Our focus at The Strong Impact Academy is to help entrepreneurs build sellable businesses regardless of when they want to sell.
“I’m not planning on selling my business for years, so why should I care?”
Even if you’re not planning on selling your business in the near future, having a business that is sellable offers numerous benefits and advantages that can contribute to its long-term success and sustainability. Here are several reasons why you might want to have a sellable business, even if you don’t plan to sell for many years:
Financial Stability and Growth: Many of the characteristics of a sellable business, such as stable revenue streams, profitability, and scalability, are indicators of financial health and sustainability. By focusing on building a sellable business, you’re essentially working towards creating a solid foundation for long-term growth and profitability.
Owner Independence: Building a sellable business involves creating systems and processes that reduce the owner’s day-to-day involvement in operations. This can lead to greater owner independence and freedom, allowing you to focus on strategic decision-making, personal pursuits, or other ventures. When was the last time you took a real vacation?
Risk Mitigation: A sellable business is typically less risky and more resilient to economic downturns or unforeseen challenges. By diversifying your customer base, establishing efficient operational processes, and maintaining a strong market position, you reduce the risk of experiencing significant disruptions to your business.
50% of businesses end up on the market due to the 5 D’s – Death, Disability, Divorce, Disagreement, and Distress. Having a sellable business is like an insurance policy so that:
- your business actually sells (many businesses that go on the market don't actually sell)
- you get the ROI you deserve and most likely need if you experience one of these 5 D’s.
Flexibility and Options: Even if you don’t have immediate plans to sell your business, having a sellable business gives you flexibility and options for the future. You may eventually decide to sell due to personal reasons, changes in market conditions, or strategic opportunities. Having a business that is attractive to potential buyers puts you in a stronger position to capitalize on such opportunities when they arise.
Exit Strategy: Building a sellable business provides you with a well-defined exit strategy, even if you’re not actively planning to exit at the moment. Knowing that your business is sellable gives you peace of mind and allows you to plan for the future with confidence, whether that involves passing the business on to family members, transitioning to new leadership, or selling to a third party.
Maximizing Value: The process of building a sellable business involves focusing on factors that increase its value and attractiveness to potential buyers. By continually improving your business operations, financial performance, and market position, you’re maximizing its value not only for potential buyers but also for yourself as the owner.
Attracting Investment or Partnerships: A sellable business is more likely to attract investment capital or strategic partnerships, which can fuel growth and expansion opportunities. Even if you’re not considering selling your business outright, partnering with investors or strategic partners can provide access to resources, expertise, and networks that can help take your business to the next level.
Overall, focusing on building a sellable business aligns with the goal of creating long-term value and sustainability, regardless of whether you ultimately decide to sell or continue operating the business for many years to come.
Curious if Your Business is Sellable?
Take the Free Value Builder Assessment
