Advice needed on Sourcing: Multichannel Outreach & Getting fresh prospects once you've exhausted your list
March 09, 2024
by a searcher from McGill University in Montreal, QC, Canada
Hey Searchfunders -
Just wanted some advice and tap into the wisdom of the SF community.
My question is a 2 parter.....
The first is about Multichannel Outreach.
I know this term "multichannel" gets thrown around a lot. But can anyone talk through what channels have worked well for them (especially for older owners +45).
Just as an FYI.... I've used email outreach almost exclusively with 1% - 3% response rates. And now I'm exploring others.
Also, a followup to the first....
For prospects who've not opened emails even after multiple outreaches. Is there any channel / strategy that has worked well in driving engagement?
The second part is about the Prospect List...
If you're focusing on just 1 industry you'll eventually end up contacting nearly everyone on your list who fits your criteria. That's the predicament I'm currently in...
I've been using Data Axle (and of course Searchfunder) but every option for the next list (like Grata) comes with a pretty heafty price tag.
Does anyone have any ideas / suggestions for a solution that doesn't burn a hole in your budget.
from University of Southern California in Mid-Atlantic, USA
I am finishing this recent Acquiring Minds podcast.
https://open.spotify.com/episode/53Y4kCBlJW1kYHZUvN4RwD?si=aTgPQPstRtuNB4ypqr_Jxw
The gentlemen discussed doing a poorly executed email campaign to a wide variety of businesses and had - predictably - poor results. Then they turned up the effort and began a super-targeted snail mail campaign and had a massive number of leads willing to talk.
In my own experience, when I first began a proprietary search, it was snail mail as well. Out of 60 letters I had five $5mm+ businesses that I was doing diligence on - financials, taxes, visits, you name it. My source was DandB, picking an industry or broad industry grouping, using their very loose calculation of size/revenue, target state/city, and sending letters. I only address them to the owner's name, not the business. The letters are more likely to make it past a gatekeeper who doesn't want to risk opening the boss's personal correspondence.
Also, I'm not a big cold caller. I find it helpful to do something you know you can replicate. If you don't cold call, you won't cold call. I found the letters had owners reaching out to me just fine, as well as the CPA of one of the owners. He gave me more personal info on the owner right up front than I expected.
Good luck!
from New York University in Menlo Park, CA, USA
Put yourself in the shoes of a busy business owner. Picture getting 10 to 50 cold emails every week. Most days, you're just focused on running your business smoothly. Selling it isn't even on your radar, even if you're over 60. You've got a lot on your plate – managing your team, keeping customers happy, and trying to grow your business.
Now, let's say you're having a rough day or something triggers you to think about retirement. That might be the day you actually read one of those emails about selling your business. But if the email seems generic and doesn't explain why your business specifically, chances are you'll just hit delete. You're busy, and you don't have time for vague messages from people who don't seem to know your industry.
But if you've heard of the person or company reaching out or if they mention something specific about your business, you might give them a chance. You might hop on a quick call if they show they know what they're talking about and seem like someone you'd trust to buy your business. However, keep in mind that sharing financial info might mean a fee from your accountant to generate the statements. As a buyer, you are asking for the seller's time and potentially generating an expense with your request.
When I help buyers find businesses to buy, I stick to industries I know well. I only work with serious buyers who can prove they have the funding and industry knowledge to be qualified. I'm not just a one-time buyer—I build relationships with business owners over time. I can bring them multiple qualified buyers until they find a deal that works. I have little incentive to ghost sellers when a shiny new deal comes along.