During the tail end of a business owner’s marathon, more times than not, that owner is an absolute essential part to keeping “shop” open and thriving. To build a business that you can sell and reap the rewards of – the typical “hub-and-spokes” model, where everything is solely managed and well-oiled by that sole entrepreneur – should be avoided. Critical tasks and roles should be placed into hands that can execute these with excellence and without the need of the owner. It is at the owner’s helm to get their business “in gear”, thus well-prepared for a successful and fruitful sell.
Most owners bear the weight of all business functions on their shoulders – and without them, there would be no revenue-generating, well-functioning business. At the end, tired and ready to retire, they shut their doors. In doing so, they are leaving a lot of money on the table. And I mean a lot.
To build a business that you can sell, you need to take your business in the direction that can live and thrive without you. Realistically, most buyers won’t need you, or even want you, after the transition period – and they need to know you don’t have all the keys to success of keeping the business booming. If you go on, say a nice vacation sailing the seas of Tahiti, with a Seaside Sunrise in hand, a few weeks pass by, and you return to your business sun-burnt, with sales increasing, your team handling all operations, and the business is just as good or better than you left it, that couldn’t be a better sign for buyers.
- 1 lean, highly-talented team
- Repeatable, recurring systems, customers, & revenue
- Handfuls of cold hard cash spelled out in clean financials (YOY profit & growth)
- Add in strategic spice, dawning a competitive edge
- Remove any waste (resources/motion/members)
- Adjoin with a Sell-Side Advisor
Aligning with an advisor to carry out the sell-process of your company will help you avoid the many complexities throughout the process. This includes the legalities, negotiations, valuations, communications, marketing efforts, and being equipped with in-depth professional counsel and guidance. An advisor can help you pinpoint value drivers, business attractiveness, market projections, and ultimately increase a business’s value and sale price from 10% to 35% and upwards.
This is not an easy feat to accomplish. There will be stormy waters. It requires a whole lot of grit and trust in the process. When the time comes for the next chapter, we hope you are kicked back and smiling at the business you created, built up, and sold; resulting in a legacy that can successfully live on and translate as a tangible asset in your bank account for the journey ahead.