You should always be ready to sell your business. Here is why:
I know you don't want to sell your business today!
Your business is not only your source of income but also your lifestyle, daily activity, and baby. You started or bought it some time ago and made it what it is today.
But being prepared to sell your business is essential to your business planning.
In this blog, I will explore why you should always be prepared to sell it, even if you don't think of doing it immediately.
In other posts, I will focus on what you need to do to have your business always prepared for an exit.
1) Market changes: The markets are unpredictable, and changes can happen very rapidly. You must be ready to adapt or take advantage of opportunities when they arise. Market changes can have a positive or negative impact on your business.
a. Positive Impacts: A competitor or a supplier decides to buy your business at a premium price; an opportunity arises, and you want to sell your business to buy another one, etc.
b. Negative impacts: Your competition outgunned you; technological changes left your business obsolete; The industry itself is becoming obsolete.
2) Personal circumstances: Our health is unpredictable: You may have an accident or an illness that will render you unable to manage your business, or you may have a family member you need to take care of, or for some reason, you need to move to a different State.
3) Financial planning: Your business is probably your biggest asset. Not knowing the value and not knowing how to increase that value is a sign of poor financial planning. On the contrary, having a clear understanding of the value of your business and potential sale scenarios can help you make informed decisions about retirement, investments, and other financial goals.
4) Succession planning: Let's face it, most kids don't want to continue their parent's businesses. No matter how much you want to, most of the time, they will want to walk their path, and even if you plan to keep your business in the family or pass it on to a trusted employee, having a plan in place for the eventual sale of your business can help ensure a smooth transition and protect your legacy.
5) Peace of mind: Preparing to sell your business can provide peace of mind and reduce stress. Knowing that you have a plan in place and have taken steps to prepare for the possibility of a sale can help you focus on running your business and achieving your goals.
6) Starting with the end in mind: Starting with the end in mind is the most crucial aspect of any planning activity. By knowing how much you will want for your business and the drivers to get you there, you can plan your activities, determining which ones add the most value for your business. Always thinking about your business as if you were going to sell it tomorrow will give you the proper focus and the right sense of urgency to get the essential things done.
7) Setting your business up for sale IS NOT a 2-hour exercise! If you want to get the most money out of your business when you sell it, you can't start getting it ready when you decide to sell. You don't have enough time to do it. There are many variables you need to take care of, much careful planning to be done, and they need to be planned accordingly for a consultation on setting your business up for sale.
In conclusion, even if you don't plan to sell your business immediately, you must always be prepared for it.
Market changes, personal circumstances, financial planning, succession planning, peace of mind, and starting with the end in mind are all compelling reasons to be focused on preparing your business for a potential sale. Still, the most important reason is that it takes time, planning, and execution to have the company adequately set up for sale, and you won't get the best outcome if you haven't prepared ahead of the sale decision.
By being prepared, you can make informed decisions and ensure the best possible outcome for yourself, your business, and your stakeholders. Remember, being prepared doesn't mean you have to sell your business, but it does mean that you are ready if the right opportunity arises.