How COVID-19 Can Help You Double the Value of Your Business - PowerPoint PPT Presentation

How COVID-19 Can Help You Double the Value of Your Business Presented by:

Good Businesses Sell In ANY Market! � 2

3 Questions Before You Sell? 1. Are you ready to sell your business? 2. Will the market pay the price you want? 3. Is your business READY to sell? Tip: Do NOT Panic Sell Right Now! � 3

“If you can't read the scoreboard . You don't know the score. If you don't know the score, you can't tell the winners from the losers.” - Warren Bu ff et � 4

Investor Scoreboard 101 • Hold EVERY SKU accountable for ROI - Zero Emotion • Profit Per Channel - Marketplace, Country, Website, Retail/Wholesale etc • Profit Trends YoY/MoM • Product Lifecycle! Fad, Competition, Innovation • ROI on Inventory and Inventory Turns • History helps model the future. You might have more time now thanks to COVID-19 More Resources - TheFBAbroker.com/DOUBLE � 5

Margin is KING • No Margin = No Business • Gross Margins Target 50-80% • Net Profit Target - 30-50% • Take time to improve e.g. 8%-25% net � 6

Single Target Market • Develop a FOCUSED Brand • Before, During and After • High Margin Expansion Only • Research recession trends for your market • What is changing for your customers right now? • Baby market will boom in the next 9-10 months, Home fitness booming now but will it sustain? � 7

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$7.98 $1,500.00 � 9

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3 Things to do TODAY 1. Research your Niche Market in Recession What happened in 2008 to your niche? Which brands made it through that time? 2. Follow the flow of $ Money $ Your customers are spending money. Find out where and see how you can create value to ensure your business is sustainable. 3. Resources TheFBAbroker.com/DOUBLE � 12

Value Cheatsheet • Product Diversification (30% Rule) • Sales Channel Diversification (30% Rule) Control Valued Higher • Brand and Single Target Market • Longevity of Market e.g. Trucking vs HVAC + 20 Year Horizon • Trends YoY/MoM both Revenue and Profit. Profit growth can outweigh Revenue • Product Lifecycle • Team/Corporate Infrastructure - Transferable • Accounting - Clean Financials � 13