The Hidden Goal of the Smartest Business Owners 
March 25, 2014

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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 five reasons 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:
 
1. "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....
 
2. "Sellable" Businesses are more fun
 
Running a 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.
 
3. "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 independence. 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.
 
4. "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 thought 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 "jalopy".
 
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.
  
Are you 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
 "Sellability Score" via the questionnaire on my website. It takes about thirteen minutes and your responses are kept confidential

You can complete the questionnaire here "Sellability Score"! 

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!

Be Great,

Jim Flemming
Certified Business Coach and Sellability Advisor
FocalPoint Business Coaching Excellence
1-506-849-6319 or toll free: 1-877-223-0622