A client of mine is planning to sell his business in the next three years. A question that came up during our discussion was; how do I build and structure my business so that it would attract the right buyer?
Looking at it from a different angle is: “What would scare someone from buying my business today?” Once you have identified that, you can start filling in the gaps.
My perspective is that you, as the current business owner, should make sure that your business has the right capabilities to guarantee long term sustainable results.
This means that every decision that you make must be directed toward building value into your company, even if you don’t intend to sell it for years to come.
After all, you want to have a business that provides you with the lifestyle that you desire.
Whether you keep it of sell it, your business must be attractive enough to suit your own lifestyle, or that of your potential buyer.
What will make your business appealing to you, or a prospective buyer?
- A healthy income stream: Do you have a system that has been tested and proven over time to bring in a consistent income stream?
- A handsome profit: After all that is why most businesses owners invest their precious time, energy and effort into building their businesses.
- A proven marketing and sales machine: This is a system that produces consistent leads from your ideal target client base, which is converted into sales at the right value.
- A strong customer base: Who appreciates the value your business is producing for them, and therefore comes back more often and refers your products and services to other potential customers.
- A structured, efficient and systemized process flow: That delivers excellent customer service on a consistent level.
The question that you should be asking is: If I were to leave my business now, will there be control, or is it going to be chaos? The more the business relies on you, the less valuable it will be to you, or to your potential buyer.
In my opinion every business should be made ready to be sold, even if you plan to never sell it. In that way you can get the most value out of your business.
It’s never too late to start setting your business up as if you were going to sell it. In so doing, you will be ready should the need arise, rather than regret what you could have done earlier.
I can show you the power of coaching and the impact that great coaching can have on execution in your business – and your life.