Best Business Group for B2B Enterprises
For the entrepreneur who wants to grow their business substantially, then sell it at a premium.
When did you decide to be the best in your target market? If you haven't ... why not?
Those who never decide to be the best ... never will be. By default, they have decided to be second best, or worse. And in business, that is the road to ruin.
So let's be perfectly clear. If you do not want to be the best, this particular opportunity is not for you.
If you do want to be the best, we can assist you to implement a proven development programme that will grow your business dramatically, and enable you to sell it at a premium, or otherwise realise a substantial return from your investment at a level far exceeding what most people achieve.
To participate in Edensilk's Best Business Group programme you and your business must meet all of the following criteria:
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Primarily focused on the Business to Business (B2B) market
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Not yet Number 1 in your target market(s), but committed to becoming so
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Not part of a franchise (ie. you must be free to modify your business model, systems, etc.)
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Prepared to guarantee all your products and services (we'll show you how, and why this is actually in your own best interests)
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Privately owned Small to Medium Enterprise (SME) with no more than 50 employees
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Been trading profitably for at least 2 years with annual turnover of at least $500,000
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Proactive and decisive
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Committed to ambitious growth
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Desire to sell the business at some stage, or otherwise access or realise the improved equity
How will Edensilk's involvement:
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Enhance the growth prospects of your business, and
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Increase the eventual equity value of your business?
The need for commercial confidentiality prevents us from explaining too much in a public domain, but we can offer you the following:
1. Revenue and Profit Growth
Most SME's try to cut corners and do everything the hard way. Rather than apply tried and tested methods, they 'do their own thing' and get an unknown result, which often is an unfavourable result.
Franchising is a way to overcome this; but then you are locked in to someone else's model (for better or worse) - you must share the income - and you are not free to improve the model yourself.
In fact there are many different models for building a business, franchising being only one of them; but all successful business models share a number of significant factors in common.
What if you could access the common denominators of business success in a package that is easy to apply in your own business right now? Then you could avoid all the pitfalls, while retaining freedom to build something unique and that works.
2. Equity Value Increase
It's not uncommon to sell a business with annual turnover of $10 million and a net profit of $1m, for a price of about $1m. (Obviously there are lots of variables, but these are just round numbers we can use as an example because they are about average.)
Furthermore, the owner often is retained on a contract of some sort for several months (or years) with payment terms based on successful continuation of the business.
But if the owner is not needed, this usually means the sale price is higher, maybe $2m.
So an important endeavour of any business owner intent on maximising the return on their investment of many years, sweat and risk, is to get the business to operate without them ... before they try to sell it.
If this could be achieved, a private sale of the sort described above would typically secure a price of 2 x annual profit.
But Wait, There's More!
In a public sale on the stock market, this way of calculating the worth of a business is referred to as the 'Price to Earnings' ratio (PE), in this case 2:1.
If you are at all familiar with such things, you will immediately recognise a PE of 2:1 as a screaming bargain.
Historically, even the most stable of publicly listed companies in Australia with the least exciting PE ratio's, hover in the range of 10:1 or more. That is, the share price is based on 10 years of earnings. Those businesses with greater income generating and growth prospects are more likely to trade at PE's of 15:1 or even greater still.
Consider the examples below across a range of industry sectors in Australia:
|
Industry Sector |
Company Name |
PE Ratio : 1 |
|
Retail - large capitalisation. |
Coles |
25 |
|
Retail - small cap. |
Freedom Furniture |
11 |
|
Banking and Finance - large cap. |
National Australia Bank |
24 |
|
Investment and Fin. svs. - small cap. |
Repcol |
50 |
|
Transport - large cap. |
Brambles |
21 |
|
Telecommunications - large cap. |
Telstra |
16 |
|
Telecommunications - small cap. |
iiNet |
8 |
|
Diversified Industrials - large cap. |
Wesfarmers |
23 |
|
Diversified Industrials - small cap. |
KAZ Group |
18 |
So what do you have to do with your business to get it to attract these sorts of price to earnings ratios? That is, what must you do to get someone to pay you 10 years or more of earnings from your business, up front, without you ever having to be there?
Principally, you have to grow very, very big; establish massive brand recognition and customer loyalty; and present a degree of diversity to offset perceived risk. Typically that's a 10-20 year objective if you are going to do it all by yourself. Or you can try to accelerate your plans with huge advertising budgets, mergers, takeovers, etc.
Or The Best Way ...
If instead, you would like to participate in a business improvement and growth programme with like minded businesses that offer complementary products and services to your own, subject to the signing of confidentiality agreements, we will show you a way to achieve a substantially greater PE ratio for the sale of your business within a 2-5 year timeframe, and without losing the independence of your business in the process. At a minimum, you will rapidly grow the turnover and profitability of your business.
We should clarify that it is still possible to participate in the BBG programme without proceeding to the sale of your business via stock market listing. The programme is structured with options at various points to ensure that participating businesses and their owners remain free to suit their own aims, which may change during the course of the programme for any number of reasons, or because of changing personal or business circumstances.
What To Do Next ...
If you are motivated by the prospect of building your own business to the position of Number 1 in your target market, and selling it at a premium, and you meet all of the criteria listed above, then you should apply to participate in Edensilk's Best Business Group programme by completing the BBG Application Form and returning it to us for evaluation.
There is no cost to apply, but we cannot overemphasise ... the Best Business Group has a specific charter to create an organisation that will embrace it's core principle of being 'Simply The Best'. We are looking for business enterprises we can work with to build a significant entity. We know from lots of past experience that our best results are achieved with people who are proactive and decisive.
The information you send us will be reviewed to decide whether or not an initial meeting should be held. If so, confidentiality agreements will need to be signed beforehand as commercially sensitive information will be shared in relation to this unique programme.
If, after or during your reading of the BBG Application Form, you have any clarifying questions you would like to pose, please contact Edensilk on 08 9271 7661.
If this opportunity is not suited to your intentions, but you know others who may be interested, please feel free to forward this information to them.
Edensilk is currently active in seeking BBG programme applicants; but places will be limited to avoid potential conflicts of interest between programme participants, so don't delay.
P.S. The BBG programme is not the only business development programme offered by Edensilk, just one of them. It's elements are available as part of several programmes, and our programmes can be as varied as the clients we assist. Our materials are inherently flexible, purposely designed so that they may be tailored to the exact situation and needs of any business in order to create uniqueness and competitive advantage. So if you like the sound of our BBG programme, but for some reason it's not suitable for you, call us anyway on 08 9271 7661 and arrange an obligation free appointment to discuss your particular needs and aims, and together we'll work out something that suits you exactly.
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