27 minute read
Navigating a Recession
Immediate Steps for Scaling and Preparing a Business for a Profitable Exit
By Michelle Seiler Tucker
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Ihave spent over 20 years in the trenches specializing in buying, selling, fixing and growing businesses. When writing my first book in 2013, Sell Your Business for More Than Its Worth, I learned that 85-95% of all startups from 1-5 years are at great risk for going out of business, which is pretty common knowledge. However, when I wrote Exit Rich in 2019 and did the same research, I was flabbergasted at how drastically the business landscape had changed. Now, only 30% of startups will go out of business in the first 5 years. However, out of 27.6 million businesses, 70% will go out of business after being in business 10 years or longer.
You hear about the big box public companies, such as Kmart, JCPenney, Steinmart, etc. But what you don’t hear about are the small private businesses that are dropping like flies on every street, in every town, and in every state across our great nation. Many of these owners are baby boomers and are having to sell their business for pennies on the dollar, close their doors, or, even worse, file bankruptcy. Many of these owners will not only lose their business assets, but family assets as well as they commingle the two. These are sad and startling statistics that baby boomers are facing, as they have made huge sacrifices along the way to grow and maintain their business. Small business is the backbone of the US economy. If we don’t save small businesses, we would lose numerous jobs, causing spending power to decrease dramatically which could push us into a recession. However, it doesn’t have to be all negative news as there are more buyers for good businesses than there are good businesses to buy. The biggest mistake that business owners make is they do NOT plan their exit! They find themselves caught in the crossfire when a catastrophic event occurs. The current economic climate is far from optimal. Unemployment levels are high, the vast majority of the stock market is unstable, and there is a coin shortage. All signs point to the United States entering a recession. If businesses adhere to advice provided by Seiler Tucker and outlined in Exit Rich, you can rest assured that your business will not only survive, but will thrive during these unprecedented times. There are two key mechanisms through which an entrepreneur can keep their business afloat and exit rich. These include implementing the “Seiler Tucker GPS Exit Model” and making sure your company is operating on all six cylinders, or the “ST 6 Ps.”
The “ST GPS Exit Model” is extremely crucial for the success of a company. As Exit Rich notes, “Without a specific plan, the company will continue to wander along and the goal of selling at an optimal price will be gone.” As such, implementing a plan from the getgo is vital. Similar to a real-life GPS, the “ST GPS Exit Model” helps a business understand its current location and final destination. The model involves 5 steps. First, one must know their destination, their end game. Second, a business must evaluate its current location to derive its current value. Third, a business must determine who their buyers will be and build to suit these buyers’ criteria. Fourth, determine a timeframe to reach the company’s destination. And finally, a company must know its “WHY.” When a business follows these steps, they are far more likely to build a business that will be attractive to many buyers who are willing to pay top dollar for their business. It is of utmost importance that the GPS exit model is implemented even when operating during a recession. The model provides a framework for businesses to follow, thus preventing them from veering off the path and becoming a statistic. Beyond simply planning an exit, it is also imperative for businesses to make sure they are operating at an optimal level. They can
wire.”
Planning an exit can help a business avoid getting caught in the crossfire when a catastrophic event occurs.
ensure they are doing so by making sure they are functioning on all six cylinders, otherwise known as the “Seiler Tucker 6 Ps.” 1) People: Do you have the right team? Is your team composed of individuals that are ready to adapt, pivot and innovate? Under the circumstances of COVID-19, it is necessary that your employees are flexible and able to think outside the box, thus keeping the company afloat even during uncertain times.
Buyers want to buy a company with tenured employees and an excellent management team in place. 2) Product: The next step is thinking about your company’s product. Does your product have Continued on page 26
a niche or intellectual property? It should be refined and streamlined so that you can expand your brand across the market.
During COVID-19, competition is growing even more intense as companies vie for the same clientele, placing an even larger emphasis on having a superior product.
Buyers want to buy a business in a thriving industry, not dying. They want to ensure the company has multiple congruent revenue streams. 3) Process: Is your process efficient and productive? A great product can’t save a company that doesn’t have proven processes to market the product, collect payments due, or schedule meetings with clients. Buyers want to know that the engine under the hood of your company runs efficiently and isn’t held together with twine and baling wire. 4) Proprietary: Do you have intellectual property? (Brands, Patents, Trademarks,
Databases, Transferable Contracts in Place, etc.) As aforementioned, the competition in industries has grown more intense because of the coronavirus. Due to this, having a product with the rights to dominate an industry gives it a significant leg up when compared to other companies. 5) Patron: Do you have a loyal, diversified client base who will go out of their way to purchase your products and services? Having a loyal, diversified client base is difficult to maintain during a pandemic because money grows more and more scarce, leaving individuals on the hunt for the least expensive product.
Therefore, maintaining a strong customer base is vital to ensuring your company’s success. 6) Profit: Are you paying attention to your KPIs and operating at the highest profit margin for your specific industry? The coronavirus pandemic has put pressure on every industry, making it difficult for companies to squeeze out profits. During this time, it is essential for firms to evaluate their expenditures with a keen eye and cut costs wherever they can.
However, keep in mind that lack of profits are not the problem, but rather a symptom of not operating on all the “ST 6 Ps!” If you don’t have the right people in the right seats, it will cost you more money. If you’re in a dying industry, you will lose market share, causing profits to decrease. If your processes are not efficient and productive, it will cost you more in overhead to run your business which will also decrease profits. If you do not protect your IP, it will cost you dearly in legal battles and market share, again causing you to lose money. If your clients are aging out and you have customer attrition, your profits will also decrease. The only way to build and sustain profits is to drive your company on all 6 cylinders, on all the “ST 6 Ps!”
Remote Management Tips for the Home-based Business Owner
By Kishshana Palmer, CFRE, CGT
Here are three ways you can effectively manage your team as an entrepreneur working from home.
1. You’re officially in a long distance
relationship. And like a long distance relationship, your commitment is outsized because of proximity. Since you can’t slide down the hall and have a quick chat, communication — clear, honest and frequent — will help you keep a strong connection.
2. Like any relationship, your team members are looking to you to be
seen and heard. Working from home can seem like a vortex you go into but never escape from. I use tools like The 5 Love Languages to help identify what my team needs and how I can show appreciation for their work and who they are as people.
Whether it's checking in via Voxer just to tell them they are amazing (words of affirmation), sending them a lunch (acts of service) or an updated tech tool (hello gifts), being plugged in to what makes them tick shows you have your pulse on your team.
3. Take a beat to reassess, frequently. Involve your team in planning and
doing time. Move meetings beyond running the ‘to-do” list for the week and bring your team into your business. This is an opportunity to leverage your team's strengths and give them a runway to dream, think and do. This will do two things. Your team members will be able to operate in their zone of genius and will be able to think strategically without the pressure of results today. This is where innovation happens.
Kishshana Palmer has an 18-year background in fundraising, marketing, and talent management. She’s a supernova on any stage due to her charismatic and candid delivery. It doesn’t matter if she’s speaking about philanthropy, living your most authentic life, or diversity, the energy she brings to the stage is always entertaining and edifying. Kishshana is the founder of The Rooted Collaborative (https://therootedcollaborative.com) — a global online community for Women of Color in Fundraising. She's the author of "Hey, I'm New Here", and the host of the podcast Take it Offline. When an organization wants to grow, find and retain people on their team, and raise money, she is the philanthropic fairy godmother they have on speed dial. She is a NYC girl and mother of one wonderful teenage daughter. Visit https://kishshanaco.com.
It is unequivocally true that the coronavirus pandemic has taken a significant toll on our lives and businesses. It has been a public health crisis and moreover plunged the US economy into a recession. However, it is not all doom and gloom. Fortunately, it is possible for businesses to remain open if they adhere to the guidance provided in this article and learn how to PIVOT. Using these proven, trademarked methods will surely help all businesses to stay in business, even through something as detrimental as the COVID-19 pandemic. For more strategies and tips please visit exitrichbook.com.
Michelle Seiler Tucker (https://bit.ly/2KFQy62) is the author of EXIT RICH: The 6 P Method to Sell Your Business for Huge Profit (https://exitrichbook.com) and the Founder and CEO of Seiler Tucker Incorporated. She has sold hundreds of businesses to date and currently owns and operates several successful businesses. She is a leading authority on buying, selling, and improving businesses, as well as increasing business revenue streams. A formidable force in her industry, Michelle closes 98% of all offers she writes and, on average, obtains a 20 to 40% higher selling price for her clients. Her remarkable track record proves her persistence and dedication to creating win-win situations for both her buyers and sellers. She has appeared in Forbes, Inc., CNBC, and Fox Business. She has also been a “celebrity judge” on “Pitch Tank” alongside Steve Forbes and Whole Foods CEO John Mackey. She lives in New Orleans.
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Successful Journalist Owns the Ultimate Lifestyle Publication for Growing Entrepreneurs
The road to entrepreneurship is often mystifying and treacherous. It is filled with roadblocks, hindrances, and deadends that sometimes make people wonder how successful entrepreneurs were able to overcome all these challenges. Well, the journey wasn’t easy for Coffe’ Iman Summers, who once struggled to find a 9-to-5 job in the corporate world. But with her hard work, dedication, and determination to create her own path, she managed to become a successful journalist and the proud owner of a lifestyle magazine for entrepreneurs.
Today, Coffe’ narrates not only her own story of failures and success, but also provides a creative platform for others to share their own entrepreneurial journeys, stories, insights, and experiences. She has interviewed and covered stories on several industry leaders, such as Robin Kelly, Luxury Law, Lisa Price, Chrishon Lampley, and TJ Jackson.
Prior to starting her business, Coffe’ worked in the retail industry for several years. She started working in a department store when she was 16, then a shoe store, a call center, a gas station, etc.
Since she has hands-on experience in almost every retail sector, she understands the ins and outs of customer service very well. According to Coffe’, the college experience expanded her thought process and taught her that thinking outside the box yielded more opportunities.
By Priya Sharma degree, she tried to create a checklist that could help her become competitive enough to work in corporate America. However, when she graduated in 2003, the declining employment opportunities (the nation was still recovering from the devastating 9/11 event) shattered her hopes. After facing constant job rejections, she finally decided to launch something of her own. Coffe’ started documenting stories about what inspired others to start their own business ventures, which ironically began to inspire her too. Later on, she finally launched her own lifestyle magazine, Coffea, in 2009.
Coffea is a lifestyle magazine for growing entrepreneurs. The magazine shares the stories and experiences of entrepreneurs, who are either already established or are evolving in their industry. Coffea engages readers with helpful insights and tips to reach their goals, and also provides useful resources to help them overcome challenges in their own entrepreneurial journey.
Candid Convos is a live version of Coffea. Coffe’ Iman engages in conversations with entrepreneurs on various topics, such as how they are coping with being an entrepreneur, strategies they use to grow their brand, challenges they have conquered, and much more. These interviews can also be found on Coffea’s official website. Coffe’ Iman can also be heard on her weekly podcast, No Sugar No Cream. Along with the invited guests, she shares stories on life, love, lessons learned, and lots of laughs. Her podcast can be heard on 11 different outlets, including Apple Podcasts and Spotify.
Coffe’ says that at first, she found it challenging to promote her brand, as she comes from an era of flyers and commercials. Even though she now leverages social media to enhance brand awareness, she still believes in person-toperson contact or word-of-mouth promotion. Coffe’ says, “I try my hardest to listen to my loyal readers and give them excellent customer service as well as encourage their feedback.” She also works with publicists to generate buzz and awareness of her magazine. where people have to make career choices or change their path. She adds, “This is when you have managed to finish college and work a while in corporate America, but realize that you would rather start your own company and would enjoy hearing from others like you.”
Coffe’ believes that her life’s biggest achievement is having the courage to keep going. She says, “When I first started over 10 years ago, I probably would have wished for a more tangible business achievement. For example, a certification, a trophy, or a spot on a ‘Top 5’ list, but achieving in business is more than that. I've failed plenty of times, but the idea of starting my own magazine and not giving up is my biggest business achievement.”
Coffe’ says that the biggest advantage of working from home for her is being available to her children. She adds that being a single mother of two, she often finds it hard to trust others when it comes to her children. She also mentions other advantages, such as having effective breaks, saving money on food, creating a motivating work environment, and having the freedom to multitask.
Coffe’ has a very positive outlook on the future of her business. In the next three years, she visions herself with several teams nationwide that will report and research the lifestyles of entrepreneurs from different sectors and walks of life for Coffea magazine. She also expects to expand her business horizons and collaborate with similar media companies. Coffe’ says, “I desire to be a bigger force in media, where I am able to assist others who are where I am today.” Visit https://www.coffeamag.com.
Coffe’ Iman Summers is the Founder of Coffea, a popular lifestyle magazine for entrepreneurs.
Businessman Pioneers a Cleaner Future with Sustainable Cleaning Solutions
Never in history has cleaning been such a critical conversation at all levels. Cleaning is no longer a chore, but a vital necessity.
David Shahan has over 30 years of experience in all aspects of cleaning, from managing large apartment complexes, to innovating an Uber-like dry cleaning service that was on the drawing board to become a franchise model, to researching cleaning product development. Through it all, he began noticing a trend that was doing more harm than good. Shahan saw a cleaning industry that was largely utilizing chemicals and packaging that were harmful for humans, pets, and the environment. Backed by his degree in finance, Shahan wanted to develop a company that made a positive environment and financial impact every step of the way, disrupting the unsustainability of the traditional cleaning industry. By condensing his proprietary natural cleaning ingredients into coin-sized tablets that offer wildly effective cleaning solutions, Shahan was able to decrease the cost to the consumer and reduce the plastic waste that often ends up in our oceans.
Seemingly always on track for entrepreneurship, Shahan ran a couple of businesses while studying business at the University of Tennessee and after graduation began overseeing a successful dry cleaning business as a financial analyst for a real estate company. Shahan moved on to grow his own dry cleaning business into a several location operation and a delivery franchise model. When his wife became pregnant, the reality of the health risks caused by harsh chemicals used in dry cleaning factories set in, and Shahan was inspired to begin looking towards a cleaner future. Shahan spent the next 20 years working in management for a commercial janitorial company and expanding his expertise in the cleaning industry. During his time in commercial janitorial services, Shahan learned about the chemicals and technologies required to clean effectively, including cutting-edge innovations that were better for both human and environmental health. Shahan also realized during this time that consumers were paying too much for home
By Jacqui Somen
cleaning products. Given his background, Shahan understood that many cleaning products sold to consumers are composed of up to 95% water. Consumers were (and still are) footing the bill to ship bottles filled primarily with water to their doorsteps, while also being forced to buy and discard a plastic bottle each time they refilled their cleaning cabinet. Shahan’s revelation about consumer plastic waste was exacerbated by his life experiences, from seeing plastic waste floating in the ocean near his Florida home to watching it being sent to the landfill from recycling plants. These experiences drove home Shahan’s desire to use his expertise to create cleaning solutions that are simultaneously effective and safe for the environment. He knew that he must create innovative solutions that would protect his family, in fact all families, and the oceans.
Shahan founded his business, Sunstate Laboratories, in 2012 with the mission to protect all we love through pioneering products and technologies that create safe spaces and reduce waste. In this endeavor, he created his product, DAZZ Cleaning Tablets, to revolutionize the cleaning industry. DAZZ cleaning tablets use natural ingredients that are safe for humans, animals, and the environment, offering the planet a brighter and cleaner future. DAZZ’s effervescent tablets are formulated with a combination of Sodium Bicarbonate (baking soda) and Citric Acid (derived from citrus fruit) that makes a satisfying fizz and offers highly effective cleaning properties from both spectrums of the PH range. DAZZ cleaning tablets also include a detergent that is naturally derived from coconuts (and is necessary for effective cleaning) as well as a very small amount of food-grade, natural oil-derived fragrance to brighten the cleaning experience. Shahan spent several years using his expertise in cleaning to formulate DAZZ into an effective cleaner that protects homes, families, pets, and the environment, and using his business acumen to identify the ideal distribution channels for their pioneering product. DAZZ did a soft launch on Home Shopping Network (HSN). Though it was wildly successful, selling approximately 12,000 units in 11 minutes, Shahan realized this wasn’t a sustainable business model for DAZZ. Shahan spent the next year talking with buyers and working to get DAZZ on the shelves in brickand-mortar stores. Everyone he spoke to loved the concept, but didn’t think that consumers were ready — at that point, plastic waste had not yet achieved its large-scale global concern. David and his team relaunched DAZZ in 2019 and their persistence paid off. In 2020, DAZZ closed a round of funding with investors from 54 foreign countries where there is tremendous global concern for plastic waste, health consciousness, pricing, and exporting costs. DAZZ has the magical formula to create an effective cleaner that overcomes all of these pain points while also succeeding in the direct-to-consumer, brick-and-mortar, and global markets. By building DAZZ, David Shahan is truly creating a brighter, cleaner future for all. Visit https://www.dazzcleaner.com.
David Shahan is the Founder of Sunstate Laboratories.
SEO Tips for the New Year, Rebranding, and More
When operating a home-based business, one of your biggest hurdles is awareness; that is, getting your products or services in front of the right people. With over 4.2 billion people online and almost no barriers to entry, the internet is often the best place to start and grow your business. The question is, how do you compete with the almost 2 billion other websites out there?
If you don’t have the budget to flood the internet with ads or the expertise to know how to do this effectively, SEO is a safe bet. These days, whether you’re running ads or not, it’s extremely important to rank highly on search engines. And with Google owning over 70% of market share, a relevant and high first page ranking on Google alone could make your business a success.
Let’s start with a thorough explanation of what we mean when we refer to SEO.
As you may already know, SEO stands for “search engine optimization” and is a method of increasing your website's visibility in search engines like Google or Bing, based on factors like the speed, content, structure, and backlinks — essentially the ecosystem around, and the structure of, your website.
SEO is how you communicate to search engines what your website is about, so they recognize when and where to show it.
Below are a few tips on maximizing SEO for your home business’s website.
Competitor Research
There’s a fair chance someone out there is also providing the service you’re providing or offering the product you’re selling in one form or another, but this is a major benefit when it comes to SEO. In the world of SEO, you can dissect what your main competitors are doing to identify what works and what doesn’t. This is known as competitor research.
You can figure out what searches they’re ranking top-ten for, what type of content they’re producing, and what types of links they have from other websites back to their website (known as backlinks). If you don’t have a direct competitor, you can instead look at businesses whose goods or services overlap with
yours and still get an idea of what more you could be doing.
Pay close attention to whether they have Google search ads running, and what searches they are running ads on. These searches are known as “keywords” or “search terms,” and running ads on a particular keyword can be indicative of high value.
Keyword Research
This brings us to a major cornerstone of SEO: keyword research!
SEO often comes down to what keywords you’re targeting with your website and how, so keyword research can be a powerful tool in your arsenal.
Whether you’re starting your home business or attempting to grow it, it is always worth brainstorming initially what words and phrases are related to your business and/or your competitor's business.
You can then make use of any competitor research you’ve done to add the list of keywords they are currently targeting too.
Once you have a list, you can identify which of these words and phrases could mean that someone intends to make a purchase. An example of this could be someone searching for handmade cards. A phrase like “handmade card ideas” is significantly different than “handmade cards for sale.” The first indicates someone looking for a how-to guide, whereas the second would appear to be someone who wants to buy a handmade card. This is called purchase intent. Knowing the difference between keywords that indicate purchase intent and those that don’t can help you prioritize which words you focus on first.
By Tosin Yussuf
SEO is how you communicate to search engines what your website is about, so they recognize when and where to show it.
On-page Optimization
There are two main areas on each webpage to focus on: first, the content on the page and how you’re structuring it; and second, the efficiency (how quickly the page itself loads), which is affected by factors like the size of the images, but more on this later.
First, let’s think about the content on the page, as it is the easier of the two.
Ensuring the content on each page of your website is fully optimized will make a significant difference in your search engine rankings. The structure of the content combined with other factors like keyword placement could boost your traffic.
A well-organized site with easy navigation helps Google index your pages. The fewer number of clicks needed to reach a product or service page, the better. Depending on the nature of your business and the type of products you sell, you may require multiple categories, with several subcategories under each. Make this clear and logical.
Using the main keywords in the page title, headings, and subheadings makes it easy for search engines to understand what your content is all about. Longer keyword phrases can be ideal subheadings.
Product descriptions should always include the main keyword, and don’t forget to use alt tags in all product images that include the keywords and key information. Over 20% of searches in the US alone are done on Google Images, and both Google and Bing check alt text in their algorithms. This is particularly important if your home business sells a physical product.
Cross linking is another effective SEO technique. Cross link pages with similar content as well as related products or services. Visitors will stay on your site longer and you’ll be sending a clear signal to search engines that they are relevant.
Fresh content that's useful and engaging will also keep visitors on your site, so you should update content as often as possible. This can be done with a “Blog” section.
A bonus tip is to update any content you have on your website that specifies a date, e.g. “Best … 2020” to “Best...2021.”
Page Efficiency and Site Speed
The speed of your website is how long it takes for a chosen page on your site to load
In the world of SEO, you can dissect what your main competitors are doing to identify what works and what doesn’t.
By Tosin Yussuf
When you're rebranding, it's important to avoid losing ground.
1. You can check your website's SEO positioning with tools like Majestic.
com or Semrush.com. This will tell you how many links you currently have to your site and your actual website ranking.
2. When you’re rebranding, you’ll likely
have a new domain. The absolute best thing to do is to retain ownership of your former domain, as this will stop others from being able to purchase it and benefit from all the work you’ve done in the past. Holding on to your former domain also allows you to keep your customers in the loop and control what happens when they go to your former domain instead of the new one.
3. Remember to let your customers
know that you’re rebranding. I’d suggest having a “splash page” on your previous website to let people know that you’ve moved over to the new one.
4. For the new domain, the ideal thing to do, if you can, would be to move
over (or “migrate”) all the content from your previous site to the new one and use a 301 redirect on your former content to let search engines know that the same content is available on this new site — you can request this from your web developer. If you redirect in the correct way, you won’t lose any of your domain (or page) authority, as all the links that pointed to your previous domain will now be treated as pointing to your new one; provided you don’t make any major structural changes, everything else should remain the same.
5. You’ll also want to keep search
engines in the loop by sending clear signals of your association with your former website. Try doing this with your page title and homepage first, for example, by adding “formerly” and your previous brand name after your new brand name whenever possible.
To go further with this, you could crawl the content you moved over from your former website to find any mention of your former brand name, adding this same phrasing there as well.
6. Finally, if your business has been mentioned anywhere online with the
former branding, it’s worth reaching out to find out if they’d be willing to update this. Keep in mind that not everyone will be willing or able to do this, but this can be a significant win if they do.
up completely once clicked on. This includes images, text, and any other resources you may have on the page. Google uses site speed in its ranking algorithm, and a website that loads faster will outrank those that are slower.
You’ll need to use images in optimized formats and avoid using overly large images where possible. But don’t forget that depending on what content management system you’re using (for example, Wordpress or Squarespace), there may be plugins that slow down your website and additional pieces of code. This can all sound complex, but luckily Google has a tool to help you determine how well any page on your site is performing. The tool, PageSpeed Insights, grades your website speed on a scale of one (bad) to a hundred (excellent). Google PageSpeed Insights clearly shows you which parts of your website may be costing you points and what you need to do to improve.
It’s worth mentioning that you will more than likely get different results for your performance on mobile devices compared to desktop devices. You should generally focus on your mobile performance, since over 50% of traffic online is mobile and this continues to trend upwards. In addition, improving your mobile performance generally improves your desktop performance simultaneously.
Tosin is a marketing specialist and Founder of Lean Marketing (https://weareleanmarketing.com/), based in the UK. A former web and app developer, when she's not helping startups grow, she's tinkering with tech.
