Selling a business successfully
What to do when selling a business
A client testimonial from Susan King, owner of Earthspa, Belgravia, London.
Susan ran this salon business which had a turnover of £500,000 and employed six therapists.
There was a drop in profits and this video explains how we worked together to turn things around and ensured a successful sale of the business.
What to do when selling a business? The Desai Despatch – Episode 25
(JK) Susan King is a salon owner and she is one of Falguni’s clients. The first question I would like to ask is really going back to when you first came across Falguni, what were the particular issues that you had at the time that you needed help with?
(SK) The salon that I had Falguni was a client for a number of years, and she always took an interest in my business.
I unexpectedly hit a downturn, which really put a dent in the profit, but because I had been sort of stuck in a way of doing the business and it had been working, but when that didn’t work, I panicked.
Falguni was around and she asked me a few questions and offered to help.
I think what attracted me to Falguni was getting another set of eyes to actually look a the business.
(JK) Falguni what do you decide to do to help Susan?
(FD) As Susan said, I was a client at the salon in Belgravia in London for a while and I had changed careers and was now doing business coaching, so I said to Susan whilst having a chat over one of some of her issues that I could really help her look at certain areas and turn things around.
The three key areas that the challenges were in obviously was
- generating more revenue,
- getting her team engaged
- and also organising her time properly because she was just really, really busy and it was getting exhausting for her.
(JK) What happened next, Susan?
(SK) Well, what we did was really identify three key areas that I could concentrate on that I could implement immediately.
So by looking at the business as a whole and Falguni asking specific questions, it really helped me to focus in on looking at cost-saving exercises, engaging the team, knowing the numbers. Just looking at those three things made a big difference, but also dealing with the challenges of how to improve the business.
Having someone to talk to and getting their input took the pressure off.
Otherwise, when you are going through a challenging time, you do tend to feel overwhelmed and you think you should be doing marketing or you should be doing this or you should be doing that, but it doesn’t really work.
So managing my time to focus on those key areas was like a godsend.
(JK) That’s wonderful so as time moved on I understand that you ended up selling the business.
Now, could you tell us a little bit more about that from the point of view of the help that you got from Falguni, Susan?
(SK) Well, first of all, because of the way that the business had been going and I had been running it for 14 years.
I was a bit bored with it, but more to the point, I think when the challenges came along, it kind of makes you wonder
Is it worth it?
I had actually put the business on the market already, but when Falguni stepped in, honestly, it gave me a new lease of life because you have never really sold it until that deal is done.
So, while we were engaged over a period of six to nine months, a buyer hadn’t stepped in at that stage, we were actually working with Falguni to in order to carry on the business.
It got my momentum back. And actually the things that we discussed and what was implemented actually did improve the business over that relatively short space of time.
I think what most pleased me was the fact that I ended the business. And sold it on a high, rather than I was in a case of desperation and scraping myself up off the floor and I am very grateful for that.
(JK) Obviously, as far as the relationship sort of develops and clearly now we have a situation where Susan sort of going again, as it were. What’s your take on what needs to happen now?
(FD) So Susan is back looking at businesses to buy in her industry, because that is the industry she knows really, really well.
I think this time around, it is looking at it from an unemotional point of view and just making sure that the numbers work. If you can believe the numbers, you can make an objective decision.
It is all about making sure that if the numbers are right, you invest in something and then make sure that it is running and then you can start to buy another business because then you know that there is a structure there.
There is a formula there which works so that you can then replicate it and I think Susan is thinking along those lines now.
(SK) I am very excited, actually. The reason being is when we set up the first business, I was a therapist who wanted to have my own business.
Actually, having that idea and running a business, is a very different reality.
You end up learning everything the hard way, which is not necessarily the best way.
It is also time-consuming.
So to be able with the experience that I have had on my own and then also with the Falguni’s input on how you look at the numbers and really crunch them down and know what is profitable, what is working, what is not working.
I can now look at things in a much more objective way. And almost make a good decision from the outstart about what business I want to buy. And the potential for that business so that you can stack the odds in your favour that the business will be a success.
(JK) Well, it looks like it has been a profitable and highly worthwhile relationship. Thank you so much for both of your time. Thank you, Falguni, thank you, Susan.
Does this resonate with you? If you would like to book a complimentary, no-obligation, coaching session to discuss this further, please email me at falgunidesai@actioncoach.com
