We are selling TalentBee.
Sorry it was a bit clickbait, but it's true.
We are selling TalentBee.
However, not right now, but someday.
It is something we have been planning already before we launched the company.
It affects on how we operate on things, and in this blog post, I will go through the key things it's affecting.
In order to sell, you also need other value to the buyer than your people.
This means that while we are building TalentBee, we are thing about the different values that we can provide to potential buyers in addition to our employees. These things include:
1) Our technologies, automation & processes
2) Our brand & value of that
3) Our marketing-led growth = It's easier and more efficient for us to get new customers than for agencies focusing on cold calling.
4) Talent Pipelines & data
The company can't be dependent on the founders.
It's hard to sell a business if the founders are the ones running the business. Of course, in this stage, we are still doing it, but one of my main goals is to think about how I can make myself useless for the business.
I've heard many stories about entrepreneurs who can't stop working because the business would die.
I think the first real test comes to this in the summer when all of us are having long summer holidays.
This means, e.g., that:
1) Can we sell our services without me running the sales meetings?
2) Can we get new leads without the founders posting on social media?
3) Are we able to provide value for customers if Saara is not running the recruitments?
And much more.
To succeed in this, we need clear processes for everything.
Focusing on MRR because of the valuation of the business
We are focusing on monthly recurring revenue for multiple reasons, but selling the company is one of them.
It's easier to sell a company with ongoing customers than if it's a project business.
If you have the same amount of turnover, you will get a way better valuation.
Building relationships with potential buyers
I don't have any idea who will buy us, but I've already started building those relationships for a few reasons:
1) To ensure we have those ready for the moment we are selling.
2) To learn what buyers are expecting from the companies they are buying.
Most likely, a company like TalentBee will be bought out either by:
1) Another agency
2) Commercial owner
When we are about to sell?
I don't know.
The first goal is to build a business that is not dependent on the founders.
When we get to that point, we can start to think about this more.
We would, of course, have the option of staying as owners and hopping off from the operational roles as the founders.
Our most important goal is to create the best possible workplace for talent acquisition professionals, and that's a goal that I want the future owner of TalentBee to agree with.
If I should give my best, guess it will be in 4-5 years.
The money from the company needs to be life-changing, which means seven figures for each of the founders (+ some nice extra cash for our employees who will become owners of TalentBee).
Am I stupid for thinking about the exit from the beginning?
I think not.
I think that every founder should think about the exit plan from the beginning.