Through the lens of an investor one of the biggest mistakes entrepreneurs/ business brokers make in the search for investors is this….
Somewhere in the listing description of the business the owner or broker highlights how the business has grown organically and current exceptional revenues have been achieved without any advertising, marketing or sales.
A simple keyword search on business brokerage sites ‘word of mouth’ literally brings up hundreds of businesses… describing customer/client acquisition process like this:
“Complete client base built on word of mouth”;
“To date growth has come strictly from word of mouth as there is no advertising or outside sales people“;
“Current owner has grown the business to a monthly revenue of $100K on average, while relying solely on word-of-mouth marketing."
“…growth comes from word of mouth“.
The business must be so successful they don’t need to advertise? That surely must be a great business to invest in…. right?
Not really…. here’s why… What's actually being said is that business does not have in place any predictable, repeatable, systematized, scalable sales and marketing process. Word of mouth, customer referral is important to any business but in terms of attracting investment and ramping up a company the business must have in place a predictable sales system.
If you know anyone who is seeking investment in their business- connect them with me @ jasoncooksey@iceacquisitions.com
Jason Cooksey
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