Chapter 11 Describing Your Business Model
How does your business make money? This should be the easiest question you’ll be asked when selling your business and you need to be prepared with a solid answer. The answer you give should be the description of your business model. The description of your business model should cause a potential buyer to have a real “Aha!” moment. And that’s when you will know they understand the transferrable value of your business.
“What a great idea! Someone really thought this through.”
Unfortunately, the response given by many owners doesn’t sound like it has been thought out very well at all. The owner hesitates in their response, or makes a statement in a manner that sounds weak, or even worse, risks sounding flippant ...