Jennifer had a dream.
A dream to one day grow her small floral company into a full-service event business and then continue to grow to a point where she could sell it for millions of dollars and, one day, be a stay at home mom. From the time she started her business, she worked tirelessly to make this dream a reality. She got up before the sun arose to go hand select the freshest flowers at the local market and going to bed late just so she could finish the last of her administrative work. As she established a reputation for developing stunning arrangements from local suppliers and had an abundance of clients, she decided it was time to expand her services and hired her best friend, Matt, as a chef to start developing a catering branch of the company.
Within a couple of years, the company exploded into the full-service event business she imagined and she was starting to consider different offers to buy it. There were a few key things the potential investors needed to know before the papers could be drawn and Jennifer could live out her true dream of being a stay at home mom for her two little ones, who were now 2 years and 2 months old, respectively.
How does your business perform financially?
As you're pitching to potential investors/buyers, be prepared to show proof that your company's current assets are enough to cover current or short-term liabilities and be prepared for them to evaluate every aspect of your financial reports to make sure that they're going to have a strong return on their investment.
Need help organizing your financial reports? Check out Curate COGS.
Do you have an effective business plan?
Your intended market, with data to show why that market is your target
- Data-based, hard number financial projections
- Sales channels, with data to show why those channels will be effective
- Marketing plans and goals, with data to show why those plans will be effective
- Analysis of the competition for your product or service
- Projected timeline for when you’ll start making money
- Potential obstacles and your plans for dealing with them
Are you indispensable to the business?
Lee Sontag of Downtown Blooms was recently in a position where it was time to sell the company. Looking back on his experience, he said that choosing to invest in Curate was "the best decision [he has] ever made for [his] business." This is because it allowed him to take the bulk of daily processes off of his plate and train his team members to handle the daily work of processing new inquiries, creating new proposals, managing inventory, preparing arrangements, and creating financial reports. Essentially, he made himself dispensable to the business and increased the value of the business because it was still a well oiled machine when he finally sold the company.
Concluding thoughts: what have you invested into the company?