This is the last email in our 4-part series on building a Sellable eCommerce brand.
If you haven't read the first three emails, check your inbox for the subject lines:
- Sellability: how attractive is your biz?
- Sellability: unlock ur growth potential
- Sellability: can it work with another owner?
Sellability is building your business in a way that you could sell if you wanted to, even if you have no plans to sell at the moment.
Your brand's Sellability is based on 4 pillars:
- Growth potential
We talked about Risk, Growth Potential, and Transferability in our last three emails.
The last pillar of a Sellable eComm brand is Documentation.
If you don't have your a clean set of well-documented financials for the past 2 to 3 years...
How can a buyer know how valuable your brand is?
More importantly, how can a buyer know how much he stands to make from buying your business?
- MER/Blended ROAS
- Sellers Discretionary Earnings
- ...And more
These metrics are what will ultimately determine whether you Exit for a 2X multiple or a 5X multiple.
And you best believe...
If your Seller's Discretionary Earnings don't look good...
You won't even receive an offer.
A buyer wants to know they're purchasing an asset that will make them a lot of money.
We've worked with many DTC brand owners...
And we're often surprised by just how many there are who pay very little attention to Documentation.
Take our advice:
If you haven't been thoroughly documenting your business...
- Give yourself a break (you don't know what you don't know...
- Start documenting immediately (or hire someone who can)
Your business will thank you...
And so will your bank account when you get an 8-figure Exit 😉
Two ways we can help:
- We can help you with growth (new customer acquisition,) lowering CPAs, and boosting MER by scaling your Google Ads.
- We can advise you on where you're falling short in your operations and what you need to do to become more "Sellable." We've worked with enough brands over the past 10 years that we're able to offer you valuable insights.
Whichever of these tickle your fancy...
The next step is to book a call with us.