Many businesses across the country have experienced significant challenges over the last 18 months. Entrepreneur Corey Shader knows all too well the hurdles and barriers business owners have faced as they struggled to remain above water during the COVID-19 pandemic.
For some, the early stages of the pandemic in the spring of 2020 were devastating. For others, it significantly hurt but didn’t drown their business.
One constant across the board is that businesses in every industry were affected in some way.
When the calendar flipped to 2021, there was lots of hope and optimism. The FDA and CDC gave COVID-19 vaccinations emergency use authorization, and infection rates, hospitalization, and deaths began to plummet.
Things have changed in the last few months, with the Delta variant of COVID-19 throwing a potential wrench in some plans for a full recovery. In addition, with the colder months on the horizon, many are worried about a challenging fourth quarter ahead.
It begs the question of whether entrepreneurs should consider selling their business or investing more into it in 2021.
Corey Shader explains that what is right for one business may not be suitable for another. One thing all business owners should do is consider the potential challenges of selling a company now.
Valuations of businesses may be higher today than in the past, as projected yearly cash flow may be higher due to the pandemic. At the same time, this could pose a problem, as a down year in 2020 — and in part of 2021 — could have significantly reduced cash flow on an annual basis.
These factors will help determine the ultimate sales price of the business. It’s unlikely that many companies were able to manage the crisis of the COVID-19 pandemic while at the same time planning for what’s ahead.
In other words, one would be hard-pressed to find a business that genuinely stood out among all other competition — and if a company were found to be, it would undoubtedly be expensive to purchase.
Business owners who experienced a drop in revenue due to the pandemic but were able to remain above water may want to consider investing in their company in 2021 and reconsider selling at a later date.
This investment would allow the entrepreneur to re-establish the business and adjust the approach, business model, and/or product line to reflect the near-term future.
Astute entrepreneurs who have already identified prime post-pandemic opportunities will find now an excellent time to make these investments. By working hard to expand now and investing what they can into the business, these entrepreneurs could be positioning their company for a sky-high valuation — and eventual sales price — in a year or two when the economy settles.
Ultimately, Corey Shader says entrepreneurs shouldn’t settle for a lower sales price to get out of the game unless they need to do so for financial reasons or see a brighter opportunity in a different sector ahead.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span the nation, consulting for start-ups and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.
Story by Jessica Brown
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