Ecommerce Exits Podcast | Inside look at Building, Buying, Selling and Scaling Ecommerce Businesses

Scott Deetz, founder of Northbound Group talks about the key points in growing the valuation of an e-business before it is sold.

WHAT YOU’LL LEARN

• Introducing the Northbound Group
• 3 and 1: Discovering what the Buyers are looking for
• Process of Engagement of the Northbound Group
• Building the Partner-Supplier to improve cash flow and inventory
• Buyer’s Affective Value and what it means for Amazon sellers
• Common mistakes in Exiting and how to avoid them

KEY POINTS

1. 50% of the cash in one’s pocket would come from exiting the business.
2. Focusing on the key elements that the buyer would be looking for early on is key to securing the valuation that one is expecting for the company.
3. Northbound Group would present a forecast of the future performance of the company, with and without additional capitalization, vs the current value to help owners decide whether they would want to sell. 
4. It is important that suppliers can understand the entire “story” of the business and how it affects the cash flow in order for a successful renegotiation of terms.
5. While earnings of the business may prove its potential, buyers are more interested in the money they could get in the future.
6. Northbound Group could help sellers prepare the materials they need to prepare for the exit so that the owner can continue to focus on growing the business. In this way, there would be a better chance for a higher valuation.

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Vinnie Fisher, founder and CEO of Fully Accountable, an accounting firm that services more than 400 e-businesses talk about the available stimulus packages during the pandemic, what can be done to receive these loans and what else can be done in the current situation.

WHAT YOU’LL LEARN

• The CARES Act and its features and implications
• Qualifying and Applying for the Assistance
• The Mindset of a Business Owner during Times of Crisis
• Common Mistakes of e-businesses

Micheal Jackness, founder of Terran, an e-commerce conglomerate, and EcomCrew podcast, talks about his experience in selling his e-commerce business; the impetus, the preparation and eventual transfer of ownership.

WHAT YOU’LL LEARN

• Background on Terran
• Why Sell?
• Choosing the e-business to sell
• Challenges to a co-mingled business
• Types of Advertising in E-Commerce
• Future plans and Impact of Covid-19

KEY POINTS

1. The need to move on, to relieve the stress caused by running a business is a sure sign that it is time to sell.
2. If one owns several e-businesses, it is best to sell the product that fulfills the selling objective. It could mean selling the best performing brand in order to ensure successful sale.
3. Having clear financial documentation would help in the untangling co-mingled funds in the business.
4. The virus crisis may provide an opportunity to check out good brands of e-businesses you can buy and scale profitability.

Click here to Listen, Subscribe, and Review Ecom Exits Podcast on ApplePodcasts

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review!
Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Subscribe to the eCOM EXITS Podcast now

Chris Yates, partner at Centurica, the biggest due diligence company in the e-commerce acquisition space, walks through the interests and concerns of the buyers of e-businesses. He is also the founder of the Rhodium community, composed of people interested in buying and selling on-line businesses.

WHAT YOU'LL LEARN

• What is Due Diligence?
• Centurica’s Due Diligence Process
• Determinants of Due Diligence
• Deal Killers
• Tips to Prepare for Successful Buy

KEY NOTES

1. Centurica primarily works with buyers in conducting due diligence on sellers, making sure that the buyer’s objectives are met and there is an appropriate fit.
2. Trust is the most important thing; it is not just between buyers and sellers, but also all the agencies that the buyers and sellers are working with, including brokers, 3rd party evaluators and the like. Most deals do not push through due to the breaking of this trust.
3. As early as now, co-mingling of funds, either between businesses or personal and business, should be cleared from the books to show true performance of the business. As much as possible, keep separate accounts per business.
4. Due diligence looks beyond financials. Marketing performance and inventory treatment are equally looked into.
5. The process and level of due diligence is dictated more by the buyer and not just the size of the business being bought.
6. Listing an e-business as SBA qualified helps in increasing the buyer’s pool.

Click here to Listen, Subscribe, and Review Ecom Exits Podcast on ApplePodcasts

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review!

Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Subscribe to the eCOM EXITS Podcast now

Mark Daoust, founder of Quiet Light Brokerage, discusses the intricacies involved in the selling of an e-business regardless of its size and the preparation it would take to prepare a business to sell.

WHAT YOU’LL LEARN

• Background of Quiet Light Brokerage
• How to pick a Broker when selling the Business
• Difference between selling a small e-business (5 figures) and a large one (8 figures)
• The Four Pillars of Business Value
• Approaches of a Broker
• Understanding the Levers of a Business Value

KEY POINTS

1. Quiet Light has been in existence for fourteen years, selling e-businesses. The experience of selling both big and small businesses have helped them identify key elements in a business to make it palatable to buyers.
2. Go with the broker that the seller would feel comfortable with and not just their offers.
3. The size of the business being sold would attract different buyers. Small businesses often attract informal buyers seeking to increase their portfolio. The seller should think of what kind of seller they want to attract in order to determine at what size they will sell their business.
4. Documentation affects the valuation of the e-business. It is through the correct documentation can one see just how much the business is making and its growth potential.
5. As a broker, their concern is the deal structure; not only how much the seller will get but from where it would be coming from and conditions in the payment.
6. Getting to know your company’s value is very important, whether you want to sell or not. This would help you make crucial decisions on the business.

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on Apple Podcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Walker Deibel, author of the book “Buy then Sell: How Acquisition Entrepreneurs Outsmart the Start-Up Game” shares the value of buying e-businesses. Through his experience, he has co-founded 3 start-ups and acquired 7 companies, which includes a business from Quiet Light Brokerage before becoming one of its advisors.

WHAT YOU'LL LEARN

• How Deibel got started in the Buying Game
• Drivers for Buyers
• Effect of the SBA in the Buying Market
• The Importance of the Business “Story”
• Levers to Move in Buying a Business
• Mistakes people make in selling
• Reasons why Buying Deals Don’t Push Through

KEY NOTES

1. Data show that the success rate of entrepreneurs buying existing business is at 98% as opposed to those starting from scratch.
2. SBA funding provided opportunity cash-based loans which no longer required having physical assets to secure a loan.
3. An insightful buyer would not only look for the growth opportunity of the business, but also the optimization opportunities given the buyer's particular skill set.
4. Selling different e-businesses is easier if they are the same niche. Thus, it is important to have a rationale for buying businesses.
5. The story of the business allows the buyer to understand better the business beyond the financial or operational performances. 

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on Apple Podcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Taking from his vast wealth of experience in Management, management coach Mads Singer shares the important points most often neglected by entrepreneurs regarding Management.

WHAT YOU’LL LEARN

• Who is Mads Singer
• Common Management Mistakes
• Managing your Team
• Importance of Reading Behaviors
• Managing in times of Crisis
• Fostering Healthy Competition Among Teams
• Advice to Business who are taking a hit because of the Crisis
• Final Tips on Management

KEY POINTS

1. One mistake of companies is that they forget to train their staff who are promoted into management positions. This mistake would mean that a staff who was performing well, may suddenly under perform because he is forced to learn on the job.
2. When you are a manager, it is no longer about you, but the people who work under you.
3. Get to know your staff, in this way, you would be able to coach and guide them better.
4. Learn to read behaviors. It is a better indicator than any interview and would help you place the right person to the right position.
5. Crisis would always come on a business. It is better to have a framework wherein contingency plans are in place as preparation in case a crisis occurs.
6. It is better to push high performers than spend too much time with under performers. 

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on Apple Podcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

In this special episode, Itamar Marani, of the Marani Consulting, offers sage advice on enlivening the entrepreneurial spirit during crisis situations.

WHAT YOU’LL LEARN

• “We do not rise to the occasion, we will fall to the lowest level of training”
• Remaining Calm during Tumultuous Times
• The importance of Daily Discipline and Proper Routine
• Having the Right Mindset

KEY POINTS

1. Entrepreneurs think that crisis situations are when they rise to meet the challenges. That rarely happens because we are in the middle of stress. It is important to detach from the situation and calm the mind to properly strategize.
2. It is important to define clear triggers that would activate a contingency plan. In this way, we can avoid being emotional by making the hard decisions.
3. Having focus is the key in being able to see the current opportunities in the situation.
4. Highlighting the wins for the day is also important in having a good business outlook.
5. Exercise: this helps in re-focusing and venting stress.

If you’re looking for a new perspective by employing better tactics and strategies to gain a clearer goal for you and your team, and indeed how to shift mentality during times of crisis, make sure to visit the Marani Consulting website. 

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on Apple Podcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Zack Leonard, founder of Gembah, walks us through the process they take in helping e-businesses design, manufacture and manage the supply chain of their products.

WHAT YOU'LL LEARN

• What is Gembah
• How Gembah helps their customers in Product Development and Manufacture
• Product and Factory Certification: The often-forgotten Step
• Effect of the Coronavirus
• Tip for Exiting Business

KEY POINTS

1. Gembah provides a product innovation platform for the clients to help them design, manufacture and ship either new products or iteration of existing products.
2. A critical step people need to be educated on is compliance. They have to ensure that the product and at times, the factory where the products are produced have passed the requirements of certifying agencies. This ensures that the product released to the market is safe and not liable for legal action.
3. The current pandemic has caused some laxity in the certification of factories making PPE; due primarily because the demand is just too much for current supply to meet.
4. There is an observable boost in sales among essential and at home yet non-essential products in the e-market.
5. Learn more about the entire product creation process and the solutions offered by Zack and his team by visiting the Gembah website, or direct inquiries to [email protected].

DragonFlip co-founder and partner, Wilhelm Reich, discusses the selling and buying market in Germany, appealing to different kinds of online business buyers, and financing options for sellers.

WHAT YOU’LL LEARN

• What is DragonFlip
• Accessing the services of DragonFlip
• Kinds of Buyers of e-businesses in Germany
• Selling process and due diligence
• Buying Process and due diligence
• Financing options for Sellers
• Current Situation

KEY POINTS

1. DragonFlip is the largest eCommerce marketplace in Germany to date. However, interested sellers would have to pass their requirements before they are taken in as clients.
2. They deal mostly with either private buyers or strategic buyers. The choice would depend on the kind of business being sold, the value or cost of the business and the sellers operational set-up.
3. The pre-vetting period is important to determine the seller’s motivation in selling the e-business.
4. DragonFlip’s client is the seller and not the buyer. The buyer would have to exercise their own due diligence on the e-business they are interested in.
5. In Germany, the eCommerce market place is still new, so most banks are wary of providing financing for buyers. These banks tend to be stricter on document requirements.
6. The transparency of the seller on the business condition and contracts of the e-business is key to ensuring a successful sale.
7. Direct inquiries about the eCommerce landscape or options for selling your online business in Germany to [email protected]. You may also choose to visit the Dragon Flip website for more information.