What's for sale, you or your business?
Oct 21, 2013 / 5:00 am
One of the most common problems for business owners looking to retire is selling their business in a timely manner. One stumbling block in selling your business is if the success of the business is reliant on you being there 24/7. The burning question is how can you make yourself redundant so your business can thrive without you?
Here are a couple of factors to consider:
#1: You’re more likely to get an offer if your business can survive without you for a period of time.
Are you having trouble swallowing this one? There are a couple of simple changes you can make to test this theory. Try stopping receiving e-mails and phone calls while you are away from the office or spending less time at the office and take evenings and weekends off. This means that you are unavailable to staff, customers and suppliers. This may go off without a hitch; however this may also expose a weakness in your business, for example with an overly reliant employee.
#2: Companies with a management team (as opposed to a sole manager) tend to get offers at a higher rate.
If you don’t have a management team, look at hiring a mentor or someone who can take over your position.
Here are a few ideas:
- Identify someone from within. They tend to have a better grip on the business and you know what their work ethic and attitude is from experience.
- Give your mentor a special project. This will allow you to confirm your suspicions as to whether they are up to the challenge.
- Process everything you can. When you have everything documented it is easier for your replacement to pick up the manual and follow it as opposed to have to re-invent the wheel.
- Become a leader and coach. A good way to transition into this role is to let your mentor have some slack. Give them the reins on a project and ask questions as opposed to telling them what to do.
Remember – Your business isn’t your home and you’re not your business. So don’t live in it! Build it to Sell.
If you are considering selling your business within the next 5 years, take a moment to evaluate your business. Click here to take the Sellability Score.
Read more Navigating Your Business articles
- Not all revenue is created equally Nov 25
- What's for sale, you or your business? Oct 21
- Adding value as a middleman Sep 28
(Click for RSS instructions.)