It happens to everyone.
At some point, you’re going to want to retire (even if that feels distant and unlikely right now….).
And when that happens, you might want to sell your business (even if it feels like one of your own children right now….).
But when you find a buyer, one of the first things they’re going to ask is: To what extent does the business rely on you? It functions well now. But will that continue when you’re busy sunning yourself in Spain / enjoying your time with your grandchildren / off on your world cruise?
They are going to want assurances that you have built a business which works smoothly, whether you are there or not.
That is why generating reliable financial information about how your business is functioning and measuring Key Performance Indicators are so important.
As we’ve been discussing over the past few weeks, you need these things to continue managing your business confidently as it grows.
They help you see exactly what is happening deep in your business, even when you are no longer as in touch as you used to be with day-to-day operations.
But they’re not just for you.
Having KPIs and solid financial information in place adds massive value to your business.
That’s because running the business is no longer dependent on your personal insights, and your gut feeling for what’s going on. There is objective data which another competent CEO or your Finance Director can rely on, to make informed decisions about your company’s future.
Your success is replicable.
The business is also far more resilient, because it can continue running smoothly, no matter who’s at the helm.
When you reach that point, your business has successfully moved from its ‘adolescent’ phase, when it is struggling to emerge from the shadow of its owner, to ‘maturity’.
You finally have an independent, ‘adult’ business, which can run on its own, without you.
Congratulations! You can now choose to focus on the parts of the job you really love, grow the business to even dizzier heights – or allow retirement to beckon. Buyers will see a lot of value in a business which is dependent on processes, not on specific people.
If you ever want to sell your business, it would be a mistake to treat this systemisation as a matter of choice – a nice ‘extra’ to offer your buyers.
In most cases, buyers wouldn’t touch a business which is still dependent on the previous owner with a 10-foot barge pole. And if they did, the value of the business would be dramatically reduced.
It can take years to get your business to the point where it is self-managing. And ensuring you have good financial information and KPIs are key steps on that journey.
So don’t wait. If selling might ever be on your agenda….
….And you want to add massive value to your company….
….And make it sellable in the first place…
Just hit ‘reply’, and let’s talk about how we can help you get there.
