The ultimate dream for many business owners is to have a business that's not reliant on them to show up everyday.
Not only does this create more personal freedom, it also impacts the value of a company.
A company which runs on autopilot is highly sought after by buyers, and they are willing to pay a premium to find one. But, a company that requires hands-on involvement from its owner is likely to result in a heavily discounted offer.
Why? Because an acquirer wants to know that when they take the reins, the business will keep generating a steady stream of income, and it won't all fall apart because you've left!
This upcoming summer, consider the possibility of giving yourself a lengthy break. See how your business runs while you’re not around.
It’s highly likely some things will go wrong. But by identifying areas that need improvement, you can put steps in place to take your business one step closer to operating independently - while making it more valuable.
Here is an Eight Step plan towards Owner Independence for your business
You know it’s important to have systems and processes in your business.
After all you won’t be able to scale without them.
Right now, the business is still heavily reliant on you. This is making it harder to keep on top of things and allocate time to focus on growth.
That’s why you’ve started taking time to write out procedures.
You’ve documented them in a manual and explained them to the staff. You’ve even placed them in a central location so everyone can have access to them.
The problem is, the staff seem to just ignore them and choose to do it their own way!
Often the issue is not the actual processes themselves, nor the staff.
It’s the way the information is presented.
Family businesses form the backbone of economies the world over.
Examples include Amy’s Kitchen, started by a US couple who turned their kitchen-based organic food business into a $500 million turnover company, and the fifth-generation Finnish paper firm, founded in 1851, that today is one of the world’s largest and most successful fibre-based businesses.
Highly profitable family firms such as these can also be found here in Australia. They include the Fairfax, Myer and Linfox companies, all of which were once small family businesses. Though most family businesses don’t achieve such fame and fortune, they most certainly contribute significantly to our economy, accounting for 70-percent of all businesses in Australia while turning over an average of $12m each per year.
Have you ever wondered what determines the value of your business?
Perhaps you’ve heard an industry rule of thumb and assumed that your company will be worth about the same as a similar size company in your industry. However, when we take a look at the data provided by The Value Builder SystemTM, we’ve found there are eight factors that drive the value of your business, and they are all potentially more important than the industry you’re in.
Not convinced? Let’s look at Jill Nelson, who recently sold a majority interest in her $11 million telephone answering service, Ruby Receptionists, for $38.8 million.
Your business has supported your family, supported your dreams, supported your employees and has made a difference to many lives.
Let’s face it – you’re still in business so you’ve obviously done a lot and your business has proven its worth over many years.
Whether you are looking to retire to spend more time with your family and living your dreams, whether you are looking to retire because you’ve always had a goal retirement age or whether it is simply time to hand the reigns to the next generation, the fact is – you’ve decided to retire.
How carefully have you really considered your business in that decision?
How bold will you be when it comes to selling a business?
Dan Martell was willing to go big! In a recent interview with John Warrillow, Dan explained how he invited 5 CEOs, from likely acquirers, into a competitive bidding process for his company. His success rested wholly on one thing…Knowing precisely who his likely acquirers were.
Much like selling a home, your business is likely to be one of the largest sales you will attempt. It is also highly likely that you will not be an expert in business sales, in which case, you should certainly turn to a specialist business broker.
Following are ten compelling and measurable reasons to use a Business Broker in the sale of your business.
Are you tired and frustrated with the corporate world?
Sick to death of the moving goal posts, the politics, and the elusive bonuses that often do not materialise because an unrelated department has not performed?
Do the ‘corporate values’ feel more like a repetitive mantra without any substance?
If you answered yes to any, or maybe all of the above, never fear – you are in great company. Thousands of Australians every year leave the (seeming) security of a corporate job to become their own boss.
And I was one of them.