The 4 Avatars

Happy Q2 friends,

Welcome to the Better Business Brief, where I share takeaways from:

running a business I’m building to sell for millions
my consulting with business owners building to sell for millions
tips and tricks you can use to do the same

I’ve decided recently that in order to effectively communicate to the people that I’m looking to help, I need to speak to them in a way that helps them be understood.

I help people who want to sell their business to effectively prepare, and I’ve learned that there are 4 key avatars of someone who would sell their business. I’ve learned this because most of the people I’ve spoken to about selling their business fit into at least one of these categories.

Each has a different background, set of motivations, and set of circumstances. When I speak directly to these avatars in my marketing, I am more effectively able to reach them and help them.

So today, in less than 5 minutes, I’ll give you:

👤 Which 4 people want to sell their business

💭 What motivates them to want to do it

☠️ Which pitfalls they should avoid

🏆 How each should handle their eventual sale

1. The Visionary Mover

This person is a serial entrepreneur. It may be their first successful business, but it won’t be their last. They’re very type A, driven, and their vision is larger than life. They move fast, break stuff, and fix it along the way.

Visionary Movers are driven by the thrill of what’s next. They see their current business as a stepping stone towards a larger goal or venture. Their primary motivation is not the business itself but the potential it represents for future opportunities and growth. They're always looking ahead, eager to tackle new challenges and scale greater heights. This person will sell their business as a way to fund the next steps and leverage their way to bigger things. This is my personal favorite type of individual to work with because I relate to them the most at this time in my life. That being said, they need guidance…

Here’s 3 pitfalls for you to focus on avoiding so you don’t mess this up:

Overestimating Value: Being overly optimistic about the future potential without concrete evidence can lead to unrealistic valuation expectations, scaring off potential buyers or leading to rash decisions.
Impatience: Rushing to sell can result in missed opportunities for better offers or selling at a less optimal time, affecting the sale’s profitability or jumping the gun on selling before the ideal time.
Neglecting Current Operations: Focusing too much on their future ventures can lead to neglecting the current state of the business, reducing its attractiveness to potential buyers or leading to its decline as they shift their focus.

There’s hope though. Here’s how I’d suggest the Visionary Mover conduct themselves in order to maximize their sale…

Understand Your Actual Value: Do research (On my Social media :) ) about how your business is actually valued so you don’t overestimate
Market Timing: Keep an eye on market trends to choose an optimal time to sell, potentially increasing the business’s selling price. In other words, know what you want to sell for and be patient for the opportunity that allows you to do so.
Stay Focused: Don’t be too quick to jump to the next venture and let your business fall apart and lose its value in the meantime.

2. The Passionate Artisan

This person started their business because they love the creative part. But now, all the extra work is getting in the way of their passion. The business grew fast because of their passion, but they don’t feel that now that they’re managing people all the time.

Passionate Artisans want desperately to return to the creative work, but they feel trapped. They aren’t great at managing people or building teams, so this thing has become too much for them to enjoy any more. They want out. Sometimes desperately. So they are considering selling the business as an escape. This is a dangerous place to be…

Here’s 3 pitfalls for you to focus on avoiding if this is you:

Emotional Decisions: Allowing emotional attachments to influence your decisions can lead to poor negotiation outcomes or regret after the sale.
Underestimating the Business’s Value: Not recognizing the full value of your creative work and brand could lead to selling the business short.
Poor Preparation: Failing to prepare the business for sale by not having clear financials or operational processes can deter potential buyers or cause a discounted sale that you regret.

There’s a better way out though. Here’s how I’d suggest the Passionate Artisan conduct themselves in order to maximize their sale…

Calm in the Storm: Stay stoic. Do your best to recognize when you are being emotional about your decision vs. being rational. Do your best to avoid letting your emotions guide this decision, and instead let rational thoughts prevail.
Streamline Operations: Before selling, streamline your business operations to make it more attractive to potential buyers.
Find the Right Buyer: Look for buyers who appreciate the creative aspect of your business and are likely to preserve its essence.

3. The Patient Builder

This person built their business step by step, thinking carefully about each move. Blood, sweat, tears, and strategy. They’re a planner. They didn’t build it by accident. So they’ve built something incredible. They put more time and money into it than anything else in their life. It’s their biggest and most valuable investment.

Patient Builders are motivated by the idea of cashing in on their long-term investment, seeing the sale as a culmination of their hard work and careful planning. They have arrived at a time in their life where they value spending their time in a different way, and the business may allow them to move on. There are, of course, pitfalls to avoid for this person too…

Here’s 3 of them for the Patient Builder to watch out for so they don’t mess this up:

Holding Out Too Long: Waiting for the "perfect" offer can sometimes mean missing out on solid opportunities that meet your valuation expectations.
Over-negotiation: Being too rigid in negotiations can scare off potential buyers, especially if the terms are already favorable.
Ignoring Market Conditions: Failing to consider the current market conditions could lead to selling at the wrong time, potentially reducing profits.

Of course there is an answer to these as well though. Here’s how I’d suggest the Patient Builder conduct themselves in order to maximize their sale…

Be Ready to Move: You started preparing your business for sale well in advance. Don’t doubt yourself now. If you wait forever in fear of not being “ready enough”, you may let the best opportunities slip by.
Highlight Stability: Make sure to present the business as a stable, reliable investment to attract serious buyers. That’s the way you built it after all.
Leverage Financials: Use your meticulously kept financial records to demonstrate the business's sound state and potential.

4. The Hard Times Navigator

This person is in a selling situation by accident or by circumstance. They may have inherited a business they don’t know how to run or have time to run. They may be going through a divorce and required to sell or try to sell. They may have a partnership dispute that is forcing them to sell. They may have a cancer diagnosis that makes them want to start taking the steps.

The Hard Times Navigator is motivated by simply getting through their hard time. If you’re this person, I can relate. I had to sell a business under these circumstances, and it’s the worst. You especially need some guidance…

Here’s 3 pitfalls for the Hard Times Navigator to be aware of so they can get through this tough situation:

Quick Sale Temptation: Rushing into a sale without proper valuation or understanding the market can result in selling below value. You’ll be tempted to sell to the first person to come along, and this may come back to bite you.
Neglecting Due Diligence: Not vetting potential buyers thoroughly can lead to complications pre- and post-sale, especially if preserving the business’s legacy is important. A buyer may come to the table with promises that they can’t keep or don’t intend to, and by the time these come to the surface, it may be too late.
Underestimating Emotional Impact: You don’t want sellers regret. Overlooking the emotional complexities of selling this business can lead to regret and dissatisfaction with the sale process.

Don’t give up yet though. Here’s some solutions if this is you…

Educate Yourself: Take the time to understand your business’s real value and how the selling process works. This will help you avoid getting taken advantage of by a buyer hoping to capitalize on your naivety (been there and it sucks).
Seek Professional Guidance: Utilize the expertise of advisors and brokers to navigate the sale effectively. Slow down a little. Have patience. Get guidance.
Emotional Support: Lean on support networks to manage the emotional aspects of selling a business you have attachments to. You should speak to a therapist if possible, or at least someone close to you about your emotional attachments to the business and about the hard times you’re experiencing.

What’s the big takeaway here? If you’re a business owner, you will eventually be at least one of these. If you learn about them now, you can avoid the pain of making mistakes or getting taken advantage of later. Be honest with yourself about which one you are and where your deficiencies lie. Take care of yourself during this major life event.

Be great. Keeping growing and aspiring. And as always: I hope you got something from this.

If you did, share it with a friend who may too, as this is the best way for me to grow it and make this better.

They can even sign up here :)

Happy value-building to all of you!

See you next time for Better Business Brief,

-Brody

If you are considering selling your business soon, let’s talk. Grab some time here and we’ll make sure your plan is on track.