The Naked Truth – Dispelling some myths about selling a business

Naked TruthQuestion –  Would you spend £50k on business consultancy and not see growth?

No, nor would I! But that is exactly the situation I came across recently. A £4m turnover business that paid a business consultancy firm more than £50k over 18 months, in order to grow and prepare it for a longer term exit/sale. 4 years later the business has stagnated, not grown at all, if anything it had lost pace with some of its competitors.

It may well be that this particular business owner didn’t apply sound advice and initiatives, but surely, as a “trusted adviser,” the Consultant should have said early on in the engagement, “…look Bill, you’ve spent a few thousand pounds engaging me, but it’s becoming clear to me that you are not implementing anything we’ve agreed would take place. I don’t want to waste your money or my time if you are not going to be committed to this process. Maybe it would be better that we shelve things for now and come back to it, when you are better placed?”

Surely this approach has far more integrity than simply turning up again and again and raising invoices to the tune of £50,000+?

Clearly, if there had been a significant upturn in sales and profits over the past few years, it would have been money very well spent. But it didn’t, and so it was simply wasted expenditure. Hey, for £50k you could buy a holiday pad in Greece, have far more fun, and get a tan!

If you are going to invest money with a Consultant, make sure it has defined outcomes, e.g. growing real shareholder value. At Evolution, our team deliver clear and tangible results via our “Fit4Growth” programme – providing Business Owners with the extra horsepower they need to grow their business in a sustainable way. Download our brochure and case studies by clicking the link, http://evolutioncbs.co.uk/grow-a-business/

 

Rob Goddard, Managing Director of Evolution Complete Business Sales Ltd

Author of The 11 Commandments and 7 Cardinal Sins of Selling a Business

 

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