Qualities of an Amazon FBA Business for Selling with Dave Storey
Welcome to the tank AAC collective my friends now look if your listening for hacks and short term tactics afraid, you are in the wrong place. Let me? Tell. You. About the ten K. collective mastermind. First of all his members meet in person, they know each other. Well, they all make over half a million dollars a year several, make several millennia many have doubled their revenue of the last eighteen months. If you're that kind of person, then this podcast is made for you. Today's episode is sponsored by the new ECOMMERCE podcast, the e commerce leader. The podcast is hosted by yours truly and Jason Miles? multi-million dollar shop owner, and Younis highest rated economists instructor. You're the owner of a thriving online business. Anyone's become the best ecommerce leader. You can be, it's got your name it for free guides, many courses on many topics. Go to www dot, the ECOMMERCE leader Dot Com. Welcome to the show. Today, we are going to continue to talk with Dave story who is not only a very meticulous process oriented guy, but has built and sold his own Amazon business, and then applied his process thinking to the process of building a business to sell which I think is really important to cover. We cover this topic from several different angles from different brokers. Before this time, I think is a different take because Davis actually being a business owner himself. Himself in the space, which is a bit of a different take on things and today we're going discuss specifically, what's buyers are looking for? So if you're gonNA, Treat Your Business as a sellable asset, particularly important to think of it in those terms and to reverse engineer from what the buyers want would of business buyer is looking for, and also out of all the possible universe things, you could do to move the needle on increasing your businesses value which things. Could you do I'm which things can you focus on how to deal with that? We cover that today with Dave Logan stuff, really important. Thinking I think for any serious EPSOM business bill, SA- sticking around listen take notes, and of course, you can always find notes at the blog at half dot com or in this case, it's part of ten K. collective ten K. COLLECTIVE DOT com. Thanks for listening. Let's get into the show. You've told a couple of times about the importance of knowing what Biza looking for. So in your conversations with Bison brokers and your experience as well. What would you say the main things are buys looking for? categorized. The main one is is low risk. So essentially what is looking to do is get that return investments through best thing business. The one that lasts audible if there are risks involved in not then I never sigh than that's GonNa just lower, the amount of the multiplier that they will. Business. The other one is the verify ability aspect. They must be verified that you'll business is making the money that you will saying it's making if you financial accounts are all over the place in different businesses mixed in the cabin, Ymca Documentation writing is not numbered instruction. Than, it's GonNa be very difficult for them verifying. It's going to be big risk, the numbers that they verified correct relevant on last Kinda cast. The biggest one is growth that looking for business, which has got consistent growth and has had consistent growth over at least this twelve month period on. This comes back to the timing when you sell it. If you think that you're GONNA sell it and get rid. Rid of it. When it's stagnated, that's a big big mistake by looking for a business which is growing when they start looking at. When you go into the actual period, this contractual period, this due-diligence could last months until they're going to be looking at these figures month. So you gotTa make sure Your Business is continually growing over those months because if it's not to it stagnates again, back-off funding lower the. Brady, it sounds like it's all about engineering slash I. Suppose it makes to like whole business ready between reading the trends in your market versus engineering from what is under your control situation such that the combination results in an up going trajectory over the months and months really before you even start selling, and then also you very point which is the takes months to sell on gateway. The diligent business during that period, you'll business needs to look attractive as well. So you met very good point. So we talked a lot about the timing and the. The things you need to look for some classic errors. Really helpful. So tell me about what things we need to work on. Then you said, we need to work from the beginning or is it is possible to make the business more valuable. So are the main elements that will make the business more valuable. Guess. We'll just touched on at this time in order to accurately workout when your business is optimally growing at a certain rate is going to continue to grow. You got to give yourself at least six months after that point for continuous growth. It doesn't happen to say business, which is in decline or stagnate. You need financial tool on this is bill in the course of bill special bespoke financial planning to forecast the business very accurately for at least twenty four months, you can forecast exactly what's going to happen on early products. You can work out looking back from your selling price target. You can look at how long it's GonNa take how many. Need when you need products based upon the restrictions flow. So the software tool is got a very accurate cash flow analyzer, which he can work out over the twenty four month period. So you can effectively Rooney business with a positive cash flow dropping below a fifty mount, optimize the growth of an optimized, the value of it over this critical of Shula. Shula based on your analysis in your forecast that Yoga be selling in a period of optimum growth mobile continue to grow I. Thought is the most important thing that you can do any business. You WanNA maximize the volume. So you already saying that your cash flow protection tool, which by the way, I think he's really such a commonality between all the really serious as. As successful business owners, I know in the amas basin and beyond as this awareness cash flowing projection, the your toll is going to really just help you just find choon that timing more than anything else interesting. Once you start us this to, you'd be amazed at the effects of things like show elite timezone, your deliveries from supplies, defective knocking dollar off it may. May seem just a little bit when you extend the over two years, it has a huge difference on business value. This tool allows you to understand a lot any business in build your financial planning strategy behind hitting a certain targets or whatever, that may be whatever you want to sell the business for one of the time maybe and the other thing that strikes me. To effects on very every day said of tactical level stuff like when you negotiating with supplies, for example, they're going to be two effects. One is it. You'RE GONNA, make more businesslike decisions because you can be willing to walk away from things that really you're not just thinking. Well, it's only a dollar. Let's get it out there. KIEF. WAS COMING UP. You're going to be thinking. Okay. So now, but that's going to actually add up unit saved might actually be a huge difference in your financial picture three years down the line. So that's the first thing change. You think, but the second always starts me and I think this is true. True for areas is diverse acting and I used to work with a lot of actors, singers, and also negotiation in any situation trying to influence somebody having a really clear plan on mental focus. Isn't something that we can put the finger on knowing because they don't know your inside plan when you're talking. But the fact you have a plan and focus was communicates some level an I. Don't even know why it's a psychological mystery, but it's true if you have a plan on a focused and you know your numbers, the person on the other side of the table picks up on especially the Chinese super sharp and they know that number. And that you get a better negotiation, just be my spray somebody not done if that's being expressed as well. That is very true. This negotiation with the supplier, certainly, the initial when choosing the supplies absolutely critical, you getting the lowest price to you securing the best level of quality. You got to go about it in a certain way, and you're right. They do the two pickup if you not professional if you haven't got a plan behind it, so it's very important to not only betray those than Trying. To portray having a plan but not having one I, think is worse than having a plan and be cool about it. Because if you've got a plan and you act according to plan, D. do will communicate that. Anyway, I've done the need to sweat that in negotiation, you can simply tell. Mike. Lines. This and the truth is a great negotiation. Till you can say, right, we all willing to pay up to one quarter of the selling price for our landed cost. ORLANDO. Causes. Freight's GonNa can about this. You can see on Amazon yourself roughly how much see sell full therefore, the maximum we're GONNA. Pay. You is five dollars a unit or whatever it is, and if you'll very very clear in your own mind, you can just tell them the truth and actually then sometimes you just will walk away from the deal because for both size, it doesn't make sense but says wasted time while on this kind of used car salesman thing. Just thinking about the next sales like they say six, you say for you end up on five. Well, if the numbers five doesn't make sense, you shouldn't say, yes to it, and what's the difference? Right? I mean, we go into negotiation theory, but I, think, somehow it works. So what what are the main things then apart from financial planning timing? Obviously, really critical, what are the other main elements that you should be working on to to maximize the value of Your Business? I. Guess You have to fully understand all of the factors which affect your business volume. So the multiply that will be used to suddenly get derived business volume. As a lot of them. There's a lot of things can affect you unless you know them by sending. You don't know what you don't know. So you have to understand exactly what they are. And the other thing to consider it as each is different, some things may be important, some Amazon businesses, but less important You may be doing quite well with this thing, but another business might be really Purana So you need to understand what these things are than workout, which ones that you can build in your plan that you can have the least amount of effort which will produce you the most amount results, and they're the ones that you need to work on is if you're working on the other things which a lot of effort but don't produce. Produce you much results than than. That's GonNa really get you anywhere, but you also have to understand that you can't do better than I cannot on all these things at once. So you can consider getting the mole before business you have to leave by with some low hanging fruit. They may have skills that you don't have in marketing in DC identity may have different skills, different connections and they'll pick up on this. So they need to see some of these things left out for them that they can pick open dry VR wide through business. Crave. Very interesting. All right. So that brings me a couple of obvious questions, but there are a lot of factors that can affect business value and we don't overwhelm the listener anymore than the person trying to build the business. But what are the main factors apart from we've talked about timing and cash flow planning? What are the other main factors that you should at least consider looking into? Mentioned growth, which is the big one amid that multiply. But the multiplies, it's a bit of a block caught. Can Be made up of so many different factors, and that's what I was talking about what you really have to understand. and. What about the identifying the elements of these multiple possibilities? What would you say the main set of processes you talked about the low hanging thing to least effort for Max results, which makes total sense to me obsolete. The how do we begin to identify those things? I've got a method in the training corps so? Essentially us what scullery doc, Johnson identifiable, all these factors all on a sip electron with leggings dot bold style ring. The inner rings of Started Wall in the outer rings. Tens of in really. Well on, let's say conversion rates business fantastic conversion, rink annuity score ten. So he know straight away, that's not concentrate all. But if you'll very bag and you've got a walnut that the organization if he business researched on, you haven't done any processes young, any system is. On. Then that's going to get into a one or if you don't have any financial method, any financial planning in place Also. Once centrally analyze all the factors which are applicable business in work out the ones from this method, teach really the ones that you need to be working on a new business that make sense in bulletin sing is in between step the say, okay. What are the main elements get up? Where are you at now and then you pick your fights. So one on financial planning, presumably, you're not gonna into be attended the end but needs to be. Be, like good enough I team, and then he had to onto somebody, he's a Whiz it at financial planning Michael. This all comes down to focus on what matters deciding, what not to do is important as deciding what to do and this if you've got methods and tools to work out on what not to do what to do, and you can focus on those things you need to do in. That's way you get the maximum gain in your. Your business new drive volume I. Remember the last time you come in the puck Kassem, the clip used at the beginning. was you talk about the absolute importance of focus in? If you haven't had a chance to listen to commend that because there was a big segment that we would spot, which I thought was really useful which I know you cover in your training as well. So the the other thing is, then how do you once you've? You've identified what the possible let are, what you where you're at on the scam ten, what you're going gonNA focus on and what I like is way way you're not gonNA focus on, which is I guess where we can breathe a sigh of relief for like it's not all added work. So you don't do I'm glad to hear that. So how do we? How do we actually make actually happen in real life once we've got that theoretical understanding? This is absolutely key. So you've got all these things. Do. Now, now you've you've worked out from the factors that you need to. Influence them apply and the valley business. You know what you need, any supply chain business organization, what you need to do for me financial plan, which is a big long Tesla's how do you get it to actually happen unless awry, bringing mind twenty years experience in project management. On the course I train out a essentially a method of planning, which is a simplistic version. I don't WanNa bulk people down with complicated tools and processes. That's the not wear would weren't coming from. It's a simple way a really getting a hold of all these tasks and making sure that they actually haven't building the main to a proper professional plan in by. By. The way it should be having plumbing. You not having won a planning meeting every week in your business without fail every Monday Tuesday morning, whatever needs to be has to be right. But let's vote on the planet wary at that. With the plan. What we need to do just only behind do things are we getting on? That's the essence of planning. It's not just having a plan. You've actually got work the plan on regular basis because you're not planning unless you actually regularly working the plan and not swap teach. Oh, by the way I think for a lot of people would absolutely include myself politically aware more successful. And rich onto myself that I think pretty much most people who start businesses have that streak of independence, which you obviously have as well and wanting to teach creative creative type. Often. Not really go very well with the planning way of thinking. So I think it said skillset and even a mindset. The pretty much most people know who small business at some point have to get a lot better out so. It's not sexy. Is like saying, here's the latest Little Rock, use this thing and get magically more traffic, and then seal the number on your dashboard of the sales. This is grind, right. But this is what actually makes him the money I'm glad. You, winning to dig into this deep because of show planning makes you the expert of this off the tell you that all migrants achievements, ermine, entire career come from data planning, working the plan. Jeff I. Understand. Why so many people? Don't follow a plan obscene many reasons why the old drop upon preps? The main one is because things don't run to the plan because. The plan yet. You've gotTa make minor adjustments. You don't change your objectives. He changes strategy how it get back. Once realize that the plan is dynamic. Can you go continually continually just Justin adjusted stale not off the quickest way to get the ago. I could have hired each day to tell me the things I need to hear because. I just think about a couple of protests I've got on the go and it's not Amazon business south searches related of information products, but it that's exactly what I needed to hit doesn't change the objectives change the strategy I. Think he was saying that the quickest way to they, I'm just writing a couple of tweets bulls here. The quickest way to the goal is via the plan. I mean I guess it comes down to having faith in the plan and your ability to work plan by seeing the evidence of the results right and in my. My case maybe on worse than your average Amazon. Selah? But I think there's quite a lot people that I know that we have meetings and somebody called somebody on the other week intake elective mastermind meeting. They said, so look so and so you mentioned this three meetings in a row. I keep basically said, you're going to do it or not I mean he was he wasn't quite as blunt is that, but it was pretty blunt and actually I thought you know what? He's serving that fellow member of the Moss. My really well with this because. Holding each other accountable is one of the main things we can do. I, really think it's so easy to stay a big goal. Old Profess an interest in X. winds winds that or we must do that. Oh. Yeah. I really should do that phrases like that. Right. So I'm really glad to hear that I think the sending a message I need to hip also Radi generally, very, very needed. So you'll skills are highly needed in this area I think is fairly unique. The Amazon seller is putting out about how to build a business to sell as opposed to a business broker. So I knew a webinars well, tell us a bit about the web that people can learn from me. To in the weapon, I'm going to essentially tell you exactly how to maximize the value and celebrate FBI business band critically unhappy. So many people are doing this right now, why not selling your business could cost you millions saw talked about there's an optimum time to sell that. You could be right now. If you don't know, it's now and you leave go another year. What happened to make it happen to you not. That's a lot of money we're talking. Talking about that the losing and then also gonNa tell you exactly why billing business to sell is actually no more work than what you doing right now in a business, it could be an and this is what I found actually less. That's really lovely message to here to say. So if you want to get access to the Webinar folks, you can get amazing FBI dot com for slash build to sell as right bill right byod not built, which is. Confusingly, there's a book by business breakable built to sell, which is very similar, build to sell amazing dot com forward, slash build to sell a now you've got, you've done your beater testing launch of the course which oversees gone done very well from what you say of of the members I. Know that a couple of guys the I know in in the community have interacted with that and find it very helpful as well. So you've got your new course coming up, what is it the end of July? That's GONNA under July. Stay really excited about it is it's my turn to give something back the people in Amazon community. Absolutely. Naturally of discussing before the show basically is pretty unique I. Mean, there's a lot of courses including I've got a one of my out there on how to build the business in general, but to build it to sell I, think is a different perspective, really like it sending I feel I need to think more deeply about as well. So we valuable thing to have out there. So Davis lots of things we discuss really really interesting insights. What would you say your sort of? Actionable takeaways from today for people to go and think about or even start implementing. I recognized of business can be saleable set in. Amazon, business is definitely not the the market for for some businesses is growing by as understanding of this, otherwise out of transfer, the assets of them. It's only gonNA prove the forecast of it's a sellable. On Selling Your Business is the most valuable thing it can do for you. You have to understand that if you want to generate wealth, that's the way to do it. Living off the cash flow of business is fine. He could be making a good living. But if you really want generate wealth, you need to sell it and the last phone guesses. If you WANNA, get maximum value millions, size business, you must have a plum you. You must have applauded instructed on exactly the things that you need to do to maximize its following. MAZING. That's ready ready, clear set of takeaway Dave. Many many thanks. If you're listening folks dude get along that Webinar, which should be available as of the time of the publication of this podcast. Amazing. FBI. Dot Com for slash bill to sell and suggests remains for me to save Dave many many. Thanks for coming on the show. You might go. It's been great. Thanks for listening to ten K. collective podcast part of the family of amazing FDA. PODCASTS. Today's episode is sponsored by the new ECOMMERCE podcast. The ECOMMERCE leader. The podcast is hosted by yours truly and Jason Miles, multi-million dollar shop owner, and Younis highest rated ECOMMERCE instructor. If you're the owner of a thriving online business and become the best ecommerce leader, you can be it's got your name might for free guides and many on many topics. Go to www dot the ECOMMERCE leader dot Com.