Business Valuations

[LostDollar]

I'm a commercial insurance broker. From personal experience, your time will be much better spent walking door to door with business cards and introducing yourself.

If you are any good at canvasing, you'll be shocked at how effective this is.

How do you get past "gatekeepers" to the owner, or even determine if the owner, although there in an office, is actually the person with whom you need to be discussing this?

 

[Markthebroker]

How do you get past "gatekeepers" to the owner, or even determine if the owner, although there in an office, is actually the person with whom you need to be discussing this?

It was very different when I used to sell advertising, but now as an insurance agent pretty much all I would do is walk in introduce myself and hand them my business card. About 1 in 10 visits they were already unhappy with their agent, or in need of insurance, so I would just let the conversation naturally take it's course.

Questions to get to the decision maker are things like -Who do you use for your insurance? What carrier are you with? Are you happy with them? Are you the person in charge of that?

 

[rmhaire]

How do you get past "gatekeepers" to the owner, or even determine if the owner, although there in an office, is actually the person with whom you need to be discussing this?

In a small business, the owner is usually the gatekeeper. If not, then your first job is to get Large Marge on your side.

 

[scagnt83]

In a small business, the owner is usually the gatekeeper. If not, then your first job is to get Large Marge on your side.

Donuts and chocolate.

 

[scagnt83]

Interested in getting some feedback from anyone who's tried this. I'm planning on tapping into the Small Business Market next week, using Business Valuations as a steppingstone to get my foot in the door. These businesses will be cold called, offering a complimentary Valuation, and a Fact Finder will be completed during the initial meeting, to determine other potential needs. For the business or personally.

Has anybody had any success trying this?

I would stay away from being things you are not.

I deal with business exit and succession cases. The one thing I dont do is tell them what their business is worth. I can tell them standard multiples for various industries, factual data. But I cant legally or ethically do a comprehensive valuation of their business. You are treading in grey waters with that intro.

Besides that. As mentioned, most already have an idea of what size check could purchase their business from them.

Also, most dont care... unless they are close to retirement, or unless they have been made an offer by an outside firm.

Go in as the insurance agent. Lead with your expertise.

 

[Markthebroker]

In a small business, the owner is usually the gatekeeper. If not, then your first job is to get Large Marge on your side.

Usually when walking into a small business, getting ahold of the decision maker/owner is pretty easy. Very different than pounding the phones.

 

[DHK]

The problem with leading with a business valuation... is that you're not leading with the problems you can help people solve. The business valuation is the SECOND step to ascertaining and determining their problems... not the first step.

This is why being a "planner" really sucks: planners 'lead' with "planning"... in order to FIND problems or opportunities... then convince them how smart they are... and then try to solve them with your product... yet, not really determining if that problem is even a concern for that person.

Now, I have my approach... but let's get a bit more traditional for possible eligible businesses (not for canvassing; you'd need a targeted list):

"If I could show you how you could disinherit the IRS from the capital gains tax from the future sale of your business, guarantee the continuity of your business, and sell it for the tax-exempt equivalent of having grown the business by 19% each year for the next 5 years... would that be a conversation worth having?"

For anybody reading this, this is based on a contributory ESOP plan design by my friend and Top of the Table agent Kelly Smith, CLU, ChFC.

Here's the clip where Kelly and I talk about that equivalent value:

 

[DHK]

Most business owners have a general idea in their head what their business is worth.

Create one of these for business owners. I'm sure you know this, but what the business owner thinks their business is worth and what the IRS will agree to what it's worth... are two very different things: