Welcome back to my weekly articles on business building. In order to extract value from a business it needs to be sellable. Businesses that are efficient and deliver value to their customers are attractive to buyers. The best way to deliver value to customers is to have solid processes and procedures. Standard Operating Procedures (SOPs) ensure profitability, quality, & efficiency. They provide a consistent experience for customers, allow for scalability in operations, and can be used to provide training for team members. Companies that focus on delivering quality goods and/or services in a consistent, timely and stress-free manner are the ones who can create significant incremental sellable value.
Most owners get one chance to get it right when they decide to sell, yet most owners cannot sell the business they built (only 1 in 10 are successful) because they did not build a salable asset. If selling your business to fund your future lifestyle is a must, ask yourself whether you are prepared or not, and then identify what you need to do to get to where you need to be.
With up to 76% of Canadian businesses reporting that they hope to exit in the next 10 years, being unprepared might cost you both your legacy and your retirement.