Unlocking Business

Value

Tony Arena

Reasons People Buy a Business

AutonomyAutonomyAutonomyAutonomy

MasteryMasteryMasteryMastery

PurposePurposePurposePurpose

“I can control my own destiny”

“I am doing what I love”

“What I do has meaning”

“I am my own boss”

“I am in the Zone”

“I am making a difference”

• Will I enjoy running the business?• Will I enjoy running the business?

•Will it satisfy my inner life goals?•Will it satisfy my inner life goals?

• Will I control my future?• Will I control my future?

• Will I be able to grow it?• Will I be able to grow it?

• Will I make enough profit?• Will I make enough profit?

•Will I be able to sell it?•Will I be able to sell it?

The Business Brain

Lower LeftLower Left““Researcher, Researcher, Accountant”Accountant”

Lower LeftLower Left““Researcher, Researcher, Accountant”Accountant”

Lower RightLower Right““Customer Customer

Service, Service, Trainer, Team Trainer, Team

Builder”Builder”

Lower RightLower Right““Customer Customer

Service, Service, Trainer, Team Trainer, Team

Builder”Builder”

Upper RightUpper Right““Founder, Founder, Marketer”Marketer”

Upper RightUpper Right““Founder, Founder, Marketer”Marketer”

Upper LeftUpper Left““Coach, Coach,

Negotiator”Negotiator”

Upper LeftUpper Left““Coach, Coach,

Negotiator”Negotiator”

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Sales

Marketing

Accounting

IT

Fun

ServiceShipping

Planning

What’s It Worth?

Risk and Return by Business Feature

High

Low

UnfashionablePersonal sellingReliant on ownerEasy entry by competitorsLittle infrastructure Little Track Record

Growth IndustryLarger businessesStrong BrandProtection by LawOngoing IncomeSystemisedConsistent Growth

High

Low

100%

20%

Risk ROI

33%

Risk and Return by Business Type

Service RetailHair SalonCleaningReal EstateSmall Manuf.CateringRestaurant

Pty ManagementOnline BusinessNiche ProductFranchiseHotelsCaravan Park

High

Low

Risk

High

Low

100%

20%

ROI

33%

Keys to Business Value

•Prepare Early (Business Plan)

•Form Your Team

•Systemise

•Reduce Owner’s Influence

•Reality Test

The Difference

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The Difference

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are needed to see this picture.

What’s Hot

Franchise“Online with Outsourcing” Business ModelHome BusinessFood, Liquor, Petrol, Gaming.Serving the ageing demographicHealth related (Gyms-Beauty-Cosmetic)

Top Five

Organic Farming

Online Info Services

Insurance Brokerage

Mobile Telecom Carriers

Alternative Health

Bottom Five

Insulation Services

Wired Telecom Carriers

Paper Manufacturing

Video Hire Outlets

Grape Growing

FarmsFactoriesOfficesAnywhere?

AffluenceTechnology

Globalisation

Business in 2010

Farms

Factories

Offices

Anywhere?

Affluence

Globalisation

Technology

Remote Workers Marketing is Free

War

Everything is Free

Job Market

Success in business requires training and discipline and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were.

David Rockerfeller