Welcome back to my weekly articles on business building. In order to extract value from a business it needs to be sellable. To be sellable a business needs to be successful independent of its owner, in other words it needs to be set up so that it can run without the owner. Buyers are not interested in a business that requires its owner(s) to constantly be available to make decisions. In this article we discuss why it is important to have a business that can functions effectively without the owner(s) and how you can set your business up to be owner independent most effectively. .
Most owners get one chance to get it right and being ill prepared should not be an option, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a salable asset. If you must sell your business to fund your future lifestyle, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.