Delivering Marketing Joy is an award-winning interview show that helps marketers level up. Each week, Kirby Hasseman interviews the best and brightest minds in marketing to help you level up. This time on Lessons from DMJ, Kirby talks with Jonathan Baker about what entrepreneurs who want to sell their business need to know! Watch now!
Lessons from DMJ: Advice on Selling Your Business
This time on Lessons from DMJ, Jonathan Baker, the practice lead and M&A services for Punctuation, shares invaluable advice for entrepreneurs contemplating the sale of their business. The decision to sell a business is monumental and involves numerous factors that need careful consideration. This article will delve into the key aspects that entrepreneurs need to keep in mind, from determining the value of the business, the importance of the terms of the deal, the emotional toll of selling a business, to knowing when to sell or keep building.
Each of these aspects is critical and can significantly impact the outcome of the sale. They are not only about the financial implications but also about the emotional and lifestyle changes that come with it. So, let’s dive in and explore these aspects in detail to equip you with the knowledge you need to make an informed decision.
Determining the Value of Your Business
Understanding the value of your business is the first step in the selling process. Buyers determine the value of a business based on their goals and what they value in the business. This can vary significantly from one buyer to another, depending on their strategic objectives and the specific aspects they value in a business.
Several factors can influence the value of a business. These include the magnitude of profits, the positioning of the business in its market, client concentration, recurring revenue, location, and the extent of the business’s reliance on the founder. Each of these factors can either increase or decrease the perceived value of the business to potential buyers.
The Importance of Terms in the Deal
The terms of the deal can often be more important than the valuation itself. These terms can dictate the buyer’s continued employment, their ability to retain clients, and their post-sale lifestyle. The valuation is a point-in-time number, but the terms of the deal can have long-term implications on the buyer’s financial situation and lifestyle.
It’s crucial to negotiate terms that are favorable and align with your post-sale plans. This could involve clauses regarding your continued involvement in the business, guarantees about client retention, or stipulations about your lifestyle after the sale. Understanding and negotiating these terms can make a significant difference to the outcome of the sale.
The Emotional Toll of Selling a Business
Selling a business can be an emotional rollercoaster, akin to buying a house or dating. The process can be filled with excitement, despondency, and everything in between. It’s crucial to stay focused on running the business throughout the process, as getting too caught up in the sale can distract from the day-to-day operations.
Remember, the sale process can take time, and it’s essential to keep the business running smoothly during this period. This not only maintains the value of the business but also keeps you grounded and focused during the emotionally charged sale process.
Knowing When to Sell or Keep Building
The decision to sell or continue building your business is a significant one. It should be based on revisiting the reasons you started the business in the first place and considering the life-changing amount of money that a sale could bring. It’s essential to weigh these factors carefully and make a decision that aligns with your long-term goals and aspirations.
Remember, selling is not the only option. There may be other avenues to explore, such as partnerships, mergers, or even franchising. It’s crucial to consider all these options and choose the one that best suits your financial situation and future plans.
Conclusion
In conclusion, selling a business is a complex process that requires careful consideration of various factors. It’s not just about the financial implications but also about the emotional toll and lifestyle changes that come with it. Selling is not the only option, and sometimes it may be financially better to not sell the business.
To learn more about these aspects and get professional advice, consider reaching out to Jonathan Baker at Punctuation. With their expertise in M&A services, they can provide you with the guidance you need to navigate the sale process successfully.
Quinn Bui, a rising star in the industry and the national sales manager for Rupt, is the focus of this article. His journey from running his own multi-line business to joining Rupt, a company set to disrupt the industry with its unique features, is a tale of ambition, innovation, and community. Bui’s experience with van life and his insights into work-life balance also offer a unique perspective on the lifestyle of a sales rep in the industry.
Quinn’s story is not just about his professional journey, but also about the industry as a whole. He speaks of it as a big family, a community excited about Rupt’s products and supportive of their mission. This article will delve into Quinn’s transition to Rupt, the company’s unique features and the industry’s response, as well as Quinn’s personal experience with van life and work-life balance.
Transition to Rupt
Quinn Bui’s journey to Rupt began when he was running his own multi-line business in December. A phone call from Jason Lucash about a new opportunity at Rupt set the wheels in motion. Intrigued by the prospect, Quinn decided to join Rupt as their national sales manager, a decision that marked a significant transition in his career.
His move to Rupt was not just a career shift, but also a chance to be part of a company that was set to disrupt the industry. Quinn’s experience and expertise were instrumental in shaping Rupt’s vision and strategies, making his transition to the company a significant milestone in his professional journey.
About Rupt
Rupt is a company that aims to disrupt the industry with its unique features. They offer one-piece minimum orders, full-color capabilities, and a 48-hour turn time, setting them apart from their competitors. Their operations are spread across three different locations, ensuring efficient and timely delivery of their products.
But what truly sets Rupt apart is their commitment to sustainability. The company is carbon neutral and uses recycled materials for its products. This not only reduces their environmental footprint but also appeals to a growing consumer base that values sustainable and eco-friendly products.
Excitement in the Industry
The industry has responded positively to Rupt’s innovative approach. Quinn describes the industry as one big family, a community that is interested in what Rupt is doing and supportive of its mission. This sense of camaraderie and collaboration is a testament to the industry’s openness to innovation and change.
The excitement about Rupt’s products is palpable. Their unique features and commitment to sustainability have caught the attention of many in the industry, leading to collaborations and partnerships that further Rupt’s mission. This positive response is a testament to the industry’s readiness for disruption and change.
Van Life and Work-Life Balance
Quinn’s experience with van life offers a unique perspective on work-life balance. He had been living the van life while running his own business and continues to do so while working for Rupt. This lifestyle, he says, has improved his work-life balance, offering him the flexibility and freedom that a traditional office setting might not provide.
As a sales rep, Quinn’s van life has also allowed him to be closer to his clients and understand their needs better. His unique lifestyle has not only improved his work-life balance but also made him a more effective and empathetic sales rep, further enhancing his role at Rupt.
Conclusion
Quinn Bui’s journey with Rupt is a testament to the company’s innovative approach and the industry’s readiness for change. He invites people to learn more about Rupt on their website or by reaching out to him for a virtual presentation. His story is a reminder of the power of innovation, community, and a balanced lifestyle in shaping a successful career in the industry.
Each week on DMJ 1 on 1, Kirby Hasseman takes on a different topic to help provide value to those looking to grow a brand or organization. This time Kirby talks about mastering the 3 R’s of business…and how branded merch can help. Watch now!
How To Master The 3 R’s Of Business with Branded Merch
Mastering the three R’s of business – retention, repeat business, and referrals – is a crucial aspect of any successful enterprise. In this article, we delve into the importance of these three R’s and how branded merchandise can be leveraged to optimize these business aspects. We’ll explore how showing appreciation to your customers can significantly improve retention, how branded merchandise can boost repeat business, and how it can also incentivize referrals, thereby contributing to business growth.
Branded merchandise is not just a marketing tool; it’s a tangible representation of your brand that customers can appreciate and remember. It’s a way to make your business more top-of-mind for your customers, increasing the likelihood of repeat business and referrals. So, let’s dive into the details and learn how to master the three R’s of business with branded merch.
Retention
Customer retention is a vital aspect of any successful business. It’s often said that it’s cheaper to keep an existing customer than to acquire a new one. However, many businesses lose customers due to perceived indifference. This is where showing appreciation to your customers comes into play.
One effective way to show appreciation is through the use of branded merchandise. It’s a tangible way to express gratitude, making your customers feel valued and appreciated. Consider creating a quarterly appreciation program for your top customers, where you can distribute branded merchandise as tokens of your appreciation. This not only improves customer retention but also strengthens your brand’s relationship with its customers.
Repeat Business
Repeat business is the lifeblood of any successful enterprise. It’s a testament to your brand’s quality and reliability. Branded merchandise can play a significant role in increasing the frequency and size of customer orders. A study showed that customers who received branded merchandise ordered 18% faster and 18% more, highlighting the impact of branded merchandise on repeat business.
Offering customers something of value, like branded merchandise, helps them remember your brand when making a purchase. It’s also important to consider where your ideal customer is when they realize they need your brand’s service. By strategically placing your branded merchandise, you can ensure that your brand is top-of-mind when your customer needs your service.
Referrals
Referrals are a powerful tool for business growth. A happy customer is the best brand ambassador, and with the right incentives, they can refer others to your business. Branded merchandise can be an effective incentive for customers to refer others.
Consider creating a referral program where customers are rewarded with branded merchandise for successful referrals. The key here is to utilize quality branded merchandise that represents your brand well. This not only incentivizes referrals but also ensures that your brand is represented positively in the eyes of potential customers.
Conclusion
In conclusion, branded merchandise is more than just a marketing piece; it’s a tool that can significantly improve customer retention, boost repeat business, and incentivize referrals. By strategically utilizing branded merchandise, businesses can ensure that they are always top-of-mind for their customers, leading to increased business growth and success.
Delivering Marketing Joy is an award-winning interview show that helps marketers level up. Each week, Kirby Hasseman interviews the best and brightest minds in marketing to help you level up. This time on Lessons from DMJ, Kirby talks with Adam Callinan on profitability, Shark Tank, and why every entrepreneur is struggling right now. Watch now.
In this insightful interview, we delve into the entrepreneurial journey of Adam Callinan, the founder of Pentan, an e-commerce-focused SAS company. Callinan, who previously co-founded BottleKeeper, a company that achieved a staggering $8 million in sales without a single employee, shares his experiences, challenges, and lessons learned. He emphasizes the importance of leveraging technology, software, and automation in building a business, as opposed to the traditional approach of hiring people.
Through his unique journey, Callinan provides a fresh perspective on entrepreneurship, highlighting the struggles that every entrepreneur faces, and the importance of creating structure and maintaining physical and mental well-being. He also discusses why many early-stage companies struggle with profitability, and shares his experience of appearing on Shark Tank, which significantly boosted his company’s revenue. Lastly, he offers a special deal for listeners to access Pentan for the first 30 days for just $1.
Building a Company with No Employees
Callinan’s journey with BottleKeeper is a testament to the power of technology and automation in business. With a foundation rooted in a previous medical device business, BottleKeeper was built with strict guardrails to avoid hiring employees. Instead, Callinan focused on using technology and automation to build platforms and manage operations.
This unconventional approach allowed him to maintain control over the business, reduce overhead costs, and achieve impressive sales figures. The success of BottleKeeper serves as a compelling case study for entrepreneurs exploring alternative business models.
Challenges of Building Bottlekeeper
Despite its success, the journey of building BottleKeeper was not without its challenges. Callinan faced difficulties with inventory management and the cyclical nature of the business, which resulted in swings in revenue throughout the year. These challenges, while difficult, provided invaluable lessons that shaped the growth and evolution of the company.
Moreover, Callinan also discusses the mental challenges of dealing with the highs and lows of the business. The entrepreneurial journey, while rewarding, can often be a rollercoaster of emotions, and Callinan’s experience underscores the importance of resilience and adaptability.
Struggles Faced by Entrepreneurs
Callinan highlights the struggles that every entrepreneur faces, emphasizing the need for entrepreneurs to create structure and take care of themselves physically and mentally. The entrepreneurial journey can be fraught with challenges and uncertainties, making it crucial for entrepreneurs to prioritize their well-being and avoid isolation.
Creating structure, setting boundaries, and maintaining a healthy work-life balance are essential for long-term success. Callinan’s insights underscore the importance of self-care in entrepreneurship, a topic that is often overlooked in the pursuit of business success.
Reasons for Early Stage Companies Not Being Profitable
Callinan discusses why many early-stage companies struggle with profitability. He points out that the default approach of raising capital can lead to frivolous spending, and the tendency to add fixed expenses without understanding the necessary revenue levels can hinder profitability.
Understanding financial metrics and marketing efficiency is crucial for profitability. Callinan’s insights provide a valuable perspective for early-stage entrepreneurs, highlighting the importance of financial literacy and strategic planning in achieving profitability.
Impact of Appearing on Shark Tank
Callinan shares his experience of appearing on Shark Tank, a platform that provided incredible free advertising for BottleKeeper. The company experienced a significant boost in revenue after the episode aired, demonstrating the power of strategic exposure and publicity.
The ongoing impact of the Shark Tank appearance on the company’s success is a testament to the importance of seizing opportunities and leveraging platforms for business growth. Callinan’s experience provides valuable insights for entrepreneurs seeking to maximize their visibility and reach.
This offer provides a unique opportunity for entrepreneurs to leverage the power of Pentan’s platform to streamline their operations and enhance their profitability. With its focus on solving financial operation problems, Pentan is poised to be a valuable resource for entrepreneurs navigating the complexities of e-commerce.
Each week on DMJ 1 on 1, Kirby Hasseman takes on a different topic to help provide value to those looking to grow a brand or organization. This time Kirby tackles the question everyone has been asking. “What are all these charges on Branded Merch?” Have you ever been confused or frustrated by your invoice after purchasing branded merch? Then this episode is for you! Watch now…and feel free to read below.
DMJ 1 on 1: What Are All These Charges on Branded Merch?
The world of branded merchandise can be a labyrinth of extra charges and hidden fees. It’s a common experience for clients to receive an invoice that’s significantly higher than the initial quote, leading to confusion and frustration. Today we set out to demystify the pricing structure of branded merchandise and educate viewers on the various charges associated with it.
The video acknowledges the complexity of the pricing structure in the branded merchandise industry. It explains that these extra charges are often necessary for suppliers to compete on price in the industry. The goal of the video and this article is to provide insight into the pricing structure of branded merchandise and educate viewers about the extra charges associated with it.
Screen Charges
Screen charges are fees associated with creating physical screens for screen printing. These charges are necessary for each color used in the design. This means that a design with multiple colors will have multiple screen charges. Suppliers often save screens for up to two years, which can save on costs for repeat orders. However, screen charges can significantly impact the cost of branded merchandise, especially for small orders or designs with multiple colors.
While these charges may seem excessive, they are a necessary part of the screen printing process. The creation of screens involves labor and materials, and these costs need to be covered. Understanding this can help clients make informed decisions about their design and color choices.
Setup Fees
Setup fees are another common charge in the branded merchandise industry. These fees cover the time and labor required to set up machines and prepare for printing. Setup fees are common in digital printing and other printing methods that don’t require physical screens. Repeat setup fees may be charged for subsequent orders of the same design. These fees help suppliers cover the cost of labor and maintain competitive pricing.
Run Charges
Run charges are additional fees for running the job multiple times or in different locations. These charges may apply when printing multiple colors or printing in different areas of the product. Additional run charges can increase the overall cost of the order, especially for small quantities or complex designs.
Embroidery Charges
Embroidery charges are associated with creating digital files and setting up embroidery machines. A DST file is used to guide the sewing machine and ensure accurate embroidery. Embroidery charges are typically a one-time fee unless modifications to the design are requested. Keeping the art consistent can help avoid additional charges.
Art Charges
Art charges may apply when the provided artwork needs to be converted to a vector or camera-ready format. Vector art ensures that the design remains clear and doesn’t pixelate when resized. Art charges can be avoided by providing high-quality vector art. However, suppliers may need to clean up or modify artwork, resulting in additional charges.
Proof Charges
Proof charges are fees for reviewing and approving artwork before production. Proof charges act as an insurance policy to ensure the correct artwork is used. Some suppliers may charge proof fees, while others may not. As Kirby mentioned in the video, this charge can be a source of frustration for distributors and clients. But these charges have been created by using the supplier as the “art department” and requesting multiple proofs on every order. Implementing a system of one free proof could encourage better artwork preparation.
Less Than Minimum Charges
Less than minimum charges are fees for ordering quantities below the supplier’s minimum requirement. Suppliers may charge less than minimum fees to compensate for the inconvenience of producing smaller quantities. These charges cover the cost of handling and storing excess inventory.
PMS Color Match Charges
PMS color match charges are fees for matching specific colors using the Pantone Matching System. PMS color match ensures precise color reproduction for brands with specific color requirements. Matching colors accurately may require additional time and effort, resulting in extra charges. This fee will be charged for each color that needs to be specifically matched.
Shipping Charges
Shipping charges cover the cost of delivering the branded merchandise to the client. Shipping charges are necessary when products need to be shipped across the United States. Suppliers may include shipping charges in the overall pricing or list them separately. Considering shipping options and planning ahead can help mitigate shipping charges. But make no mistake, no distributor has the space to house the (over) 1 million promotional products for sale. So there will be a cost of shipping to deliver your order.
Conclusion
The world of branded merchandise can be a labyrinth of extra charges and hidden fees. However, understanding these charges can help clients make informed decisions and avoid surprises on the invoice. The goal of this article is to educate viewers about the extra charges associated with branded merchandise and provide insight into the pricing structure of the industry.
Remember, it’s always a good idea to ask for all charges upfront. This can help avoid surprises on the invoice and ensure that you’re getting the best value for your money. So the next time you’re ordering branded merchandise, don’t be afraid to ask questions and get the information you need.
