@JonathanRoberts co-founded @OneRabbit with 2 partners 10 years ago. He'd worked with those same partners for 17 years prior in a marketing and design business, which ultimately morphed into One Rabbit.
Along the way he's founded, owned and exited multiple other businesses. In this episode and based on that deep experience as an entrepreneur Jonathan shares high value insights on the challenges and rewards of making a strategic exit. Specifically he talks about;
- how 3 partners exited their marketing firm with friendship Intact
- the importance of recognizing when passion and energy wane
- how assessing one's satisfaction and enthusiasm regularly can be pivotal in determining the right time for a change
- the significance of exit planning, building systems into the business, diversifying income streams, and maximizing profits
- his unconventional approach to exit planning
- his success in transitioning to new ventures
- the value of finding new passion and purpose beyond the business
A must-listen for potential business sellers and entrepreneurs seeking to exit on their terms and with confidence.
"Enjoy it, stay there while you enjoy it, make it as profitable as you can. And then when you stop enjoying it, pull the trigger, move on." - Jonathan Roberts
RESOURCES:
- Visit www.zerowasteproject.com.au to explore the Zero Waste Project and learn more about their products and initiatives
- Search for www.fridgefriend.com.au to find the domestic product offered by Zero Waste Project and discover how it can help reduce food waste at home
- Connect with Jonathan Roberts on LinkedIn for further insights and updates on his entrepreneurial journey and business ventures.
Timestamped summary of this episode:
00:00:06 - Introduction and Purpose of the Podcast
Michael Kerr introduces the Small Business Banter podcast and discusses its focus on business owners at different stages of ownership, such as selling, being approached by potential buyers, or aspiring to buy a new business.
00:01:13 - Guest Introduction and Business Background
Jonathan Roberts shares his extensive background in sales and marketing, including founding and growing One Rabbit, a professional services marketing firm. The discussion touches on the unique approach taken by One Rabbit and its transition into a consulting firm.
00:05:42 - The Transition to One Rabbit and Business Philosophy
Jonathan explains the transformation of One Rabbit, emphasizing the decision to focus solely on professional service firms. The discussion also delves into the philosophy behind the name "One Rabbit" and the shift towards a no BS approach in marketing.
00:09:27 - Knowing When to Wind Up a Business
Jonathan discusses the natural progression towards winding up One Rabbit after 27 years, citing a loss of enthusiasm and a desire to pursue other business interests. The impact of COVID-19 and the exploration of potential alternatives, including selling the business, are also mentioned.
00:16:55 - Navigating Business Partnerships and Personal Reflection
The conversation touches on the dynamics of business partnerships, personal attachment to a business, and the gratitude for accomplishments over 27 years. Jonathan shares insights on communication within partnerships and the departure of co-founders.
00:17:23 - The Importance of Conscious Business Decision-making
Jonathan discusses the importance of conscious decision-making when it comes to exiting, not exiting, or selling a business. He emphasizes the need to have a plan and be aware of the options available.
00:19:27 - The Trade-off in Exiting a Business
Jonathan shares his experience of stepping away from his business after 27 years. He discusses the factors that led to the decision, including being passionate about other business opportunities and feeling less motivated in the current one.
00:25:32 - Renewed Purpose in New Ventures
Jonathan talks about his new business ventures related to reducing food waste and the positive impact it has. He highlights the renewed vigor and purpose he feels in his current endeavors, compared to his previous consulting business.
00:28:51 - The Entrepreneurial Spirit and Continuous Growth
Jonathan discusses his entrepreneurial spirit and the excitement of building new businesses. He emphasizes the importance of continuously investing time and energy into new ventures and the satisfaction it brings.
00:31:23 - Maximizing Earnings and Exit Planning
Jonathan advises business owners to maximize their earnings while in the business and invest in exit planning. He acknowledges the challenges of selling a business and the need for conscious decision-making throughout the process.
00:34:27 - Building Business Systems
Jonathan reflects on the need for more business systems in their knowledge-based business to diversify income streams and maximize profits. He emphasizes the importance of smart marketing and working with enjoyable clients.
00:37:18 - Becoming an Expert
Jonathan discusses the bravery required to say no to clients and the importance of becoming an expert in a specific niche to command higher fees and provide better service.
00:38:05 - Exit and Succession Planning
Jonathan shares his perspective on exit planning, emphasizing the importance of enjoying the business, making it profitable, and recognizing the right timing to move on.
00:39:40 - Finding Jonathan
Jonathan provides information about his website and encourages listeners to connect with him for further discussions or inquiries about his business.
00:40:46 - Wrapping Up
The host, Michael Kerr, concludes the episode, encourages listeners to subscribe, and offers personal assistance through the website. He also announces the release of new episodes every couple of weeks.
Thanks for listening. Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.
Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.
Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.
michael.kerr@kerrcapital.com.au
www.ownertoownerpodcast.com.au
[00:00:00] Welcome to the Small Business Banta Podcast. I'm Michael Kerr, I'm your host and I'm also
[00:00:11] the founder of Kerr Capital where I work day to day with business owners. The Small Business
[00:00:17] Banta Podcast is built for business owners and their trusted advisors at what I see
[00:00:22] is three different key stages of ownership in a sec, but thank you for making time. Thanks for having me on, Michael. Jonathan is an entrepreneur. His business interests are pretty extensive, but the reason we connected yeah, great track record, there's an entrepreneur. Johnson, do you wanna just give us a couple of minutes on that background before we rip into a conversation on the merits or otherwise of exit planning? Sure, Michael, I guess you could sum up my background
[00:03:00] is I've always been in sales or marketing
[00:03:03] in one form or another.
[00:03:05] One of my first jobs was working for Target We sold that business in 2000. We reacquired it 12 months later. Business story. Fred's brother Jim joined us before that, before we sold, and got us out of the put, which was good, because he's got a financial background. So we grew the business after to be reacquired it.
[00:04:20] We cleaned it up, continued it for another 10 or so years.
[00:04:25] And then we were sitting around after a couple of bottles Yeah, and practitioners and that was that was a fun journey and then COVID happened and then you know, we decided earlier this year that we'd had enough That's it in a real shorts. Yeah. Yeah, that's kind of you but the the story behind the one rabbit brand was Like do you want to just cover that because that was pretty cool. Yeah sure sure. I mean
[00:05:45] We couldn't differ and show it ourselves when we went jump off a cliff. And it got worse before it got better, but when it got better, it was much better. And that was from that focusing, because was there a parable or a story about one like chasing all over the joints? And then just if you got, if you're hungry, you just go, you pick one. That's what I remember from.
[00:07:01] In one of our sessions, Fred, one of the partners
[00:07:05] in the business said, look,, words and same stock images. So you really did push a few. A lot of that, a lot of that, I guess, angst was coming from Jim. I mean, Jim was a management accountant and before he joined us and Jim is Fred's brother
[00:08:25] and he said, look, but I guess for us, it took a few years, and then we could shorten
[00:09:43] that period for our customers to say, well just working in Australia we worked in the UK, you know,
[00:11:00] we're out of the word virtually in on this day. It just, it, I don't want to say with it, but in some way, maybe it did. Maybe it just, it, we lost the passion and lost the energy and lost the drive to keep, you know, keep pushing. We did a couple of conversations. Yes, like it was. And that's very much the message that came through that was, there was this synchronous
[00:12:23] realization that we can all do different things. And We did think about, you know, we've got some really interesting IP within the business. Is there any value in that? And I shopped it around a little bit. But at the end of the day, we didn't get any buyers, obviously.
[00:13:43] And we thought, look, it's probably just going to be easier just to wind the thing down.
[00:13:46] So there was a time.
[00:13:47] Yeah. managed by someone else. And we thought, look, maybe it's better just to wind the business up or close the business down as we did on a high. Once a fantastic customers, the business was debt free. We've had a good ride.
[00:15:01] It's been, as every entrepreneur knows,
[00:15:04] it's been a bumpy ride.
[00:15:05] We've had, you know, 27 years. So I look at that in the world. It's a big part of you. Massive part of you. It's a huge part. You know, kids, you know, one more kid's getting right to it. But you know, a lot happens in 27 years when you run a business for that long and you look back at it and go, wow, that was, there's a lot of gratitude and a lot of, you know,
[00:16:25] you forget about the things that you and then you know Jim and I decided to you know let's let's of what your business is worth today, what your options are to make it more sellable, then head on over to the Kerr Capital website and check out the Value and Sellability Diagnostic.
[00:19:01] Now let's head back to the podcast.
[00:19:06] Can I just flip that around? was it that you will now got these other things ready to go? So the trade-off was too high to keep going? Good question. No, there's no, it wasn't a trade-off. It was the fact that I was more passionate and more interested in the other business opportunities.
[00:20:21] And I felt after 27 years
[00:20:22] that that journey hadn't run its race.
[00:21:24] takes. You've got to shut down Bank of Cancer and they registered the company and we're going through that now. We only shut the Bank of Cancer down last month, so it's pretty
[00:21:29] fresh. We haven't really turned off the advertising campaign six or eight months ago because we
[00:21:40] were doing a lot of marketing through LinkedIn. We 20, 30, 40 years, it defines personalities. And he was more than happy to. I mean, he, because he read, he was a facilitator of the workshops we did. And it was pretty intense. So it was, he would have to get himself up to those, towards the end. And it was getting harder and harder. And we said, look, you know, if we're not enjoying this,
[00:24:22] let's walk away.
[00:24:25] You know?
[00:24:26] Yeah. Whereas the good we're doing with four is totally different. We're actually doing some good now, which feels pretty good. It's nice. No, it's a renewed vigor purpose for what you're doing. So tell us about zero waste. Because as you said, it's pretty raw.
[00:25:42] You've only closed the bank accounts,
[00:25:43] but it's also you're moving on quite rapidly
[00:25:47] by the sounds, which is great.
[00:25:48] What do you do there? I thought, how do I grow this business outside of Toulon? And that's where the idea for the fridge friend, the smaller version of the cool room filters came from. So we took that, the big filter and redesigned it into the small filter that we could sell online and people could put in their fridge at home. So we launched that in January.
[00:27:03] We started shipping in March
[00:27:04] and I've
[00:28:23] already got a product. They're now helping me redesign the product and do some pretty and to be able to let go is more than, it needs more than just, it needs something else on the other side. That's what, you know, that's what I kept telling. I think so. And I think one of the things that has helped me is that, you know, I was, I was a one of three and that probably profitable under management. The question back is, if you were the owner, why would you sell it anyway? Yeah. So isn't there a tsunami of businesses coming on the market due to people of air age? I've been hearing that for a while now and I'm not necessarily seeing it.
[00:31:03] Look, there's great businesses out A lot of owners don't do a lot about selling. For one reason or the other, they're happy or they bump along and some of them will advertise.
[00:32:21] What you see advertised is only there's a lot of personal services and retail business. They're And we'd known each other a little while, and I was really keen to get from someone, particularly as it's so fresh, just to give their reflections on the experience they had of gently winding down something rather than trying over years and years to manufacture a sale,
[00:33:41] or you did it with kind of partnership with your partners.
[00:33:46] It's kind of're a knowledge business. So there's only so much you can do with knowledge. I mean, we had plans at one stage to do online learning where, you know, you could sign up for a course and all those sorts of things, which most knowledge firms try and do and look at, you know, I'd be looking at other ways. How do you, how do you spread the income across different areas so that you're not the knowledge space and people are buying your time and your expertise, when you want to try and find people that you enjoy working with and having the guts, I guess, the same data someone, if you don't feel that the right fit. But it takes... Right. Yeah. And sometimes saying no more often makes your business better,
[00:36:25] as if I was saying yes all the time and think generalists, people are looking for the brain surgeon, not the GP. So become the brain surgeon, and you'll pay a brain surgeon a lot more. You'll also put up with shitty service. You'll wait
[00:37:42] two months to see a brain surgeon, but you wait and did something about it. So that's an exoplanet. That's okay. And so, you know, again, to reinforce if you're, you know, if you are an owner, it doesn't have to be the full package the website and if you hit the website, you'll start getting followed by all my ads that I do on social media. Because we do a lot of social media ads and we're shaking floppy carrots around and all
[00:40:20] sorts of stuff.
[00:40:21] So anyway, it's all a bit of fun.
[00:40:23] So yeah, zerowaysproject.com.au or look me up at Google.
[00:40:27] Not Google.
[00:40:28] I'm now LinkedIn.