Growth Via Franchising, Built to Sell Makes it Worth Keeping & A DEEPER Dive:Micro M&A Strategies To Grow Your Business
This Week On How2Exit, Chatting With a Franchise Expert, and a Seasoned Broker Talks about Built for Sale - DEEPER into A.I. Good or Bad, it's here.
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Shannon Wilburn is a certified franchise executive and co-founder of Just Between Friends. She was on the How2Exit podcast to talk about her experience as an entrepreneur. Shannon's origin story began when she was 12 and her father, who was the breadwinner of the family, developed multiple sclerosis. He could no longer work, so the family had to make major lifestyle changes. Despite these changes, Shannon's father still had the drive and ambition of a CFO and was determined to make a living on a very limited budget. This inspired Shannon to become an entrepreneur, and eventually, she had a successful exit.
The speaker's father taught her and her sister the importance of budgeting when it came to clothing, leading them to shop at consignment stores. When she went to college, she met her husband, a youth minister, and they moved to Tulsa, Oklahoma. Knowing that their budget wouldn't allow her to stay home with their kids, the speaker's mother informed her of an event in Fort Worth, Texas where families could come together and sell their unused items. This event was a pop-up event, and not your usual storefront or shop. It lasted only a few days before it was gone.
Shannon Wilburn and Devin Tackett co-founded Just Between Friends in Tulsa, a consignment event where people could sell their gently used children's and maternity items. They started in Wilburn's living room, then moved to a three-car garage, then to the Tulsa Fairgrounds. People liked it so much that they began franchising the business.
Shannon Wilburn and Ron Skelton discussed how she started Just Between Friends, a consignment sale business. Now Just Between Friends is a franchise system with over 150 stores that generate almost $42 million in system-wide sales. Franchising has helped Wilburn share the model and give people the opportunity to become business owners and bring the model to their communities. Wilburn is a big proponent of franchising. Listen Here: (53:11)
9 Concepts We Can Learn About Franchises From How2Exit's Interview W/ Shannon Wilburn - Co-Founder: Just Between Friends
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Jim Afinowich is the managing partner of IBG Fox & Fin and has been involved in over 1100 closings. He shared his origin story, stating that he had owned fourteen businesses between the ages of twenty and thirty-four before deciding that he enjoyed doing deals more than running the businesses he owned. He believes that all businesses have common denominators such as managing people, managing money, and providing a product or service the public wants at a competitive price. He believes that anyone working in his firm should have owned and operated a business at some point.
Jim Afinowich, an experienced business owner, advises that the economy is always changing and to be prepared for it. He suggests using an SBA seven A loan to buy or sell a business, and to be aware of debt coverage ratios. During times of prosperity, it is important not to over-leverage, as tighter times are inevitable.
The conversation discussed how multiples values go down when interest rates go up and that the value of a business is very volatile. Ron Skelton mentioned that usually, things don't last more than a year or two before they start correcting things. Jim Afinowich added that it is a fallacy to always try and predict what is going to happen in the future, and that businesses should be run like they're never going to be sold, as well as like they are going to be sold tomorrow. He gave an example of a business owner who was selling in February 2020 and due to the COVID pandemic, the business became unsellable. Three years later, they are just now talking about going back to the market with the business.
Jim talks about the importance of having a plan in place in case of unexpected death and the need to think ahead. He cautions younger business owners who may not think about selling their business for another 30 years. Watch Here:(59:13)
10 Concepts We Can Learn About Selling Your Business From How2Exit's Interview W/ Jim Afinowich, Managing Partner IBG Fox& Fin W/ over 1100 deals
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This week’s “DEEPER” Dive: Micro M&A Strategies To Grow Your Business: 4 Strategies - Mushfiq Sarker
This week I want to share an article written for us by a previous guest. It’s very relevant as many of us could add these smaller deals to improve our business.
Read the full article by the Author, Ronald Skelton, with a paid account, click the share below and tag me in your share to get a paid account for a week, refer 3 people (DM me who you got to sign up), and get a paid account for 90 days. Get 10 signups - FREE FOR A YEAR.
FROM THE Editor:
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