When I was in brokerage and met a business owner for the first time I would always ask “how did you get started in this business?”. The vast majority got into the business either by accident or necessity.
After reaching a certain level of income that would support their lifestyle, they would put the company in cruise control as they moved up their career timeline toward an eventual EXIT.
They hadn’t given much thought to the EXIT, only that they would sell their company someday for a lot of money. They did no planning for the EXIT and they didn’t put the company in a position for the sale.
These business owners represent the 80% of businesses that don’t sell. They are classic examples of owners that work IN their business and not ON their business. They treat their position as a job and nothing more.
The 20% of business owners that did sell were students of business. They were constantly searching for ways to improve their business so that they could increase its value, make more money in the process, and make themselves dispensable in the day to day operation of the business.
THE TAKEAWAY
If your company has customers. revenues, product or service, key staff, systems, channels of distribution, some infrastructure, then your company has some value. But if you can’t sell your company you won’t have access to that money that you depended on for retirement or your next big venture.
There are several elements to an EXIT Strategy, and POSITIONING YOUR BUSINESS FOR THE SALE is the most important. Because if you can’t sell your company then every other element of the EXIT Strategy is academic.
You should start early in your business career to position your business to sell. You not only make your business sales ready, but also reap a number of other benefits.
- Learn how to POSITION your business. Click https://www.xitpros.com/workshop to take our FREE workshop
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