It takes a lot of effort to create a business. Many hours, much sweat, so many tears, go into creating your dream. For many business owners, the end goal of your business-building journey is to be able to sell your company to someone else for a substantial nest egg.
But even if selling is not your personal business-building goal, even if you plan on leaving this business to your children or working in it until you draw your last breath, there are still a number of reasons why it is good for you to build as though you were going to sell it!
You see, even if you have zero intention of selling your business, building it up as though you are going to sell will help you build a better business – a more valuable business. That is a business that is producing more value for you, not just for a potential buyer!
These are the reasons you should have a “sellable” mentality regardless of which stage of business you are in:
- Building a business using the viewpoint of how an outside investor would judge it, will ensure you keep a high level of ethics, integrity and openness. It can be tempting to cut corners when you are focused on survival. But if you are focused on building value, you have strong motivation to stick by your own values, even when things are tough.
- Building as though you want to sell will ensure you put good operating procedures in place. Procedures that make you more efficient, and procedures that result in you personally being less-and-less involved in the day-to-day of your business. In other words, it makes your company more efficient and it gives you more freedom.
- Building with future-value in mind helps you create a business that is worth more. The more value your business has to a potential buyer, the more money it is making you while you own it!
- Building with future-value in mind means that you will be far more aware of future risks. So you will plan better and put more contingencies in place for disasters. Your business will be stronger and safer as a result.
In other words, if you build as though you intend to sell, you will build something value, that generates good money for you, in the most efficient way possible, while diversifying risk and ensuring sustainability. And, it will create more personal freedom for you as well.
It’s a no brainer!
If you would like some assistance on how to make all of this possible, give us a shout. We would love to chat you through the ways you can build a sellable business – whether you want to sell it, or not!
