How do I sell my business in the next 6 months?

As the UK economic recovery appears to have taken hold in 2015 & 2016,   as well as the problem of overtrading and running out of cash, owner manager are looking at their exit options.  The vast majority of owner managers have never exited a business before, and many generalist business brokers exploit this with promises of high multiples or valuations and many potential interested parties.

I also wrote an article earlier this year stating why now is a great time to sell your business, read this now

However, the reality for most UK businesses (or read ‘owner managed SMEs’) is that at the time they want to sell, there may not be many buyers or acquires around at the right stage. As most owner managers are actively involved in ‘their business’ , without a great deal of forward planning, they will have to remain involved in the business long beyond the sold date.  Even when he or she gives up day to day control, they will almost certainly be subject to an earn-out or deferred consideration.

Also, they will also face being an employee with a boss rather than an owner manager themselves.  This means that for many exit strategies, management succession is the top of the priority list, i.e. you must invest early in a strong management team. This is no bad thing, because having strong management will drive growth, and maybe even make them possible buyers as well.

CMC Partner have produced a 10 step checklist for improving your chances of a successful exit, it is available to download here.

Also to get the best price, an owner manager needs to ensure a maximum valuation for the on-going business.  The business valuation is dependent on many things, not least the likelihood of future cash flows.  Recurring income is the star item, as long as there is growth potential within it.   Whilst having recurring contractual income is great, it is the details that matter.  A 5 year history of a client consistently repeat purchasing is arguably more attractive to a buyer than a 5 year contract that includes onerous clauses is a red flag to an acquirer, i.e.  a clause allowing a customer to terminate because of a change of control.

For every sale, we need to think about an acquirer, and getting your business into their target sights.  Most acquirers prefer to be able to target specific businesses whether directly or through a search, preferring not to enter into a competitive process or auction. They want to minimise change in the target business while they take it over.  One point we always try and get a seller to thing about is how to get the messages to possible acquirers before they make an offer.   As part of an exit strategy, have you considered what will make you attractive to a trade or strategic acquirer?  When you have identified what an acquirer might find attractive in your business, you need to get your name out with some PR, e.g. exposure in national trade press, in online articles covering these areas with specific keywords or phrases.  Get your advisers researching possible acquirers and ensuring your business is on their radar.

To answer the question posted in the title of this article, the answer is ‘no & yes’.  If you have planned your exit strategy and done your research, and readied your business for sale, then you can sell your business in the next 6 months.  However if you have just wakened up to the hope that you want to sell your business (maybe you have had 1 too many disputes with your staff or customers), then yes you could sell your business at a heavily discounted valuation.  But why would you do that, get a better price by starting the ground work today.

Making the decisions required to plan for the sale or exit from your business is never a simple set of choices and you will need some guidance.   If you as an owner manger want to sell your business in the next 12 to 18 months or if you would like to explore how CMC can support you through your business journey, contact us via this form.

Business Surgery

FREE Business Surgery with Bob Brown in Worcestershire

Are you a Worcestershire business owner looking to fulfil the potential of your business?

Bob Brown, is offering up to 3 FREE private 90 minute business surgery mentoring sessions, giving  the opportunity to discuss the topics that are important to you.

Here are a few areas where Bob has helped other local businesses:

  • Starting up a business for long term success
  • Taking control with solving business problems
  • Growing a profitable business with practical steps
  • Succession planning to the next generation
  • Exit Strategy planning to help realise full business value

Bobs is running these sessions every second Friday of every month at Malvern Hills Science Park. They are free of charge and without obligation.

‘Working with Bob has allowed us to grow by 35% year on year for the last 3 years. This wouldn’t have happened if we didn’t engage with Bob Brown at CMC Partners’

Derrick Barker, Managing Director

White Paper – Raising Finance for Your Business

Are you thinking about raising money for your business?

Too many business owner’s we talk to have been disappointed in their efforts to raise money for their business. We have therefore put together this guide to help provide an overview of this potentially complex and challenging process of raising finance.

This guide should help you understand about the process of raising money for your business before you start talking to lenders.

It is easy to read and assumes no prior knowledge of the finance market and debunks some of the mystery associated with the topic.

This raising finance guide includes:

  • Aspects of personal preparation
  • Essential business preparation
  • Know what you want the money for
  • Making your business ‘investment ready’
  • Legitimate reasons for borrowing money
  • The risk of your proposed investment
  • Sources of finance depending on your business stage/need
  • Main types of funding
  • Checklist

Download your copy of ‘Thinking about raising money for your business?’

Simply complete the form below and a copy will be emailed directly to you.

Paying the Price for Discounting

When times are tough many UK firms react very quickly and discount prices across the board without fully understanding the impact on demand or profitability.  The results should be dramatic and immediate.  But so is paying the price for discounting.  Many industries and companies using discounting fundamentally erode the total value of the market.  Buyers’ and consumers’ price expectations are lower and buying behaviour changes, perhaps forever.  Just look at what is happening to the big retailers over the past 2 to 3 years.

When survival is the key driver, dropping price is an understandable response by the sales force, especially as sales volumes fall. This might be the right thing to do if the product or service you’re selling is price elastic and so long as a reduction in price will increase sales volumes.  So is that good news?

Discounts are usually driven not by an understanding of market dynamics but by sales force incentives.  Sales teams are frequently measured by sales volume, rather than the quality of the revenue they bring in, i.e. profitability.  If a salesman is rewarded for selling more, then the easiest way to achieve that objective is to discount prices.  This may not be the best in the medium term for the business.

All companies, and in particular SME organisations need to look at their pricing processes and controls to ensure their pricing strategy is effectively implemented, reviewed and managed.  Performance metrics should be linked to profit as well as volumes and appropriate controls should be embedded such as target and limit prices.  For example, a stepped approach to discounts based upon actual spend (not planned spend) incentivises every-one.

So if you have to offer discounts, be aware of when, how much and to whom – and equally important for how long. Have you had a conversation with a current customers about levels of discounting and tried to justify what is being offered to them or other companies and why?  It is a very difficult subject to discuss and explain rationally, so be prepared.

If you wish to discuss how to structure pricing and incentive plans that help sustainable growth, or if you would like to explore how CMC can support you through your business journey, contact us via the form below.

Do small firms need a brand?

If you are a small firm or a sole trader, you could be forgiven for thinking that branding is not for you. “Big names spend money on branding, small companies just get on with the job” is a typical response when I discuss branding with clients, in this post I aim to answer the question why do small firms need a brand?

Even if you they do believe in branding, it may come low on their to-do list after vital day-to-day tasks that keep their customers happy and keep revenue coming in. I get this, so how can I convince them that branding matters – whether they are a window cleaner, a solicitor or you run a local IT support firm?

Brand V Reputation

The first thing I do is to tackle the wording. If you were to replace the word “branding” with “reputation” I might get your attention. You care about your reputation, right?

In this context branding is all about the impression you make. If you want to succeed, that impression should do two jobs – it should convey what is special about your business and it should show you in a positive light.

Of course, many small businesses make a good impression most of the time without ever giving a thought to their brand. But think how much more successful they would be if they gave a good impression all the time.

What I am advocating is that you think about the impression you want to make – your brand – and actively take steps to manage it.

Firstly, you must decide what you stand for – what is your CVP (Customer Value Proposition), who you are aiming at and how you want to position yourself. Then you need to make sure that all aspects of your business are in line with this. Look at my recent post on how to create your CVP.

Creating a brand identity

Your brand identity should be authentic for your business, but it need not be any less professional or engaging. Customers respond to original, independent brands – small businesses with their own personality and an engaging story to tell.

You don’t need to spend much, but paying a graphic designer or affordable branding specialist to create your brand identity can be a shrewd investment. Be armed with examples of branding that you like, but remain open to their ideas.

Test your branding before launch; ask potential customers for feedback and make changes where necessary. Your branding should impress. Your brand identity should ring true with your business and its values. Consider how it will look in every environment in which it will be used. Simplicity is advised. Less is more, so limit your colour and typeface choices.

Apply your brand consistently

Your brand should be applied consistently – from customer call handling, social media posts and staff appearance to signage, stationery and website, etc. Your customer experience should mirror your brand promises. For example, there’s no point having reliability as a part of your CVP if you don’t answer customer enquires promptly.

Customers must be able to quickly distinguish your business and understand what it stands for. If you have employees, make sure they realise the importance of branding (provide training where necessary). Consistency underpins all successful brands.

If you want to discuss how to develop your band, simple click below for a no commitment chat

Value Proposition take 2: How to create the ideal value proposition

Following on from my earlier blog on the subject of value propositions, here I take a look at what makes a good value proposition, remember, your value proposition is the number one thing that determines whether people will bother reading more about your products or engaging with your business.

How to craft your ideal value proposition

A key role for the value proposition is to set you apart from the competition. Most people check out 4-5 different options / service providers before they decide. You want your offering to stand out in this important research phase.

So how do you make your offer unique? Often it’s hard to spot anything unique about your offering. It requires deep self-reflection and discussion.

If you can’t find anything, you better create something. Of course the unique part needs to be something customers actually care about. No point being unique for the sake of being unique (“the ball bearings inside our bicycles are blue”).

The key thing to remember is that you don’t need to be unique in the whole world, just in the customer’s mind.  The closing of a sale takes place in a customer’s mind, not out in the marketplace among the competition.

Boosters for your value proposition

Sometimes it’s the little things that tip the decision in your favour. If all major things are pretty much the same between your and your competitors’ offer, you can win by offering small value-adds. I call them boosters.

These things work well against competitors who do not offer them.

Boosters can be things like:

  • Fast / free packaging and delivery
  • Free setup / installation
  • No setup fee
  • No long-term contract, cancel any time
  • License for multiple computers (vs 1)
  • Money-back guarantee
  • A discounted price, for first order
  • Customisable

You get the idea. Think what small things you could add that wouldn’t cost you much, but could be attractive to some buyers.

Make sure the booster is visible with the rest of the value proposition.

Good value proposition examples

It’s tough to find perfect value proposition examples. Probably because it’s hard to create a great one. I find flaws or room for improvement with most value propositions I came across.

I’m also fully aware that I’m not the ideal customer for many of the examples shown below, and all my critique is, is an educated hypothesis (that should be tested).

Here are some good examples along with my comments:


Stripe Value Prop copy


  • It’s clear what it is and for whom
  • Specific benefit oriented sub-headline
  • Relevant visuals
  • Smooth transition into features and benefits


value prop 2 copy


  • Very clear headline
  • Benefit and action oriented sub-headline
  • Key benefits clearly listed
  • Relevant image

What makes a good value proposition:

Clarity! It’s easy to understand.

It communicates the concrete results a customer will get from purchasing and using your products and/or services.

It says how it’s different or better than the competitor’s offer.

It avoids hype (like ‘never seen before amazing miracle product’), superlatives (‘best’) and business jargon (‘value-added interactions’).

It can be read and understood in about 5 seconds.

For help in designing your value proposition, or a review of your current value proposition simply fill in the contact form below:

What is your value proposition?

Your value proposition is the number one thing that determines whether people will bother reading more about your products or engaging with your business. The less well known your company is, the better value proposition you need. When reviewing marketing plans with my clients, the main conclusion was that missing or poor value propositions is one of the most common shortcomings.

What exactly is a value proposition?

A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you.

In a nutshell, value proposition is a clear statement that:

  • explains how your product solves customers’ problems or improves their situation (relevancy),
  • delivers specific benefits (quantified value),
  • tells the ideal customer why they should buy from you and not from the competition (unique differentiation).

You have to present your value proposition as the first thing the visitors see on your home page, and should be visible in all major touch points with your customers.

It’s for people to read and understand

Your value proposition is something real humans are supposed to understand. It’s for people to read. Your value proposition needs to be in the language of the customer. It should join the conversation that is already going on in the customer’s mind. In order to do that you need to know the language your customers use to describe your offering and how they benefit from it.

You cannot guess what that language is. The way YOU speak about your services is often very different from how your customers describe it.

The ideal value proposition should be:

The value proposition is usually a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, product shot, graphics).

There is no one right way to go about it, but I suggest you start with the following formula:

  • Headline. What is the end-benefit you’re offering, in 1 short sentence, you can mention the product and/or the customer, and it needs to grab attention.
  • Sub-headline or a 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom and why is it useful.
  • 3 bullet points. List the key benefits, from the customers perspective.
  • Visual. Images communicate much faster than words. Show the product, the hero shot or an image reinforcing your main message.

Evaluate your current value proposition by checking whether it answers the questions below:

  • What product or service is your company selling?
  • What is the end-benefit of using it?
  • Who is your target customer for this product or service?
  • What makes your offering unique and different?

Use the headline-paragraph-bullets-visual formula to structure your answers.

How to create a winning value proposition?

The best value proposition is clear: what is it, for whom and how is it useful? If those questions are answered, you’re on the right path. Always strive for clarity first.

If your value proposition makes people go “hmph?” you’re doing it wrong. If they have to read a lot of text to understand your offering, you’re doing it wrong. Yes, sufficient amount of information is crucial for conversions, but you need to draw them in with a clear, compelling value proposition first.

I have written more about how to craft and boost your value proposition in this blog

If you would like a review of your current value proposition, or need advice on how to develop your first fill in the form below for a initial review.

Marketing strategy can prime your business for growth

Having a solid marketing strategy is critical for success. All too often great ideas fail because they’ve been marketed to the wrong people at the wrong time, or too much investment has been piled into an area with a low rate of return.

With that in mind, here are five sure-fire ways to avoid the pit falls and turn your business investments into a success story.

1. Know your vision and mission:

First of all, you need to ensure that you know exactly what your product is, what your aims are, and how you plan to get there. Can you explain what you do in a single sentence? It sounds obvious enough, but it’s imperative to nail down exactly what you’re offering. After all, if you can’t explain your business clearly, how do you expect customers to understand what you can offer them?

2. Know your customers:

Before you reach out to audiences, you’ll need to identify who your targets are. It’s a waste of both time and resources to blanket-market to large numbers of people if only a small fraction of them are real suspects; that is, those people in your defined target market. Instead, identify who your core customers are likely to be, by drawing up a customer profile. What’s their demographic? What are their challenges? What are their goals and pain points?

3. Know your competition:

It’s likely that you are providing a solution to a common problem; so the chances are, someone else is doing something similar. It’s worth finding out who your direct competitors are; what services they’re offering; what fees they’re charging; and what special offers and marketing they provide. This will help you to hone your own service, perhaps even single out your own unique selling points, and help you establish where you can improve on the competition.

4. Use data intelligently:

These days the sheer volume of data for marketing usage is incredible. It’s also diverse, complex and changes in an instant. We therefore need to continuously adapt our approach to deal with data effectively—to make it a truly worthwhile investment.

5. Be patient:

Conventional marketing wisdom says it can take between five and nine contacts or brand impressions before a prospect takes action, so plan and execute well thought-out campaigns over time. You may not achieve fantastic results immediately, but clever marketing and nurturing of prospects will reap rewards if you are patient.

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Marketing Strategy aids growth