Welcome to our exciting journey on understanding why most business exits fail and how you can turn the tide in your favor! The host of The Deep Wealth Podcast and post-exit entrepreneur reveals the strategies he used from saying no to a 7-figure offer and the system he created to welcome a 9-figure exit deal. Let's dive in and discover the secrets to a successful business exit!
Welcome to the Deep Wealth Nation! I'm thrilled you're here today. My name is Jeffrey Feldberg and I'm diving into a big topic for business owners everywhere – why up to 90% of business exits fail and how you can make sure yours doesn’t.
When I started my eLearning company from my parents' attic, I had nothing but grit and passion. I faced failure time and again, but these setbacks taught me valuable lessons. What I didn’t know back then is that the skills needed to grow a business aren't the same as those for selling it. I learned how to create a system for a successful business exit, not through theory but through experience.
Business owners often believe that the skills to build a business are enough to sell it. However, that's simply not true! As Jeffrey says, “The skills that create a business are not the same as those to grow it, and they're definitely not the same to sell it.” Imagine playing a brand new game without practice. That's what it's like selling your business without preparation!
Preparation is Key To Build An Asset And Not A Job
Jeffrey's journey began from humble beginnings in his parents' attic. He learned that hope isn't a strategy; preparation is! “My 9-figure liquidity event wasn’t an accident. It was a result of relentless preparation,” says Jeffrey. He teaches us that preparing early and building solid systems in your business can help you get the best deal.
One thing you need to know is that hope isn't a strategy. Preparation is everything. Up to 90% of business exits fail because they aren't prepared. Without preparation, you risk leaving lots of money on the table. In fact, many entrepreneurs leave 50% or more of the deal's value for the buyer, simply due to lack of preparation.
When I was offered a 7-figure deal, my family and friends thought I was crazy to say no. But I was saying yes to something bigger - a 9-figure exit. This happened because of the preparation and strategies I used. With hard work and by learning from mistakes, I created a system that could help you too.
To attract buyers, your business must run smoothly without you. Jeffrey points out, “Buyers want a machine, a business that runs seamlessly with or without the owner.” Imagine having a car that everyone wants because it drives perfectly without needing you to push it!
In the early days, my business was chaotic. It relied solely on me. I was a bottleneck and the biggest liability. Buyers don't want chaos; they want a smooth-running machine. I moved from treating my business as a job to viewing it as a valuable asset. Systems and processes became my best friends. They made my business scalable and attractive to buyers.
Know Your Worth
Knowing how much your business is worth is crucial. Jeffrey warns, “If you don’t know what your business is worth, the buyer will, and you won’t like their numbers.” Make sure you know your business’s true value and highlight what makes it special to potential buyers.
If you don't know your business's worth, the buyer will dictate it, and you'll likely not be happy with what they offer. A professional evaluation can uncover your strengths and weaknesses, but it’s your job to highlight your unique intangibles. Things like customer loyalty and intellectual property add enormous value.
Our Deep Wealth Mastery Program focuses on teaching you this – discovering your business's unique X-Factors that increase its value. Every company has them, and they can be your game-changer.
The Power of Timing and Relationships
Success isn't just about numbers; it also involves building strong relationships. “Trust and transparency pave the way for better negotiations and stronger deals,” says Jeffrey. It's like making friends who are willing to go the extra mile for you!
Selling at the right time is crucial. Even a great business can fail if sold at the wrong time. It’s about preparing your business to align with market conditions. While you can’t control the market, you can control when your business is ready to shine.
Relationships with buyers and advisors are key. Trust builds deals. In M&A (mergers and acquisitions), trust is everything, not just numbers on a spreadsheet.
Jeffrey says, “Relationships build deals, not spreadsheets.” Trust paves the path to successful negotiations. During his exit, Jeffrey viewed buyers as future partners. He believed in creating a win-win-win situation for all involved.
Selling your business can be an emotional ride. Jeffrey shares, “You're not just selling a company. You're parting with a piece of yourself.” But remember, it's normal and leaning on your support network can help you through it.
Think Ahead: Your Post-Exit Life
Once your business is sold, what next? Jeffrey advises planning your post-exit life. “Your liquidity event is not the finish line. It's your launch pad,” he says. Have a plan for what you’ll do after the sale, so you're not left feeling lost.
After selling my business for a 9-figure sum, I discovered that financial freedom wasn’t the only goal. It’s about leaving a legacy, building systems and relationships that outlive you and help others. After my exit, I focused on my family and health, giving back and mentoring other entrepreneurs.
As I always say, "Success without fulfillment is failure." Money won't buy happiness. What fulfills you should be a central part of your business strategy.
Your business isn't just a way to make money; it's your legacy. “Your legacy lives in the lives you’ve touched,” Jeffrey notes. Focus on the impact you want to leave behind for your team and community.
Take Action Today
Jeffrey challenges you to take action now. Whether it's understanding your business's strengths and weaknesses or starting to document your processes, “Dreamers dream, but winners do.” So why wait? Small steps today lead to big successes tomorrow!
It's never too early to prepare for a business exit. Whether you're planning to sell in 2 years or 22 years, start now. Success doesn’t wait for the perfect moment. Your actions today shape your future.
If you're serious about turning your business into a legacy and ensuring a successful exit, remember one thing: Preparation is key. It’s the gift that keeps on giving and will help secure the best deal possible.
So, what is your vision for the future? Define success not just by money, but by the impact you want to make. Every decision, from team-building to deal-making, should be purposeful. Your wealth is about more than the money in the bank; it's about your journey and the legacy you leave.
Become a Part of the Deep Wealth Nation
If you're serious about mastering your business exit strategy, consider joining the Deep Wealth Mastery Program. As Jeffrey says, “Deep Wealth Mastery is for you if you want to grow your profits and prepare for a future liquidity event.”
Creating a business takes one kind of skill. Growing a business takes another. And selling it—well, that’s a different game altogether. Imagine playing a game you’ve never played before. Would you risk being the guinea pig? Especially when your entire life’s work, your legacy, and your financial freedom are on the line?
Let Jeffrey’s lessons inspire you. Start preparing for your business exit now and secure not just any deal, but the best deal! Remember, the preparation you do today will shape your success tomorrow. Let’s get started on unlocking your deep wealth!
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