Welcome to episode 113 with my guest Jessica Fialkovich
Jessica is an expert on exiting a business. She’s a best-selling author, speaker, and small business advocate. When she sold her first business a decade ago, she had no idea where to start. So, she went on the hunt for information. Fortunately, she was able to exit successfully, then bought her next business – a brokerage office.
For ten years Jessica has built the fastest growing and most successful business brokerage firm in the U.S.
So, what does this episode cover?
From experience, Jessica realised that most business owners who decide to sell are not prepared. There’s a lot of information out there on how to start a business and run one. But a lot less information is available on how to exit and sell one! So, Jessica founded her education firm, Exit Factor with her husband, with the intention of showing how the business sale process works. Giving buyers and sellers the tools to successfully (and profitability) complete a transaction.
We discuss how the process of ‘letting go’ of something or knowing how to let it go, is both a physical, practical, and emotional journey. Businesses can become an extension of yourself, a piece of your identity. So, preparing to let go and having the right mindset is essential in letting go well. Jessica believes that figuring out the next steps after exiting a business are fundamental in how well a business owner can move on. Focusing on what comes next is essential and she helps business owners to do this.
I asked Jessica if there is ever a good time to exit a business? Jessica is a firm believer that every company, no matter how big or small has a value. There is always a value appropriate to the size of the business. In terms of timing, we are all going to exit at some point. Jessica suggests exiting as early as possible works best. What makes a business valuable is when it is profitable and not dependent on you. Recognising that selling is a viable option over continuing to invest time and energy in the business is an important factor.
Jessica believes the top 3 mistakes when looking to sell are:
- Undervaluing a business due to its size
- Not keeping accurate and up to date financial records
- When a business is dependent on the owner for it to exist
As a financial asset, a company should be producing profit on its own and providing an income and lifestyle for you. When it is successfully doing this, then it is a good time to sell.
Aside from having the right mindset, managing change is fundamental to the selling process too, with the first step being to get comfortable with your decision to sell. You may be 100% happy with that, but it doesn’t mean you won’t still have doubts. Managing expectations and good communication is essential in being able to let go.
You can find out more about what Jessica does or if your business is sellable by visiting her website – www.exitfactor.com . This is a great episode and one I feel will be really valuable.