If You Put Your Advertising Agency Up For Sale… Would You Buy It?
I just finished listening to Kara Swisher interview Khosla Ventures’ partner Keith Rabois – On The Future Of Innovation In Silicon Valley on Recode Decode.
Wowzer… is this guy smart and opinionated. Please listen to this interview. I also follow him on Twitter – @rabois.
This is his investment criteria. If you applied it to the sale of your agency, would you buy you?
What is anomalous? (As in, deviating from what is standard, normal, or expected.).
What “secret” is the company predicated on? What could this be?
Could this be one of the most important companies on the planet?
What is the accumulating advantage?
Can the founder attract the talent requisite to achieve the vision?
Why do we have a comparative advantage?
These are really tough questions. Especially if you think that advertising, PR and design agencies can’t generate meaningful differentiation. But, they can.
Are you working on that?
Will you ever sell your advertising agency?
I sold mine. It took a very strategic effort to build value a year plus ahead of that sale. If you want to sell your agency, even a couple of years from now, you need to build it for a sale.
Ask the big question… “Would you buy your agency?” If the answer is no. Well, its time to rethink your offer.
I have written more about selling an agency: Will you ever sell your advertising agency?