Is your business ready to sell? There is one simple test that tells you quickly. That’s all it takes to determine if your business is ready to be sold. Just one simple test? There are lots of factors. But this is a big one. Here it is: Can you go on an extended vacation and be confident that things will simply click right along? Simple answer, yes or no? If the answer is “yes” then you pass the initial litmus test and the chances are high that your business is ready for sale. If the answer is “no,” then you need to begin looking at why you are unable to leave for some period of time.
Can You Pass The Litmus Test?
The businesses that are in the best position to be sold are those that do not depend on the owner’s day to day, hands-on input. By contrast, businesses that have processes and procedures in place and run themselves are highly desirable and attractive to buyers. If a buyer looks at your business and sees that it cannot be run without your presence, the buyer will get nervous and go on to the next opportunity. They will flee quickly. You need to be replaceable! This may hurt your ego a bit. But, that’s the truth.
Everything that you can do today to being positioning your business to run without you there will move your business one step closer to being ready to sell. Buyers typically are looking for businesses that are well-run, profitable and can be taken over easily in a hand-off from an owner that the business does not heavily depend on. So, start today by looking closely at your role in the company. Begin to replace yourself with people, processes, managers, etc., whatever it takes to move you to a place where you can work on your business and not in it.
Leave a Reply