The really big payday
As a Business Mentor I always ask; Having run your own business for many years is it now your time? Are you just going through the motions these days? How about the buzz you used to get, is it still there? Do you want to move on and spend some time travelling? or with a loved one? or perhaps learn something new?
Well, you aren’t alone, this is a typical journey for a small business owner. Yet one that we don’t really think about as its always too far off in the distance. The strange fact is though the more you think about it the more you will need to plan it.
Selling your business isn’t quite as simple as selling a house or a car. The reality is it’s a little more complex. However, with foresight and a sound strategy you will be in a much better position to have people competing for your business. You see that is what you really want isn’t it? Sure, you can put your business up for sale with a backstreet broker tomorrow. They will tell you lots of nice things about your business take their upfront fee and post it on a web page and if you are lucky might even make a couple of calls. But you are cleverer than that because remember you want your business to sell for as much money as possible.
So, as a Business Mentor part of my role is to ask questions like, what is going to make your business more attractive to a prospective buyer? Well for a start you should get you house in order. Staff contracts, really sound procedures and practices across the business. Good sets of financials preferably showing a nice steady increase over the years, a system for generating new business along with retention of existing clients. A strong management team and a workforce that are really engaged with the business. The cherry on top will be a client base with recurring revenue streams. Those good clients of yours that come rain or shine are spending with you on a regular basis month in month out. Now we have something that is starting to look attractive to a potential buyer. I can’t guarantee your business will be worth a lot of money, but I can guarantee if you focus on what your buyer will be looking for you will give yourself the best chance.
Finally, and equally as important, find yourself someone who is genuine and impartial. Someone who will help steer you through the process with sound advice and feedback.
A good business mentor supports their client on every stage of their journey towards their exit.