On Monday, 21 August, we spoke to Bruce Whitfield on The Money Show on Radio 702 and Cape Talk of that day’s R450 million sale of the Gupta media assets, ANN7 and The New Age, to Mzwanele “Jimmy” Manyi’s consortium, Lodidox.
The feature focused on the business valuation of media assets and made business owners aware of the importance of a correct business valuation in assessing their enterprise as an Asset of Value when they put it on sale.
The feature also highlighted the methods of business valuation, the risks involved for the buyer and why they should be aware of these factors.
How creating simplicity enables scaling. Simplicity is only possible with strategy and a clear understanding of who you serve. It's found in product design, supplier selection, business systems across the organisation and especially in customer segmentation and engagement. It's rare in any business and especially so in a 3rd generation business. It's also key to next generation succession.
Despite what you may think or feel, doing it on your own won’t set you on a pathway to success. You can’t build a business without people and - as we discussed onThe Money Show with Bruce Whitfield – if you want to sell your business, you’ll need to learn to delegate:
You’re winding down towards the end of 2018, and preparing to lock and load the early sales for 2019. If you’re not in this space, your first sales will only flow into your business towards the middle of next year. That could be a death knell for your business. Get selling, don’t stop, and keep your business momentum moving. But, even as you prepare for success, you need to prepare for disappointment in 2019. Many of those early sales you’re gearing up for...won’t happen. OnThe Money Show with Bruce Whitfield, Pavlo Phitidis discusses how you can prepare for disappointment, and mitigate the effects of your early 2019 failed sales:
Every business owner should be concerned about whether they will be able to sell their business for a good return when they’re ready to put it up for sale. When the day comes for them to sell, there will be one big question on their minds – will they get the price they want for the business? So how can you ensure that your business is an Asset of Value? Only 5.4% of businesses are successfully sold, while 94.6% just close down when the time comes. No matter how invested you are, eventually you may want to move on to something else. Building your business into an Asset of Value means investing the time to strategise and, importantly, to implement the strategy. In other words, make sure that you work “on” your business and not just “in” it.
By Pavlo Phitidis
Knowing how to focus your sales efforts on the most profitable customers can accelerate the growth of your business exponentially. It is a critical exercise because, with limited resources on hand, you need to focus your efforts, to maximise your impact and build your business’ momentum. On this week’s The Money Show with Bruce Whitfield, we outlined a useful technique for positioning your business: