Tag Archives: Evaluating an Opportunity

Venture Capital Criteria

Most venture capital firms concentrate primarily on the competence and character of the proposing firm’s management. They feel that even mediocre products can be successfully manufactured, promoted, and distributed by an experienced, energetic management group. They know that even excellent products can be ruined by poor management.

Next in importance to the excellence of the proposing firm’s management group, most venture capital firms seek a distinctive element in the strategy or product/market/process combination of the firm. This distinctive element may be a new feature of the product or process or a particular skill or technical competence of the management. But it must exist. It must provide a competitive advantage.

After the exhaustive investigation and analysis, if the venture capital firm decides to invest in a company, they will prepare an equity financing proposal. This details the amount of money to be provided, the percentage of common stock to be surrendered in exchange for these funds, the interim financing method to be used, and the protective covenants to be included.

The final financing agreement will be negotiated and generally represents a compromise between the management of the company and the partners or senior executives of the venture capital firm. The important elements of this compromise are ownership and control.

Ownership

Venture capital financing is not inexpensive for the owners of a small business. The venture firm receives a portion of the business’s equity in exchange for their investment.

This percentage of equity varies, of course, and depends upon the amount of money provided, the success and worth of the business, and the anticipated investment return. It can range from perhaps 10% in the case of an established, profitable company to as much as 80% or 90% for beginning or financially troubled firms. Most venture firms, at least initially, don’t want a position of more than 30% to 40% because they want the owner to have the incentive to keep building the business.

Most venture firms determine the ratio of funds provided to equity requested by a comparison of the present financial worth of the contributions made by each of the parties to the agreement. The present value of the contribution by the owner of a starting or financially troubled company is obviously rated low. Often it is estimated as just the existing value of his or her idea and the competitive costs of the owner’s time. The contribution by the owners of a thriving business is valued much higher. Generally, it is capitalized at a multiple of the current earnings and/or net worth.

Financial valuation is not an exact science. The compromise on owner contribution’s worth in the equity financing agreement is likely to be lower than the owner thinks it should be and higher than the partners of the capital firm think it might be. Ideally, the two parties to the agreement are able to do together what neither could do separately:

1. grow the company faster with the additional funds to more than overcome the owner’s loss of equity, and

2. grow the investment at a sufficient rate to compensate the venture capitalists for assuming the risk.

An equity financing agreement with an outcome in five to seven years which pleases both parties is ideal. Since the parties can’t see this outcome in the present, neither will be perfectly satisfied with the compromise reached. The business owner should carefully consider the impact of the ratio of funds invested to the ownership given up, not only for the present, but for the years to come.

Control

The partners of a venture firm generally have little interest in assuming control of the business. They have neither the technical expertise nor the managerial personnel to run a number of small companies in diverse industries. They much prefer to leave operating control to the existing management.

The venture capital firm does, however, want to participate in any strategic decisions that might change the basic product/market character of the company and in any major investment decisions that might divert or deplete the financial resources of the company.

Venture capital firms also want to be able to assume control and attempt to rescue their investments, if severe financial, operating, or marketing problems develop. Thus, they will usually include protective covenants in their equity financing agreements to permit them to take control and appoint new officers if financial performance is very poor.

John B. Vinturella, Ph.D has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

The Strategic Plan

Small businesses are not scale models of big businesses; they are characterized by resource poverty and dependence on a fairly localized market. Their greater vulnerability to the consequences of a lack of focus stresses the importance of their strategic plan.

The strategic plan defines the company’s “competitive edge,” that collection of factors that sets the business apart from its competitors and promotes its chances for success. It requires a clear evaluation of the competitive business climate and an intimate knowledge of the market for the entrepreneur’s product.

The foundation for the strategic plan is a clear mission statement for the venture. Addressing the following questions can assist in developing this statement:

What business am I in? The answer to this question is not as simple as it seems. A good example of an industry group that failed to take a broader view is the railroads. If they had viewed their business as transportation rather than trains-and-tracks, then the airlines would be named Union Pacific and Illinois Central.

Who is our product intended to satisfy? What customer needs are being satisfied? How are these needs being satisfied, that is, by which of our methods or products?

An important strategic option is in how we price our product (as a price leader, value leader, or prestige product). Other options include the way in which we differentiate ourselves from the competition and the particular “niche,” or subset of the market, we seek to serve.

Once we have set internal objectives, we must examine the external and competitive environments in which we will be trying to achieve them.

The external environment consists of those factors that are largely outside our control, but affect the market for our product. Examples of these factors include general economic conditions, regulations, technological developments, and consumer demographics and attitudes. This environment is very dynamic, but some attempt must be made at projecting its changes.

Analysis of the competitive environment must begin with consideration of whether there are any barriers to the entry of a new competitor into the market. How strong is consumer loyalty to existing brands? How important are economies of scale; can a small independent firm compete? Are capital requirements prohibitive? Is there some proprietary technology that puts prospective entrants in a serious competitive disadvantage? Is access to raw materials or to distribution channels limited in some way? Are new entrants limited by permit restrictions or regulations?

The competitive structure of the industry is another important consideration. Are there a few dominant firms, or is the industry fairly fragmented? Will current competitors attempt to “punish” new entrants, such as through a price war, heavy advertising, or exercising their clout with key suppliers? Is there some geographic niche we can serve? What factors create cost advantages or disadvantages? How important is a firm’s position on the learning and experience curves? How are prices set? Is demand rising, even, or falling? Are there exit barriers that raise the risk of entry?

Relative strengths of our strategic partners must also be considered. What is the bargaining power of suppliers? How wide is our choice of suppliers? Is it costly for us to switch? Can our suppliers compete with us for the same customers? How important is our industry to our suppliers?

Do buyers have a wide choice of vendors? Can they make our product themselves? Are there less expensive or superior substitutes to our product in some segments of the market?

These are certainly not easy questions to answer, but performing the research to make better informed decisions, and addressing these questions “head-on” can improve our chances of success.

John B. Vinturella, Ph.D has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

Buying an Existing Business

One alternative to starting a business “from scratch” is to buy an existing business. To some extent, buying a business is less risky because its operating history provides meaningful data on its chances of success under our concept. We must, however, balance the acquisition cost against what the cost of a startup might have been.

Small-business sales are generally (on the order of 94%) sales of assets, with no assumption of liabilities; only about 6% are sales of company stock. Often the seller finances part of the purchase; typically the buyer makes a down payment on the order of one-third of the sales price, with repayment terms of five years at market rates. Do you see any danger for the seller in financing the sale?

If the decision is made that purchase of an existing business could improve our chances for success, we must then evaluate existing businesses to determine whether any are available at a price that is economically more favorable than a new venture. The most difficult issue in small business sales is establishing a selling price. It is an inexact science, characterized by a seller’s too-high expectations, and an overly skeptical prospective buyer.

Due diligence must be performed before a binding offer is made. Is the company’s history and network of business relationships clear? Are their financial statements representative? What do they say about the business? Are there any unstated dangers or risks? Are there any hidden liabilities? Often, a review of the financials by our banker and accountant can be valuable.

Intangible factors must also be considered, such as the seller’s reasons for offering the business for sale. Often these are for personal and career reasons, such as a readiness to retire with the absence of a successor, or another opportunity perceived as a better fit. Business reasons might include personnel problems, or a weak competitive position. Where business reasons predominate, we must decide whether all that is missing is a quality of management that we can provide, or whether there are some changes that we can make in the way the business is operated that will make the difference.

How “good” an organization is it? How do its customers and suppliers perceive it? If we do not buy it, how tough a competitor will it be? What will be the effect of an ownership change on the customer base, supplier relations, etc.? How much customer loyalty is to the business, and how much to the current owner?

Does the company have a “niche?” Is it the one in which you want to operate? Is there a competitive advantage to the operation that is sustainable? Are its assets useful to you? Will key personnel remain with the business?

Once we have gathered the necessary information, we may decide to extend a purchase offer. We should decide on a bargaining range before we go into any negotiating session. If we cannot meet on price, perhaps concessions on payment terms could make up the difference. We should know the tax and legal consequences of our options. If the discussion takes us outside our range, we should schedule another session, and reanalyze the data. We must allow for the possibility that the deal cannot be made.

Ultimately we must decide whether the purchase, at a price that the seller will accept, gives us a better chance of success than starting from scratch in competition with the business. Perhaps the seller’s errors would start us in a deficit position; we might prefer creating our own corporate culture and customer relationships; maybe we can find a better location, facility, newer equipment, etc. On the other hand, the cost of taking sufficient business away from existing firms could be ruinous.

It must be emphasized that there is no one correct value for a business. Any valuation is based on assumptions, and projections of future performance. Discomfort about basing financial decisions on assumptions and projections is natural. Entrepreneurship requires exploring uncharted territory, and operating in an environment of uncertainty. Success depends on applying our best judgment to reducing that uncertainty.

John B. Vinturella, Ph.D has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

Evaluating Business Planning Software

Abstract: Once a business idea is selected, it is highly recommended that we sharpen the concept by a detailed planning process. While this may seem a daunting task to first-time entrepreneurs, many “veterans” have found that there are software packages that can help to organize and format the material required for a comprehensive plan.

Once a business idea is selected, it is highly recommended that we sharpen the concept by a detailed planning process. The result of this step is a comprehensive business plan, with its major components being the marketing “mix,” the strategic plan, operational and logistical structures, and the financial proposal. The purpose of the business plan is to recognize and define a business opportunity, describe how that opportunity will be seized by the management team, and to demonstrate that the business is feasible and worth the effort.

While this may seem a daunting task to first-time entrepreneurs, many “veterans” have found that there are software packages that can help to organize and format the material required for a comprehensive plan. These packages are particularly helpful to those who are intimidated by starting from a blank piece of paper.

So is there a downside to purchasing software that has most of the text “in place?” The text is not always well-written, “fill-in the blanks” tends not to produce very fluid copy, and the parts you write may be in a different style than the words surrounding it. Some experts suggest that the real usefulness of such packages lies in the examples, when they are in a business similar to yours.

The sales leader in “plan-ware” is Palo Alto Software’s Business Plan Pro (BPP, paloalto.com). We have tried several packages that are comparable to BPP; you should evaluate a few to find which might fit your unique style best. Figure a price point of about $120 for standard versions of all. Others to consider would be:

 Planware’s PlanWrite (planware.org)

 PlanMagic’s Business (planmagic.com)

In addition to BP software, you may want to consider online services.

 Fundable Plans (fundableplans.com); $40 per use

Some of the factors that you would want to consider in your evaluation are:

User-friendliness – easy to get productive quickly; self-guiding, not having to go back-and-forth with instruction manual or help screens; “wizards available for some functions.

Interface – the package works with the other software that you will need in the process, such as Word, Excel, and PowerPoint.

Support – free technical support by telephone or email; useful help screens; program updates; and, resources such as articles and links that assist in the business planning process.

Features – functions beyond the basic “fill-in-the-blanks” templates, such as PowerPoint templates; market research data; industry codes; lots of rich examples; and, assistance with the more technical aspects of the plan, such as finance and strategy.

One of the dangers of using such packages is that your focus may shift from producing a complete and convincing plan to simply filling out the templates. Their real value lies in their support of getting it in writing.

Many entrepreneurs insist that their business concept is so clear in their heads that the written plan can be produced after start-up; this attitude “short-circuits” one of the major benefits of producing the plan. The discipline of writing a plan forces us to think through the steps we must take to get the business started, and, to “flesh out ideas, to look for weak spots and vulnerabilities,” according to business consultant Eric Siegel.

A well-conceived business plan can serve as a management tool to settle major policy issues, identify “keys to success,” establish goals and check-points, and consider long-term prospects. The plan must realistically assess the skills required for success of the venture, initially and over the long run, and match the skills and interests of the team to these requirements. Test the plan, and an accompanying oral presentation, on friends whose business judgment you value. Let them assume the role of a prospective investor or lender.

John B. Vinturella, Ph.D has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

Venture Research Service Provider

If you are considering buying or selling a service industry business you need to start with an evaluation. This can be very complex and the use of a venture research service provider can often give you a value that you can easily defend. The following article outlines the process, and is extracted from FBB Group Ltd: https://www.fbb.com/company-information/recentarticles/how-to-value-a-service-business.

Service businesses run the gamut, from accounting firms, to drycleaners, to janitorial services, engineering, public relations firms, and many other options. Despite their disparity, they all have one thing in common: offering a service to clients.

Valuing a service business involves many factors – a tidy, one-size-fits-all formula doesn’t exist. That being said, sellers should recognize that buyers will be particularly interested in certain characteristics for most service businesses. This, again, is where a venture research service provider can come in.

Normally, valuation is based on several criteria, including: history of profitability, cash flow, overhead, intellectual property, company reputation, number of years in business, opportunities for further growth and added profits, stability of key employees/management team, and customer diversification.

Crucial areas for valuation include intellectual property, ongoing relationships with clients, and having a good team in place – ensuring the company will retain its competitive edge, even when the seller (who typically drives new and repeat business) leaves.

Without significant capital assets, key customers and employees are critical. A strong management team adds to the value of a service business (often more so than in manufacturing) and, conversely, it can detract from value when there’s a poor or inexperienced team.
Another measure of value may include the amount of market share. Companies that provide a niche service and don’t have much, if any, competition will command higher multiples of value.

Cash flow is “king,” so the primary consideration for bankers is a buyer’s ability to stay current on loans for acquisitions and working capital. Banks focus heavily on reliable cash flow for service businesses, given that there is little, to no, collateral within the service business itself.

Whether you’re in the market to buy or sell, understanding the various considerations of valuation for a service business will make the process smoother and increase the probability of a more successful transaction.

Dr. Vinturella, has over 40 years experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site https://www.jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business. “ See https://www.jbv.com/8steps, available on Amazon.

Adventures in Self-Publishing

Do you have an idea for a book? Unless you can find a traditional publisher to fund it (no small feat) your only alternative is to self-publish. There are essentially no standards to what can be self-published. Of course, you fund the project yourself. For an overview of self-publishing see http://www.sfwa.org/other-resources/for-authors/writer-beware/pod/.

There are several companies that offer packages for on the order of $4,000. I used iUniverse out of Bloomington Indiana. For one’s investment, one gets the book ID (ISBN), the style of the book and delivery of a print-on-demand (POD) copy. An alternative is to print offset, a process that runs in quantity. With this you get into the inventory management business.

Few authors get by with the standard package. The publisher’s marketing resources all cost extra and it seems to me that they were a total waste. With offset there are also warehouse fees. The average self-published book sells 250 copies over its lifetime. In addition the eBook competes with the hard copy.

I made a terrible mistake, aided by misinformation about royalties from my book representative at iUniverse, and printed 2,000 copies of my book. For information on the book see https://www.jbv.com/8steps. This site also contains a link to purchase the book. After I realized the mistake I tried to back out, and the vendor was extremely uncooperative. I took them to small claims court and got close to half of my purchase returned.

So, what advice would I give? Don’t print offset. Live with the POD even though the return is less. Do more research than I did; there are less expensive alternatives, particularly if you are comfortable managing your own marketing. Choose an underserved topic; mine is about business startup and the selection is huge.

Entrepreneurial Career Consulting

The following is excerpted from Careers in Entrepreneurship, http://careers-in-business.com/en.htm. If you find it overwhelming, consider entrepreneurial career consulting. There are sources of free consulting such as SCORE, http://www.score.gov.

Entrepreneurs start new businesses and take on the risk and rewards of being an owner. This is the ultimate career in capitalism – putting your idea to work in a competitive economy. Some new ventures generate enormous wealth for the entrepreneur. However, the job of entrepreneur is not for everyone. You need to be hard-working, smart, creative, willing to take risks and good with people. You need to have heart, have motivation and have drive.

There are many industries where wealth creation is possible be it the Internet and IT, personal services, media, engineering or small local business (e.g., dry cleaning, electronics repair, restaurants).

But there is a downside of entrepreneurship too. Your life may lack stability and structure. Your ability to take time off may be highly limited. And you may become stressed as you manage cash flow on the one hand and expansion on the other. Three out of five new businesses in the U.S. fail within 18 months of getting started.

It’s important to be savvy and understand what is and is not realistic. The web is chock-full of come-ons promising to make you rich. Avoid promotions that require you to pay up front to learn some secret to wealth.

Look for inefficiencies in markets. Places where a better idea, a little ingenuity or some aggressive marketing could really make a difference. Think about problems that people would pay to have a solution to. It helps to know finance. It’s a must to really know your product area well. What do consumers want? What differentiates you from the competition? How do you market this product?

A formal business plan is not essential, but is normally a great help in thinking through the case for a new business. You’ll be investing more in it than anyone else, so treat yourself like a smart, skeptical investor who needs to be convinced that the math adds up for the business you propose starting.

John B. Vinturella, Ph.D. has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

Franchise Business Consultant Service 2

A franchise is a continuing relationship between a franchisor and a franchisee in which the franchisor’s knowledge, image, success, manufacturing, and marketing techniques are supplied to the franchisee for a consideration. This consideration usually consists of a high “up-front” fee, and a significant royalty percentage, which generally require a fairly long time to recover.

Here are some statistics about the industry (http://www.azfranchises.com/quick-franchise-facts/):

• There are an estimated 3,000 different franchisers across 300 business categories in the U.S. which provide nearly 18 million jobs and generate over $2.1 trillion to the economy.

• Franchises account for 10.5 percent of businesses with paid employees; almost 4% of all small businesses in the USA are franchises.
• It is estimated that the franchise industry accounts for approximately 50% of all retail sales in the US.

• The average initial franchise investment is $250,000- excluding real estate; the average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.

Franchising offers those who lack business experience (but do not lack capital) a business with a good probability of success. It is a ready-made business, with all the incentives of a small business combined with the management skills of a large one. It is a way to be “in business for yourself, not by yourself.”

Franchises take many forms. Some are simply trade-name licensing arrangements, such as TrueValue Hardware, where the franchisee is provided product access and participation in an advertising cooperative. Some trade name licenses, particularly in skin-care products, are part of a multi-level marketing system, where a franchisee can designate sub-franchisees and benefit from their efforts.

Others might be distributorships, or manufacturer’s representative arrangements, such as automobile dealerships, or gasoline stations. It could be Jane’s Cadillac, or Fred’s Texaco; the product is supplied by the franchisor, but the franchisee has a fair amount of latitude in how the business is located, designed and run. The franchisor will frequently specify showroom requirements and inventory level criteria, and could grant either exclusive or non-exclusive franchise areas.

The most familiar type of franchise, however, is probably the “total concept” store such as McDonald’s. Pay your franchise fee, and they will “roll out” a store for you to operate.

The advantages can be considerable. The franchise fee buys instant product recognition built and maintained by sophisticated advertising and marketing programs. The franchisor’s management experience and depth assists the franchisee by providing employee guidelines, policies and procedures, operating experience, and sometimes even financial assistance. They provide proven methods for determining promising locations, and a successful store design and equipment configuration. Centralized purchasing gives large-buyer “clout” to each location.

The large initial cost can be difficult to raise. The highly structured environment can be more limiting than it is reassuring. Continuing royalty costs take a significant portion of profits. You may wish to use a franchise business consulting service. Several small business periodicals evaluate and rank franchise opportunities. There are now several franchise “matchmaking” firms who can assist in the evaluation process.

How do you choose among all the available franchises? Does it complement your interests? Even if you hire someone to manage the business, expect to spend a lot of time with the operation. Is the name well known? If not, what are you paying for? Is the fee structure reasonable, and all costs clearly described?

Is the franchisor professional? Evaluate them on the clarity of the agreement, and how well your rights are protected, the strength of their training and support program, and their commitment to your success. Be sure to talk to current franchisees about their experiences. Beware of a franchisor committed to a rate of growth that exceeds their ability to manage; they may not be sufficiently interested in the sales they have already made.

Is a franchise a sure path to instant riches? Is it the only hope for independent firms in today’s market? Can Jerry’s Quick Oil Change compete with SpeeDee? Does the franchise deliver business that we might not have gotten anyway? Is it really entrepreneurship; did I go into business or did my money?

This is excerpted from “8 Steps to Starting a Business.” See https://www.jbv.com/8Steps

Raising Entrepreneurial Capital

This writer, with Dr. Suzanne Erickson, is co-author of the book “Raising Entrepreneurial Capital.” The second edition of the book is currently published by Elsevier.

Raising Entrepreneurial Capital guides the reader through the stages of successfully financing a business. The book proceeds from a basic level of business knowledge, assuming that the reader understands simple financial statements, has selected a specific business, and knows how to write a business plan. It provides a broad summary of the subjects that people typically research, such as “How should your company position itself to attract private equity investment?” and “What steps can you take to improve your company’s marketability?”

Much has changed since the book was first published, and this second edition places effects of the global recession in the context of entrepreneurship, including the debt vs. equity decision, the options available to smaller businesses, and the considerations that lead to rapid growth, including venture capital, IPOs, angels, and incubators. Unlike other books of the genre, Raising Entrepreneurial Capital includes several chapters on worldwide variations in forms and availability of pre-seed capital, incubators, and the business plans they create, with case studies from Europe, Latin America, and the Pacific Rim.

Here is how one reviewer evaluates the book:

“I have been an entrepreneur, venture investor or venture capitalist most of my 30-year professional business career and have been involved in the startup of over 40 companies, some very successful and some not so successful. After reading Raising Entrepreneurial Capital, my only regret is that I did not have access to this book of business knowledge at the beginning of my career. Most of the lessons I learned on the job (many the hard way!) trying to raise money, every way known to man, are in this book and I find it amazing how much of it is accurately covered in depth by the authors. It will be a great textbook for teaching entrepreneurial finance. I have never seen a book that covers everything one needs to know in such great depth. This book should be required reading for anyone thinking about starting up a new business. It will save a lot of wasted time and heartache for a new entrepreneur.”

— Kent L. Johnson, Chairman and Managing Director, Alexander Hutton Venture Capital, Chairman of the Advisory Board of Seattle University’s Entrepreneurship Center.

John B. Vinturella, Ph.D. has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

Best Home Business Consultant

The following is excerpted from Entrepreneur magazine:
“The dictionary defines a consultant as “an expert in a particular field who works as an advisor either to a company or to another individual.” Sounds pretty vague, doesn’t it?

Businesses certainly understand what consultants are. In 1997 U.S. businesses spent just over $12 billion on consulting. According to Anna Flowers, spokesperson for the Association of Professional Consultants in Irvine, California, the association has recently noticed an increase in calls for information from people who want to get into the business. “The market is opening up for [the consulting-for-businesses] arena,” Flowers says.

Melinda P., an independent consultant in Arlington, Virginia, thinks more people are getting into the consulting field because technology has made it easier to do so. “The same technology that has helped me to be successful as a consultant has made it easier for others to do the same,” she says.

A consultant’s job is to consult. Nothing more, nothing less. It’s that simple. There’s no magic formula or secret that makes one consultant more successful than another one. But what separates a good consultant from a bad consultant is a passion and drive for excellence. And–oh yes–a good consultant should be knowledgeable about the subject he or she is consulting in. That does make a difference.

You see, in this day and age, anyone can be a consultant. All you need to discover is what your particular gift is. For example, are you very comfortable working around computers? Do you keep up with the latest software and hardware information, which seems to be changing almost daily? And are you able to take that knowledge you have gained and turn it into a resource that someone would be willing to pay money for? Then you would have no trouble working as a computer consultant.”

Be the best home business consultant that you can be. As your home consultancy grows be sure to request testimonials from satisfied customers. These can be displayed prominently on your website.