What are your
business goals for the year?
If you're like
most owners, you have a Net Profit
goal you want to hit. You
may also have a top line Revenue
number that's important to
you. While those goals are important, there is another objective
that may have an even bigger payoff: building a "Sellable Business"
But what if you
don't want to sell? That's just not the right question. Here are
why building a "Sellable Business
" should be one of
your most important goals, regardless of when you plan to execute
your succession or exit strategy:
"Sellability" means freedom
One of the
fundamental ideas of "Sellability" is how well your company
would perform if you were unable to work for an extended time
frame. As long as your business is dependent on you personally,
there is not much to sell. Making your company less dependent on
you by building a management team and creating documented
process and system procedures for employees to follow means you
have the ability to spend time away from your business. Think of
the world of possibilities that would open up if it were a real
option not to go into the office tomorrow....
Businesses are more fun
business would be fun if you were able to spend your time
"working on the business" - strategic thinking and big picture
ideas. Instead, most business owners spend the majority of
their day on "fire fighting" and the trivial details of the day:
the government forms, the employee performance reviews, bank
reconciliation, customer issues, auditing expenses. The details
of company ownership that suck the enjoyment out of owning a
business. It is exactly these tasks you need to get into
someone else's job description if you are ever going to sell in the
time frame and at the price you want and need.
"Sellability" is financial independence
Each month you
open your brokerage statement to see how your portfolio is doing.
Not because you want to sell your portfolio, but because you
want to know where you stand on the journey to financial
. Creating a "Sellable Business
" also allows you
peace of mind, knowing that you're building something that-just
like your stock portfolio-has value you could choose to make
liquid one day.
"Sellability" is a gift
Imagine that your
first-born graduates from college and as a gift you give him your
prized 1967 Shelby Ford Mustang. Your heavily indebted child takes
it on the road, but after a few miles, the engine starts smoking.
The mechanic takes one look under the hood and declares that the
engine needs a rebuild.
you were giving your child an incredible asset, but instead
it's an expensive liability he can't afford to keep, and nor can he
sell it without feeling guilty.
You may be
planning to pass your business on to your kids or let your young
managers buy into your company over time. These are both admirable
exit options, but if your business is too dependent on you, and it
hasn't been tuned up to run without you, you may be passing along a
5. Nine women
can't make a baby in one month
There are some
things in life that take time, no matter how much you want to
rush them. Making your business "Sellable" often requires
significant changes; and a prospective buyer is going to want
to see how your business has performed for the three years
after you have made the changes required to make your business
"Sellable". Therefore, if you want to sell in five years, you
need to start making your business "Sellable" now so the
changes have time to develop, take hold and grow.
curious about how "Sellable" your company is and what you
would need to tweak it to sell when you're ready? Then it's
time to get your
If your business
needs help becoming more valuable or you just want to make 2014
Your Best Year Ever, give me a call. I am here to help!
Business Coach and Sellability Advisor
Business Coaching Excellence
toll free: 1-877-223-0622