Ready, Set, Sell Your Business
“I’m not ready to sell my business, but I want my business to be ready to sell.” This statement, made by one of our clients sums up the ideal situation for any business owner to create for themselves.
Having a Ready, Set, Sell business means that your business is ready to sell at any given time. As a business owner this gives you the ultimate freedom to stay or play.
- You can continue to work in your business and reap the financial rewards of an owner/operator.
- You can replace yourself in some of the roles you choose to give up and enjoy doing the work you love.
- If you are unable to work, your business can continue to sustain your family and employees.
- You can decide to sell at any time, and at maximum value, because your business is designed to get results without you.
What to focus on to be a Ready, Set, Sell business owner:
- Replace yourself. Your business should not depend on you to be there to sell or satisfy customers. If your business can’t get the results it needs without you the market value will be reduced.
- Keep your business financial reports current and accurate. Having current and reliable financials ensure you, and your managers have the information needed to make critical business decisions. Additionally, when you go to sell your business, you will have the ready-to-go financial information to price it, and to provide to qualified buyers for review. Not only will you gain buyer trust by providing them with accurate and timely financials, but you also won’t be tipping your employees off that you’re looking to sell by suddenly asking for financial reports you don’t normally look at.
- Identify and track your business Key performance Indicators. KPI’s measure the success of your business in comparison to your business goals. Knowing what business metrics to measure and how often to check on them gives you the freedom to be absent while knowing your business is on track or learning it might need you to lean in and address concerns. Six core business KPI’s are listed below, however each of these have additional metrics that can serve as early warning detection alarms enabling you and your team to be more proactive in addressing potential threats to your business stability.
- Revenue growth
- Revenue per customer
- Gross and Net Profit margins
- Cost of Acquiring a customer
- Customer retention rate
- Customer satisfaction
As you step away from the day-to-day of your business and build your remote-control dashboard there are more indicators to consider, such as key operational metrics, marketing metrics and employee engagement metrics.
- Document your business processes. Albert Einstein is credited with the quote, “You don’t really understand something unless you can explain it to your Grandmother.” In our Seller Insights article; Think Like LEGO to Increase Business Value we speak to how systems-based businesses are more profitable and provide more freedom because every employee has a clear picture of what they need to achieve and the step-by-step instructions to achieve success.
- Always know the market value of your business. If you don’t already know the value of your business in today’s market – FIND OUT! This is non-negotiable for a Ready, Set, Sell business owner. You can’t change what you don’t know and knowing the market value of your business helps you identify the actions you need to focus on to confidently exit when you choose.
Having a Ready, Set, Sell business is ideal, and there is no time like today to get started! Talk to a Benchmark Business Group Advisor today to learn more about designing your business to have more value, or preparing to sell your business.