We all have a business goal that may seem seem blindingly obvious, which could be based around profit, turnover or increased sales. These are all sound foundations for objectives to work towards, but what if there was a goal business owners could aim for that was concealed because they might not be considering it at all?
In order to set this business goal, you would first have to think ahead to a time when you might want to move on. Then you have to consider how you would prepare your business for sale.
Paul Dodgshon is a director of Uscita Solutions, in Northwich, Cheshire. He explains how, by taking this view of their company, business owners see where there’s room for improvement. “It’s like selling a house, where you make sure it’s looking at its best to maximise its value”, he explains. “But in fact, by doing this, you’re actually improving it as a place to live in, whether you actually sell it or not”.
The qualities that will make a business sellable are, in fact, qualities that will make it attractive. This means work, regardless of the end result. There are key reasons why, if you aim to increase the sellability of your business, you improve it as a going concern.
Your ‘Freedom’ Business Goal
“The first of these is freedom, both financial and, if you’re a business owner, personal”, explains Paul. “Making a company less reliant on individual leadership involves strengthening its overall infrastructure. Once accomplished, the company has real financial value as part of an asset portfolio, and the owner no longer has to feel shackled to it”.
The Pleasure Principle
“Next is the pleasure principle”, Paul continues. “A better run business, where the nuts and bolts no longer require direct owner involvement, leaves more room at the top for strategic thinking and looking at the bigger picture. This is more enticing to prospects than dealing with the vital but taxing details”.
“Finally there’s the question of legacy. Should a business owner want to pass on the company rather than sell it, it needs to have real value and not be a burden for any successor to deal with”, concludes Paul. “Furthermore, business does involve ego. It is not necessarily a fault, but it does mean that leaving something of value resonates, whereas leaving behind a debt-ridden liability does not”.
How you prepare your business for sale has intrinsic value whether you sell it or not. It can bring about positive changes that increase its sellability and make it a better business all round.
Uscita Solutions have produced a guide which covers the issues highlighted in this article along with 7 other drivers that can improve the value of your business.
To download your free copy of this guide, please click on the link below;