My Top 5 Takeaways after Selling | Franchise Secrets

My Top 5 Takeaways after Selling

I have been thinking about this stuff for about seven months since we (myself and 3 partners) engaged in the LONG process to sell our portfolio of 12 Sola Salon Studio locations in Orange County.

Here are my 5 takeaways on building a business to maximize an exit sales price:

#1  Have an exit strategy in mind when buying.

#2  Build your team with an exit strategy in mind.

#3  Buy more territories to allow for growth and expansion.

#4  Open 3 locations ASAP to help future locations open easier and faster.

#5  Hire and empower key management positions sooner than later.

Here is some info on the sale from Franchising.com

Now, we did not do everything right, but together we sure did a lot right, and it’s not because of how smart I am (I do not like the be the “smartest” guy in the room).

I have intentionally put myself around people that have done 9 figure deals since I have wanted to do an 8 figure deal.  I did not want to learn from someone who had done it 20 years ago, but rather from people who have recently done this.

I am glad I did since it reinforced that we were doing some of the things right in my 5 takeaways and other things we adjusted in recent years to have a business that could fetch a higher multiple if we sold.

It is also easier to run a business that is designed for the sale vs. built on the owner’s strengths and efforts.

PS – I am grateful to have learned a long time ago not to look at a business from the consumer’s view.  If I had done that, then I would have never been in the “real estate business with salon professionals” I would have thought it was a “beauty salon” and would never have the opportunity to do what I have just done.

I had a little fun with this Facebook Live since Modern Salon reported on this.

View my video