Inc Well | Small Business Advice for Chicago Entrepreneurs
A how-to blog for Chicago business

Strategies to Better Sell Your Business




    Every month or so, another list pops up on the Internet offering tips to entrepreneurs on how to better sell their start-up.

    June is, of course, no different.

    Hedge fund manager/author/entrepreneur James Altucher has submitted a list on this very topic to the Washington Post. While it's filled with some that could use some more elaboration ("Most important: don't fail") on the whole it's rather useful.

    For example, Altucher tells an anecdote of learning about the 20:6:3:1 rule from a broker friend of his: 

    Call 20 companies in the space. We identified 20 private equity firms, public companies, private rollups, and ancillary companies all interested in owning a mental health facility. 

    Out of that the ratio worked like magic. We got 6 follow-up meetings. Then three serious meetings, all of which led to offers. Then we took the highest offer (it was double the other offers) and sold the business for $41.5 million. 

    Others are more common sense, like to just keep your mouth shut after the acquisition has gone through and to keep growing your business -- not just stopping your organization after you've struck paydirt.

    Read Altucher's full list at the Washington Post.