leads you produce. This is the heartbeat of any profitable business.
5. What’s your exit strategy?
As the founder of the business one of the critical things an investor will want to know from you is what’s your exit strategy?
For a business to be worth investing in, it cannot be tied to the owner. It’s important therefore, that the owner has a clear plan not only to ensure the business is not wrapped around them, but they know who are the potential buyers of their business.
Investors invest in businesses that can be built and then SOLD. Most investors are looking for at least a 10x return on their investment and they want to see a plan for the sale of the business within 3 to 6 years.
Now the investor doesn’t care if the owners wants to stay on in the business after it’s sold. What matters is there is a CLEAR EXIT STRATEGY.
As a consultant it’s also important that you understand what you're end game is. That you have a clear exit strategy that will ensure that the business can succeed without your ongoing input. You’re responsible for helping the client become self sufficient and not dependant on your continuous input.
How did you go answering the 5 questions?
1. Do you know the Customer Problem you solve?
2. Can you quickly and concisely communicate your USP?
3. Do you know how to demonstrate the value you offer?
4. Do you have a plan for attracting prospects and converting them into customers?
5. Have you got an exit strategy in place?
As I said from the outset, these questions
are not just essential for an entrepreneur seeking investment, they are a fundamental framework for the success of any consultant.
Regardless of your desire to seek investment, if you can answer YES to these 5 critical questions then your consultancy is on the pathway to success.
Remember, Rome wasn’t built in a day. To build a great consultancy takes time, energy, persistence and unwavering belief in what you are doing.
About the Author
Paul McCarthy
CEO and Founder of the Marketers Club
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Paul McCarthy is Australia’s RockStar Marketer. An award wining speaker and author of the acclaimed book ’8 Steps to a Remarkable Business’, Paul has been entertaining and educating audiences for nearly a decade.
If you want a presentation that really ROCKS, then look no further than Australia’s RockStar Marketer, Paul McCarthy. Paul is a rare speaker with the ability to really connect with audiences and compel people to want to reignite their desire to take action.
A former professional musician, Paul provides any conference with a unique blend of business savvy and first class entertainment. Whether exploring his unique approach to Marketing, Creating Momentum or Winning More Business, Paul’s down-to-earth, innovative and fun style make for an unforgettable experience.
Paul is a born performer. A former lead singer, Paul uses musical talents to powerful effect to bond and move an audience. A natural storyteller Paul draws on his diverse and colourful background to share amazing stories that people instantly connect with. Paul brings humour and flair to every presentation and his natural warmth make him a hit with audiences everywhere which is reflected in the feedback he constantly receives.
Paul can be contacted on
1300 788 839 or email [email protected]