Many business owners work hard to grow their businesses, but often forget to plan for the day they might want to sell. This can cause problems down the line. Did you know that less than 10% of small business owners succeed in selling their business, mostly because they had a good plan for exiting?
In this article, I’ll show you how to avoid this problem, and make sure your business is sellable and valuable.
Keep Your Finances Healthy
Step 1: Make Your Operations Work Without You
Buyers want a business that can run without its owner. This means having clear systems and processes in place that your team can follow. “If you are the fulfillment, no one wants to buy your business.” Nathan Hirsh, who founded and sold FreeeUp.
Expert Tips:
Write down every step in your business, from taking on new clients to everyday tasks, in a standard procedure. Every procedure should be clearly described, quick to find and easy to follow.
Use tools to automate the tasks that are done over and over again. This saves time and reduces mistakes.
Make sure your team can run the business without you. Your business shouldn’t rely on just one person. When you take a few weeks of vacation, your business shouldn’t miss a beat.
Leona Watson’s Story:
Business owner Leona Watson explains “you need to take yourself out of your business”. She did this by exercising in the morning and not going to the office till noon. This resulted in her “no longer being a distraction to the team”. Then she created procedures instead of “constantly winging it, and then wondering why your team is constantly bothering you with easy-to-answer questions”. The business moved from being in her head, to being in a document that others could use.
