By Sankeetha Selvarajah
Today's issue is brought to you by Zensei LLC. We help high achieving entrepreneurs get clear on their growth by planning their exits in a mindful, systematic process. If you're an entrepreneur who is looking to exit and scale in a way that fits your lifestyle, sign up for our Zensei Group Accelerator with our discovery call here.
Twinkies...and Buyer Psychology.
Dear Exiter,
People respond to 2 things:
1. Stories
2. Numbers
The story you tell someone is not the same that they hear.
Everyone is operating in their own perception of reality.
(Cue every romantic comedy).
The same can be said of numbers.
While numbers don't lie, INTERPRETATION of them is always subjective.
Again, more stories.
Attention is gained with storytelling but perhaps credibility is cemented with numbers AND stories.
Receive objectively.
Buyer psychology operates completely on the above principles.
The same value proposition applies to someone buying a Twinkie as someone buying a $5Billion company.
The cost value (time, energy, money) to the Buyer MUST be commensurate with the STORY of gained value (opportunities, gratification, future value).
Twinkies bring instant sugar (joy!), memories of childhood, quells hunger. (I will argue that NO ONE is thinking of future value when they’re tearing off that wrapper).
The main story rests on instant gratification.
Buying a company requires forethought, planning and careful analysis of return costs.
The main story rests on current & future value.
A successful sale requires the Seller’s DEFENSE OF VALUE (their story of numerical and intangible value) and the Buyer’s acceptance of the Seller’s story PLUS the Buyer’s GAINED VALUE (story of opportunity costs and gains).
Valuation methods are used as vehicles to support each other’s stories.
How you can create a “real, relatable” story:
- Detach your present personal and leadership value from your future BUSINESS value. Determine your Wealth Quotient Value
- Decide if you're open to flexibility beyond cash value.
- Decide on WHEN you're open to payment (months or years) - is there a particular milestone or date you MUST get funding by (child's 18th for college funding etc)
- Decide if your legacy is important to be continued. (Consulting)
- Decide if you have IP to be licensed after the sale date as a source of income.
Action Steps for this week:
- Create your “real, relatable” story of your company. How would 3 different, yet potential buyers receive it?
- Pitch your story to a business colleague. Have them “punch holes”. Defend your story.
Relate,
Sankeetha
Whenever you’re aligned, here is the best way way we can help you:
1. Our Zensei 4 week Group Accelerator is OPEN for the next cohort in DECEMBER. At half the cost of an individual Exit Plan, this allows you and I to co-create a 2 year Exit Plan for 2024 and beyond. Taking a cohort maximum of 6. Every Exiter has a private, 2 hour Exit meeting with me at end of Program and a complimentary 30 day followup. Sign up for a free discovery call here to learn more.
2. Zensei Exit Membership. Sign up for a free discovery call here to learn more.
3. Do you want to scale your company faster by planning your exit? Apply for private, full exit planning for 2-4 years here.
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