Having consulted with many businesses from a range of sectors we have often posed the question: “What are your business goals for the year?“
One of the most common answers is that business owners have a profit goal they want to achieve. They may also have a top line revenue number that’s important.
However - whilst those goals are important, there is another objective that may have an even bigger payoff: building a sellable business.
Often when business owners think about exiting a company, they conjure the image of a spectacular business sale where a strategic buyer swoops in – pays a fortune - and they ride/sail off into the sunset. The reality is that there are several different ways to exit the day-to-day operations of a business.
So. what if you want to stay? It could be argued that this is irrelevant. However, there are a few key reasons why building a sellable business should be your most important goal, regardless of when you plan to push the eject button.
Many business owners spend the majority of their day on ‘the operational minutiae’ and seeing your business from a buyer’s perspective may provide new opportunities that you would not explore otherwise.
If you do want to go - have you thought about where you want to go and what might be next? Running a business can leave little time for planning your own future which can result in a void when you do eventually exit. Smart founders align their exit type with their reason for leaving which allows them the best transition from one stage to the next.
Unfortunately, research has shown that one year after exit, 75% of owners say that they regretted their decision. Only 5% ended up 'happy' with their proceeds from their sale.
So if you want to go … and to land in a better place, start planning early.
We are running an event on May 22, 2019 to help companies at any stage in their business to frame the potential value of their business. We’ll be talking about the benefits of planning for an exit – irrespective of when. You can find us on Eventbrite.
There is no charge for the event however spaces must be booked in advance. Refreshments supplied.
What are your business goals for the year.