Kim Neeson is an award-winning entrepreneur, executive leader and coach at Kim Neeson Consultancy.
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There is a myriad of considerations that come into play when thinking about the final exit strategy from your business. One of the questions you’ll ask yourself is: Who will be the buyer? While buyers can come from the most unlikely of places, chances are, for small- to medium-sized businesses, your buyer will likely come from your own industry. While every business has its competitors, there are ways to become a respected “name” in your sphere without giving away your secret sauce.
Make connections outside your competitive geographic area.
Attending industry events that put you in a room with other business owners who don’t compete with you can be a powerful way to become known. At an in-person conference, sit at a table where you don’t know everyone. Introduce yourself and strike up a conversation with a new person. You can do this in a breakout room when attending a virtual conference, too. Ask questions. Show your interest. Most people will, in turn, ask about you. Building up your network one person at a time can be a huge step toward meeting that potential buyer.
Another advantage of creating a network of non-competing colleagues is the dynamic may create a safe space for sharing of ideas, processes, marketing, etc. that most certainly would not take place with your competitor across the street. This is an effective strategy to grow your business and help it mature and evolve, and you can bring to your company a level of sophistication and best-in-class when you learn from others. Creating a savvy, organized and evolving company is an asset for a potential sale or succession down the road. Think value-add!
Industry events create interesting opportunities.
While statistics are hard to come by, speaking from personal experience, less than 10% of members of any given industry attend related conferences. One of the ways I was able to interest buyers was because I was a known quantity—through speaking, committee work, networking and sponsorships. An interesting fact: As a Canadian business owner in my sector, at times I was the only Canadian business owner in attendance at U.S. conferences. Talk about opportunity! While I never knew if I would ultimately be able to sell my business, I did know that being the only one in the room meant that if an American buyer went looking, I’d be the first one they’d talk to.
Contribute to your industry.
One of the best ways to meet others in your sector is through involvement and contribution to your industry or profession. Oftentimes the people who serve are the movers and shakers, the ones who make things happen. These are the people you want to know. That’s who you want to be. And these are the people who know other people who might just be interested in buying a business like yours.
Become the expert.
Another area in which to shine is becoming the go-to person in your area of work. By speaking, writing, hosting, blogging and contributing to social media platforms where your profession is represented (Facebook groups, LinkedIn, etc.) you can become the voice of experience and knowledge.
So, when potential buyers start Googling businesses like yours, all your various contributions help put you on page one of Google and thereby place you in front of your target audience. Additionally, as others in your business see and hear from you, your name can become synonymous with being a leader in your sector.
Join a business growth organization.
Becoming a member of one or more business growth organizations is a great way to meet business owners who are in different segments. Not only can you learn how to build a better business and position your company for a future sale, but your buyer may come from a related field; organizations such as GroYourBiz, Entrepreneurs' Organization, YPO, and Vistage—to name but a few—are places to meet, grow, evolve and maybe find your buyer.
In the end, you may never find your buyer. But these tips can help put your business in great shape for continuity: If, heaven forbid, you get hit by a bus and are laid up for six months, you'll have people in your camp who care about you and your company to help keep things afloat while you're unable to make appropriate decisions.
Best of all, you'll meet like-minded people who can understand your downs and maybe even give you that one piece of advice that makes the difference between your success and failure! Listen and watch for the gold nuggets within your industry—there is always something to be learned and implemented that will allow your business (and you) to grow and flourish.
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