keys to your business to someone else, you want a qualified buyer who has the capital and industry knowledge to keep the business alive. If your business is doing well, profits are growing, and sales look stable, the likelihood that your business will sell exponentially increases. A business is most valuable when its profits are increasing year by year, which is very appealing for potential buyers. In addition, if the economy is doing well and the buyers’ market is looking favorable, you can get offered prices that are too enticing to refuse. Buyers can be compelled to go on bidding wars for your business, and you can evaluate which bidder is the most appealing to you.
The Need for Liquid Cash
Perhaps you need cash right away, and you don’t necessarily want to operate the business anymore; that’s okay. There are many reasons to liquidate your business; maybe you need cash to travel around the world, devote time to a new hobby, start a new company, pay off medical bills, or another scenario. Whichever the reason, selling your business can provide you with liquid capital to accomplish the items on your to-do list. In some rare instances, a potential buyer may like a certain aspect of your business and may offer you an amount that is many times more than its base market value. It can definitely happen, and if it does, you will be glad you sold your business. After all, with all that liquid cash you will be sitting on, paying off your mortgage would be easier than ever. Perhaps moving to a new location is something you want to do, or even become an investor and fund startups.
Native video ads have a greater impact than video ads on social and video platforms, a new study from Kantar reported. The Multichannel Brand Impact study measured video ad effectiveness for brand goals in native environments against other environments.
Favorability. Participants in the study gave a favorable rating 59% of the time when exposed to a native video ad. That number dropped to 50% on social platforms and 51% in a video platform environment.
Awareness. 33% of participants displayed top-of-mind awareness about a brand when shown a native video ad. This displayed a marked improvement over the control group, which only had 14% top-of-mind awareness.
When native video was combined with social video ads, the awareness climbed to 49%.
Impact of native ads. Taboola, which sells content discovery and native advertising products, sponsored the study.
“With industry estimates indicating that video advertising in the U.S. will reach nearly $50B this year, brands have a lot of opportunities to influence customers, as long as they’re choosing the right platforms and mix of platforms to relay their messages,” said Taboola CEO and founder Adam Singolda, in a company release.
Why we care. Social media is where consumers receive word-of-mouth recommendations from family and friends. Still a potent source of brand impact for marketers. But social is also a highly contentious space for politics and other turnoffs. It’s not the ace in the hole it once was, and should be complemented with other native environments in a digital video campaign.
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About The Author
Chris Wood draws on over 15 years of reporting experience as a B2B editor and journalist. At DMN, he served as associate editor, offering original analysis on the evolving marketing tech landscape. He has interviewed leaders in tech and policy, from Canva CEO Melanie Perkins, to former Cisco CEO John Chambers, and Vivek Kundra, appointed by Barack Obama as the country’s first federal CIO. He is especially interested in how new technologies, including voice and blockchain, are disrupting the marketing world as we know it. In 2019, he moderated a panel on “innovation theater” at Fintech Inn, in Vilnius. In addition to his marketing-focused reporting in industry trades like Robotics Trends, Modern Brewery Age and AdNation News, Wood has also written for KIRKUS, and contributes fiction, criticism and poetry to several leading book blogs. He studied English at Fairfield University, and was born in Springfield, Massachusetts. He lives in New York.
Summer’s here and the shoppers are wary. Consumer spending increased in May, but only by 0.2%, according to the Bureau of Economic Analysis. This explains why 76% of U.S. shoppers are searching online for reviews and better prices before buying in store, according to a new Adobe Commerce study of sentiment among over 1,000 U.S. consumers. Also, when they’re in a store 60% are using their phone to look for better prices elsewhere.
Another sign of the slowing economy: 24% say they won’t be able to take advantage of big summer holiday sales because they have less discretionary money to spend due to inflation and the higher cost of goods.
On the good news side: 76% of those planning to participate in summer sales say they’ll spend more or the same amount as last year. And the motivation varies — more than half (56%) of consumers say they save money by shopping on Prime Day and other sales events, while others want to get ahead of their seasonal holiday (32%) and back-to-school shopping (23%).
However, most of those who intend to buy don’t believe big retailers’ promises of deeper discounts because of overstocking. Almost 65% expect discounts to be smaller than last year.
61% said receiving personalized promotions or recommendations will make them more likely to make a purchase.
43% said they are more likely to purchase from a retailer that offers buy now, pay later.
72% want the online purchases delivered the same day or via two-day shipping.
50% are now more likely to make retail purchases on their phones, 26% prefer in-store shopping and 24% prefer shopping via their computer
57% search for and buy products online if they can’t find them in stores.
Why we care. Inflation and higher interest rates are, as expected, taking an increased toll on consumer spending. That makes marketing more important than ever, via activities like personalization and customer experience. That should also include offering payment options like buy now, pay later. People are used to putting everything on a credit card, but interest rates are making that less attractive to them.
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About The Author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
We recently introduced you to Agile Marketing Navigator, a flexible framework for navigating agile marketing for marketers, by marketers in the article A new way to navigate agile marketing. The navigator has four major components: Collaborative Planning Workshop, Launch Cycle, Key Practices and Roles. Within these categories, there are several sub-pieces for implementation. In recent articles, we covered the pieces in the first stop of the navigator, the Collaborative Planning Workshop.
Now we’re going to dive into the next stop on your agile marketing journey — the Launch Cycle. The Launch Cycle is a repeatable cadence for delivering valuable marketing experiences early and often. Within the Launch Cycle there are five key components — Marketing Backlog, Cycle Planning, Daily Huddle, Team Showcase and Team Improvement. If you’re familiar with the Scrum framework, there are a lot of similarities here — with a few different nuances to make it more applicable to marketers.
Building and managing an effective Marketing Backlog
Now, let’s dive into the Marketing Backlog and some tips and tricks for marketers to be most effective.
The Marketing Backlog is an ordered list of prioritized work that the agile team will pull from to work on in their Launch Cycle. The backlog is emergent, not static, and changes as new information is learned.
This part of the framework is incredibly important and can have a major impact on how marketers work. First of all, there’s one shared place where all work lives. This avoids work happening “behind the scenes” that no one knows about.
In fact, one client that I worked with took all of the work that was already assigned to stakeholders, put it in a single backlog and realized that it would take five years to deliver! It’s with this level of transparency that teams and leaders can begin to visualize everything the team is doing and start to really understand what’s important and what may just be someone’s pet project.
There are many tools for managing your marketing backlog and they all have their pros and cons. The main thing to watch out for is ensuring that everyone on the team, as well as stakeholders have access. We want to build a transparent system.
If you’ve started with the Collaborative Planning Workshop, you’ve already begun to build out the Marketing Backlog. The items in your Minimally Viable Launch will go near the top, and other items will fall below. Work is never guaranteed until the team starts working on it, and even then sound business reasons could cause them to pivot, although that shouldn’t be the norm.
Prioritizing the backlog is one of the key responsibilities of the Marketing Owner. While they don’t do this in a vacuum and conversations with stakeholders are imperative, this role has the ultimate authority to decide what order the team will work on and which items won’t be considered (there are always way more good ideas than time).
The role of the Marketing Owner
The Marketing Owner needs to really understand the business value that each idea brings. Each marketing backlog should be thought of in terms of:
Level of effort it will take the team to complete (let’s face it — all things aren’t created equal. Building a Tesla may take longer than a base model Honda, so think through marketing ideas as well).
What value does it bring to customers? Joy? Satisfaction? Solves a problem? Addresses a cause?
What will the business gain from this idea, and how does it tie to business goals, KPIs and revenue?
Stakeholders, customers and team members should all be thinking about new ideas all of the time and everyone is invited to submit ideas to the backlog. However, it’s at the Marketing Owner’s discretion to decide which ideas will be worked on by the team and when.
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Work should never be directly assigned to a team member in agile marketing. It should be submitted to the backlog or discussed with the marketing owner as it needs to be visible and prioritized among everything else.
In agile marketing, backlog items should be used to test and learn and are thought of as micro-experiments, rather than large campaign blasts.
While a backlog item may be for a post on Facebook, the team should be thinking in terms of testing elements, such as content. If the content is successful, similar content pieces would be on the backlog. However, if the content doesn’t perform well, the team would want to think of new backlog items with different content.
Catch up on the Agile Marketing Navigator series!
The backlog may contain some business as usual items to keep the lights on, but the majority of items should be small, testable experiments that can quickly get to customers for real-time feedback.
If you haven’t started a marketing backlog yet, what are you waiting for?
Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.
About The Author
Stacey knows what it’s like to be a marketer, after all, she’s one of the few agile coaches and trainers that got her start there. After graduating from journalism school, she worked as a content writer, strategist, director and adjunct marketing professor. She became passionate about agile as a better way to work in 2012 when she experimented with it for an ad agency client. Since then she has been a scrum master, agile coach and has helped with numerous agile transformations with teams across the globe. Stacey speaks at several agile conferences, has more certs to her name than she can remember and loves to practice agile at home with her family. As a lifelong Minnesotan, she recently relocated to North Carolina where she’s busy learning how to cook grits and say “y’all.”