Welcome to a behind-the-scenes look at the world of entrepreneurship and business growth. Today, we’re diving into a heartfelt conversation between post-exit entrepreneur and host of The Deep Wealth Podcast Jeffrey Feldberg and Chris Younger, the CEO and co-founder of Class VI Partners. Chris has a mission: to empower the entrepreneurial spirit. His journey and experiences are full of wisdom and practical advice for anyone in the business world. Let’s explore some key takeaways from their discussion.
The Importance of Preparation
One of the key lessons from Chris Younger is the need for thorough preparation before selling your business. Chris emphasizes that being ready early on is essential for success. He says, “For a business owner, you should be as intentional around what your game plan is for a transition as you have been about building your business.” Preparing well in advance can avoid many headaches and ensure that everything goes smoothly when it’s time to sell.
Chris Younger and his team at Class VI Partners are dedicated to empowering the entrepreneurial spirit. They believe in supporting business owners by integrating personal and business planning while taking a holistic view of the entrepreneur’s journey.
“Class VI can do a better job for business owners by integrating personal and business planning and by taking a holistic view of the entrepreneur’s journey,” says Chris.
The Value of a Good Narrative
Chris shares an important insight about how businesses are valued. It’s not just the numbers that matter; it’s also the story you tell. “Investors like businesses for a lot of the same reasons that customers do,” says Chris. A compelling narrative that highlights why customers choose your business can capture investors’ attention and increase the value of your company.
The Emotional Journey of Selling a Business
Selling a business isn’t just about numbers and strategy; it’s also an emotional journey. Jeffrey and Chris discuss “deal fatigue,” which happens when both buyer and seller have been at it for a long time. Chris advises keeping the end goal in mind and staying focused on why you started the process in the first place. He emphasizes the importance of having a clear purpose and understanding what a sale will make possible for you personally.
Building a Strong Team
According to Chris, one common mistake entrepreneurs make is not building a business that can operate independently of them. “Most entrepreneurs that we see, there’s some level of dependence on that business owner,” says Chris. He advises business owners to build a team and delegate responsibilities, making the business more scalable and less reliant on one individual.
The Role of Company Culture
Company culture plays a crucial role in the success of any business. Chris explains that sophisticated buyers pay a lot of attention to culture. When investors visit a company, they can quickly sense the type of culture it has. A healthy, collaborative culture can make a company more attractive to buyers and increase its value.
The Impact of AI on Business
Chris is excited about the potential of Artificial Intelligence (AI) to improve the efficiency of his business. He believes AI can help process and analyze information more quickly, allowing his team to focus on higher-value tasks. While AI won’t replace the wisdom and counseling provided by experienced professionals, it can enhance how they do their work.
The Five Stages of Entrepreneurship
Class VI Partners follows a roadmap with five stages: assess, grow, sell, thrive, and give. The last two stages, thrive and give, are particularly noteworthy. Thriving means ensuring that business owners not only succeed financially but also find fulfillment and purpose. Giving back to the community is a big part of this. Chris proudly shares that many of their clients are highly charitable, and their goal is to see a billion dollars given back to communities over time.
In the Assess stage, it’s crucial for entrepreneurs to evaluate their business from various angles. Understanding market trends, financial health, and internal strengths and weaknesses helps set the stage for growth. As your business evolves in the Growth stage, focusing on expanding your market presence, improving product offerings, and solidifying customer relationships is vital.
The Sell stage involves meticulous preparation and planning. Chris explains the importance of being realistic and transparent during the selling process.
“One of the things I’m a huge believer in is preparation. If a company has gone through your program, that’s a huge step up because they’re already addressing issues that will degrade value ahead of time,” advises Chris.
He emphasizes the importance of anticipating challenges and being truthful about a business’s strengths and weaknesses. Presenting an overly rosy image can lead to deal failures, which are time-consuming and costly. “Every business has warts; you want to present the business warts and all,” he says.
Many entrepreneurs don’t plan for life after the exit. Chris highlights the importance of having a vision for your post-exit life. This not only includes financial goals but also personal aspirations and contributions to the community.
Chris explains that transitioning away from a business can be emotionally challenging for many entrepreneurs whose identities may be tied up in their roles. He emphasizes the value of having a clear purpose post-exit to prevent feelings of aimlessness and ensure a fulfilling new chapter.
“This transition away from the business can be quite upsetting. If an entrepreneur hasn’t prepared for that or isn’t running to something with purpose, it can be quite disconcerting for them,” Chris notes.
If Chris Younger could go back in time and give his younger self advice, he would stress the importance of not taking things too seriously. He suggests maintaining a balanced perspective, as life has its ups and downs. Chris says, “It’s never as good as it seems, and it’s never as bad as it seems.” This approach helps in navigating the emotional highs and lows of entrepreneurship.
Give: Impacting the Community
Class VI Partners strongly encourages giving back to the community. They believe that the capital generated from selling a business can significantly impact society. Chris shares how Class VI Partners aims to see their clients driving positive community outcomes.
“Our mission is to empower the entrepreneurial spirit because we believe so strongly in what entrepreneurs mean to our community,” Chris says. He adds, “It’s gratifying to see our clients, some of the most charitable people, give back significantly. We estimate $250 million of our transactions have gone back to the community in some form.”
This kind of giving back not only benefits the community but also enriches the lives of the entrepreneurs. As Chris sees it, having both personal and community goals helps entrepreneurs find fulfillment beyond financial success.
The Role of Company Culture
Sophisticated buyers pay close attention to company culture. A thriving culture can be a major value driver for a business. Chris believes culture plays a crucial role during the acquisition process.
“When I walk into a business, within about five or ten minutes, I can tell you with pretty good accuracy, here’s the type of culture that I see in this business. Is it collaborative? Is there fun going on? Are people communicating?” says Chris.
Buyers will assess if a culture is healthy or stifling. A positive culture can reduce risks and increase a business’s appeal. Therefore, fostering a strong, collaborative culture is not just good for employees but also advantageous when selling the business.
Dealing with Deal Fatigue
The process of selling a business can be exhausting. Chris recognizes the emotional toll it takes on entrepreneurs and stresses the importance of preparing for this emotionally taxing journey.
“No matter how much counseling and advice we give ahead of time, it doesn’t seem to avoid the fatigue that comes with deal-making. We try to keep our clients focused on why they’re doing this and what they hope to achieve in the end,” he shares.
Keeping the end goal in mind can help entrepreneurs navigate the inevitable ups and downs of the selling process.
The Importance of a Post-Exit Plan
One piece of advice Chris echoes is the need for a post-exit plan. It’s important to think about what’s next after selling your business. Without a clear plan, the transition can be unsettling. Chris highlights that having a purpose beyond the business is essential for personal fulfillment.
Chris Younger’s insights are invaluable for anyone looking to grow and eventually sell their business. By focusing on preparation, building a strong team, cultivating a healthy company culture, and having a clear post-exit plan, business owners can set themselves up for success. Remember, it’s not just about financial gains; it’s also about finding fulfillment and giving back to the community.
With Chris’s advice and the right approach, you can navigate the challenges of entrepreneurship and make a meaningful impact on your community while achieving your business goals. Keep thriving and giving!
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