In this episode of After Hours Ecommerce, Sean Clancy and Sean Fisher discuss the essential preparations for the upcoming peak season, particularly focusing on Black Friday. They emphasise the importance of crafting the right offers, optimising advertising strategies, and enhancing customer service to ensure a successful sales period. The conversation also covers the significance of email marketing, reducing friction in the customer journey, and planning for the holiday season beyond Black Friday. The hosts provide actionable insights and strategies for e-commerce brands to maximize their performance during this critical time.

In this episode, Sean and Sean discuss the critical steps to take after acquiring a business, focusing on the first 90 days. They emphasise the importance of understanding team dynamics, securing necessary access to business assets, and establishing a solid foundation for growth. The conversation covers building relationships with staff, addressing legacy technology challenges, and operational considerations for new owners. The hosts provide practical advice for navigating change and ensuring long-term success in business operations.

In this episode, Sean Fisher and Sean C discuss the concept of operational investing, focusing on the considerations and strategies for acquiring and transforming businesses. They explore the importance of understanding one's capabilities, evaluating business opportunities, managing inventory, and the significance of change management in acquisitions. The conversation emphasises the need for thorough due diligence and the identification of complementary products to enhance business value.takeaways

• Operational investing involves acquiring and transforming businesses.
• Understanding your own capabilities is crucial before investing.
• Evaluate businesses based on your strengths and weaknesses.
• Consider the demand and sustainability of the business model.
• Identify opportunities for growth and efficiency in operations.
• Inventory management is key to maintaining business health.
• Look for complementary products to enhance market reach.
• Change management is vital to avoid disrupting revenue.
• Due diligence should cover all aspects of the business.
• A checklist can help streamline the acquisition process.

Checklist:

Define your strategic goal - are you acquiring to build and hold or to scale and flip? Develop your strategic plan accordingly

Define your target acquisition

• What revenue band is “good” for you?

• How much do you have to spend/how can you finance the investment?

• Target vertical based on your knowledge or experience base - what do you know well enough to do it well?

• What problems do you “want” the business to have that you are capable of solving to unlock value?

  
  

Understand the business dependencies for success

• Key personnel risk - develop a plan to mitigate this - cross training/documenting procedures etc

• Platform risk

• Supply chain risk

• IP/exclusivity

  
  

Pre-define your “transformation”

• What do I need to change to create the value I think I can?

• How much will it cost? Technology, time, content creation, product creation and R&D, staff training.

• What skills/support will I need?

• How long will it take?

• Cost It | Timeline It | Double it

• Is it still “worth it?”

  
  

Get the expertise you need

• Leverage the expertise you need during and before the acquisition, DD and transformation - amateur mistakes are expensive ones

• Leverage an M&A team or review financials with your accountant at the very least

• If non technical, bring in the right expertise for ecommerce, marketing, warehouse operations, finance, HR Law.

  
  

Dot your i’s, cross your t’s

• When does your lease expire?

• If wholesaling, review your supplier agreements

• Check your supplier contracts

• Check your staff contracts

• Check your exclusive licences

• Review your patent expiry dates

• Review any debt structures