In Built to Sell Radio episode 449, Kiri Masters talks about how she built her company, Bobsled Marketing, from her personal brand as an Amazon expert. She explains how important it was to create systems and hire the right team so the business could run without her. Masters shares her experience of receiving offers to buy her company, the challenges of earn-outs, and how to avoid problems during the sale process. She offers tips on structuring deals, handling negotiations, and preparing a business for sale.
Kiri Masters started Bobsled Marketing based on her personal brand as an expert in selling on Amazon and Walmart. At first, her business relied on her expertise, but to grow, she needed to build a company that could operate without her daily involvement. This transition was crucial to making Bobsled a sellable business.
To scale the business, Masters had to streamline operations, set up solid processes, and bring on a good team. This helped her move away from the day-to-day work and allowed her to focus on long-term growth. She explains how these steps made Bobsled more appealing to potential buyers.
When Masters received offers to buy Bobsled, she realized that not all offers were as good as they seemed. Some included conditions, like an "earn-out," where part of the sale price is paid later, based on the company’s future performance. She highlights the importance of understanding these conditions and picking an offer that aligns with your long-term goals.
One key challenge Masters faced was missing an earn-out target, which meant she didn’t receive all the money from the sale as planned. She discusses how this impacted her and what she learned from the experience. Masters offers advice on negotiating earn-outs and reducing risk in the process.
Masters talks about common problems that can happen during the sale of a business, like early deal termination or hidden liabilities. She stresses the importance of doing proper research and making sure both the buyer and seller fully understand the deal to avoid surprises later.
For entrepreneurs thinking about selling their business, Masters advises focusing on building a company that doesn’t rely on the founder. This includes creating strong teams and systems that will continue to run smoothly after the sale. This not only attracts more buyers but also helps ensure a smoother transition.
Kiri Masters’ story provides valuable lessons on turning a personal brand into a thriving, sellable business. Her experience navigating acquisition deals, managing earn-outs, and scaling her company offers practical advice for entrepreneurs looking to sell their businesses. If you want to learn more about planning your Endgame by Downloading your Free eBook here