Why You Should Focus on Being a "Toyota," Not a "Ferrari"

Welcome back to the Mid Market Insider!

Today, we’re diving into why you should focus on being a “Toyota” in business… instead of a “Ferrari.”

When selling your company, try to be more like a Toyota.

Not a Ferrari.

You might see your company as the more luxurious brand:

• Unique

• Full of potential

• High-performance

But buyers might not be looking for that.

Buyers care about reliability:

A business that’s dependable and predictable. That’s what makes a business more valuable in the long run than one that’s flashy but high-maintenance.

From a buyer’s perspective, a Ferrari comes with high maintenance costs, unpredictable breakdowns, and constant attention.

They’re not just thinking about how cool it looks or how fast it goes.

They’re thinking about how often it will be in the shop, how expensive it will be to fix, and how much downtime they’ll have to deal with.

That risk and uncertainty can be a dealbreaker for many buyers.

Buyers often prefer a Toyota:

Steady, reliable, and able to deliver consistent results without drama.

A Toyota isn’t flashy, but you know it’ll start every morning and get you where you need to go. For the next 20+ years, if need be.

For a buyer, stable cash flow and operational simplicity are much more appealing than a business with wild swings or unproven growth.

It’s about minimizing surprises and maximizing peace of mind after closing.

If you want to attract more buyers and higher offers, focus on making your business dependable and easy to operate, not just flashy or full of unrealized growth.

Think about how your business performs on an average day, not just its best day.

Buyers want to know they can step in and keep things running smoothly without a parade of headaches.

The more confidence you can give them in day-to-day operations, the more attractive your business becomes.

At the end of the day, stable cash flow and operational simplicity are far more valuable to most buyers than a “sexy” business with hidden headaches.

You don’t have to downplay your business’s strengths, but you do want to highlight its reliability.

Show buyers that what you’ve built is sustainable, not just exciting.

That’s what gets deals done and keeps everyone happy long after closing.

That’s all for today’s newsletter! Thanks for reading!

📅 Next Week:

In next week’s edition, I’ll be sharing the importance of Working Capital and why it can make or break your exit. Stay tuned!

Keep building,
Nick

P.S. 

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