Title - Present your business as standardised to get the best terms Tags - businesssystems exitstrategy businessplan
Service businesses are usually acquired with a 3-5 year earn-out, which means the business only gets a small amount of money upfront, and the rest comes later IF the company meets its goals.
When product businesses are sold, the owners typically get the full amount upfront, and there is no earn-out. Obviously, this is more desirable for the owner/seller of the business.
Therefore, it’s critical develop a standardised service (202206040913) and run the rest of the business as franchise prototype (202206031028).
Assuming you are actually selling a standardised business, you then need to present it as such so that you are rewarded for it (with higher price, etc.: 202206040913).
One way to present a business as standaridised is to describe is with words like “customers” rather than “clients”, and “business” rather than “firm”.
[#warrillow2011builttosell]: John Warrillow (2011): Built to Sell: Creating a Business That Can Thrive Without You, Portfolio.