By Peter Janis
From the Floor
Where Do You Go from Here ?
Prepping Your Business to Sell
Part 1
There are big signs in the front window : “ 50 % off !” This jeweler has been in Maple Ridge , BC for years and the owner has decided to sell and retire . He produces amazing custom jewelry , does very high-quality repairs and carries a nice cross-section of inventory . His location is right across the street from Walmart at the city ’ s busiest intersection . This should be a great opportunity for a strategic buyer . Yet , it has gone unsold . The business is listed for sale with a real-estate agent and for the past several months , nothing has happened – not a bite . Get this : the listing has the wrong address , the jeweler ’ s website does not show any photos of his custom work , let alone a listing or photos of the inventory on-hand . When I asked him about his plan to retire , he said he may simply shut his doors in the new year . Such a shame .
Most of us get into this business because we have a deep-seeded love of music . When I was about 12 years old , my parents drove us from Montreal to Mexico for a vacation . Just imagine , a Pontiac Star Chief dragging a tent trailer with four rambunctious kids nestled in the back seat . Brave . One day , while in Acapulco , we happened to park in front a music store . I went in for a look and was immediately mesmerized by the vast array of instruments , many of which I had never seen before . Right then and there I was hooked .
Most music retailers start out as musicians and we learn our craft by the seat of our pants , mixed with whatever street smarts we have mustered along the way . We spend years dedicating ourselves to long hours of hard work and generate a modest income from teaching , instrument repairs , and selling instruments and accessories . We get so busy with day-to-day tasks that we rarely take the time to seriously evaluate where we are today and where we plan to be tomorrow . Ultimately , the company will either change hands or merely close . As an incurable optimist , I cannot imagine not taking full advantage of the years of hard work and the goodwill a company has gathered to not at least try to get the most out of it when it ’ s time to retire .
I often get asked : At what stage do you begin the retirement process ? The short answer is now . Why now ? Because building value in a business comes from many factors and it often takes years to get all of the game pieces to align just right . Everyone knows that when you sell your home , the first thing you do is unclutter the place , clean up the lawn and garden , and then add a coat of fresh paint to brighten up the place . You are highlighting the assets . Selling a business is no different . It begins by identifying your strengths and propping up your weaknesses . This takes time .
Let ’ s start with staff . Can you leave your business for a month and know that it will be taken care of ? In my case , I hired a fellow named Mike Hill as general manager . He ran the show , making sure orders were delivered , bills were collected and paid , and staff was happy . It takes years to put together a solid team . These are the folks that will make you money and drive hard when the chips are down . Good people are your biggest asset .
Let ’ s go back to the jeweler . His strengths include amazing custom work and high-quality ethical repairs . Yet , his web site did not show any of his work . Why would he not be yelling out to the world that this is the best place in town to have your jewelry cleaned , evaluated , sold on consignment , or transformed ? Would it not be smart if he hired an enthusiastic young jeweler and taught her the tools of the trade ? Then , when selling , the company would be able to provide an ongoing service with years of experience . Would he not be smart to have someone update his website so that a would-be buyer sees potential ? Many people take their jewelry very seriously and if they are happy , they will brag about the work and recommend the shop . This is what goodwill is made of .
Now … ask yourself , what makes your business different or better ? What is your
“ value proposition ”? Do you have a stable of great teachers with programs that set you apart ? Are you able to offer top-quality repair service for the growing legions of used instruments that are out there in the aether ? Have you got a consignment program in place that includes setups and a checklist ? Are you offering an instrument rental program with a rent-to-own option ? Are you effectively telling your story ? Have you created a customer list with regular email blasts telling everyone about a vintage guitar or mid-century snare drum that has just been uncovered ?
A successful business begins with a positive mindset . It is a valuable asset . Treat it so . Make sure you shine it up real nice so that it stands out and then make sure all of the T ’ s are crossed and I ’ s are dotted . Selling a classic Harley that starts with a single kick is a lot easier than one that simply will not go .
Formerly the president and CEO of Radial Engineering Ltd ., Peter Janis has been in the Canadian music industry for over 40 years , working in retail , distribution , and manufacturing . Peter now offers consulting services with his firm Exit-Plan , where he assists business owners in increasing their sales and enhancing the attractiveness of their business in preparation for retirement . For more information , visit www . exit-plan . ca .
This column is the property of Peter Janis and authorised to be published and republished by NWC .
CANADIAN MUSIC TRADE 9