Build the perfect infrastructure for your business

Have you ever wondered why some businesses prosper while others plummet, or why some entrepreneurs succeed while so many others fail? Why do some companies sell for maximum value, some sell for pennies on the dollar, and some don't sell at all?

Over the past 20 years, my clients have asked me all of the above questions. Many of them expect me to give a variety of complex answers. They're quite surprised when I just say "YES, I know the answer and it's not complicated, it's actually quite simple!"

As a 22-year veteran of the M&A industry, I've sold businesses in virtually every vertical industry, and I can assure you that while industries have their nuances, the issues and mistakes committed are generally the same. Often, it's a lack of knowledge that gets business owners into trouble. Most of the time, however, it is a lack of implementation that leads to a lack of success.

I always tell my clients that lack of profit, lack of success, and lack of a huge buyback is never the problem, it's the symptom of not operating the Seiler Tucker Six < em>P. The 6Ps are the foundation of the business, it's your infrastructure. It's what allows you to build a sustainable, scalable and sellable business. When you buy, build, or have a home built, I'm sure you make sure there's a solid foundation to weather any storms that may come your way to keep you and your family safe. The same goes for a business, the Six P will help you weather any financial storms you may encounter along the way, and it will greatly increase your success towards Exit Rich.

According to Steve Forbes, 80% of businesses on the market will never sell, giving business owners less than a 20% chance of closing successfully. The main reason companies don't sell is lack of infrastructure.

In my experience, business owners don't plan to fail, they fail to plan. Most business owners have built themselves a glorified job that they go to work at every day, rather than building a business that works for them. If your car runs poorly, it usually doesn't run on 6 cylinders, so does your business...

You must run your business on all six cylinders, in other words, every Seiler Tucker Six P.

If any of the six P's are missing and/or misaligned, the business will be underperforming, slow, and lacking in profits.

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We'll dive into the Six Ps in future articles. However, to whet your appetite and gauge the success or failure of your business, rate your business on a scale of 1 to 5, with one being the worst and five being the best, with six Ps each.

PEOPLE:Do you have the right people in the right places? Do you have a management team, can the business function without you?

PRODUCT:Is your product, service or industry growing or disappearing? For example, do you own a business like Amazon and are you in your prime? Or do you own a company like Blockbuster and are you on the verge of bankruptcy and bankruptcy? Do you have at least 3-5 congruent sources of income?

PROCESSES:Are your processes designed with the customer experience in mind or are they based on your own agenda? Are you creating a WOW experience for your customers? Does each department have policy and procedure manuals, as well as an SOP checklist?

OWNER: Do you have a good brand image? Do you have any federal trademarks, patents, transfer agreements, databases, resourceful component, recurring subscription model, celebrity endorsements, digital real estate, etc. ?

PATRONS:Do you have a loyal customer base that will go out of their way to buy your products/services? Do you have a customer concentration where 80% of your revenue comes from 20% of your customers? Or do you have a diversified customer base? Are your customers aging and need to be replaced by new generations?

PROFITS:Does your business operate with the highest profit margins in your industry? Are you generating profit or losing money? Do you have at least one year of working capital in savings?