Imagine its 12 months or two years from now. A potential buyer walks into your business and asks to see how things operate….
You happily walk her through your business pointing out:
- How these days it runs without you
- How you have systemized each and every process
- How from anywhere in the world you have the ability to log in to the management reporting system and instantly have a snapshot of the key profit drivers
Then with the click of a mouse you demonstrate this; you can clearly show that the company is indeed one worth buying, profits are healthy, and the business is one which has consistent sales and proven processes to continue selling.
You certainly have got her attention now; after looking at countless other businesses she was beginning to lose hope, that maybe buying a manufacturing company was not such a good idea.
Now she feels like she has just found the Holy Grail!
In this scenario, you are in the driver’s seat; whether you sell and for how much is your call. You have factual evidence that you do indeed have a healthy & profitable business.You can clearly demonstrate that it runs without you, you have processes in place to ensure that the business will continue to be profitable regardless of who owns it.
Wouldn’t that be nice? Is it realistic? Absolutely!
Now you may think this doesn’t apply to you or your business as you have no intention of selling, however being investor ready is much more than that; you need to build a business that will run without you, giving you a very saleable (and valuable) asset and the freedom to choose what to do with it.
To begin with, you will have an exit strategy when/if you need to sell and at the very least you will have real equity in your business.
Did you know that the majority of businesses for sale are in fact “unsellable”?
Having previous experience as a business broker I can tell you most business owners that asked me to sell their business:
1) Did not have anything more than a job with overheads and
2) They were in fact the business, if they didn’t turn up things didn’t happen.
Isn’t it time you worked on your exit strategy?
If so use the contact form below to get in touch:
- Building to What? 3 Reasons Your Business Needs an Exit Strategy (krispennella.com)
- Smartest Way to Manage Your Business? Get Ready to Sell It (inc.com)