As with most small, privately owned businesses, the owner is typically the one that drives sales and business growth: they are the "Rainmaker" in the company. Unfortunately, they reach the limit of their capacity in that role as "running the company" starts to take on more of their time, and their company ultimately plateaus, but they remain the key driver of success. So long as the owner continues to be the driver, the value that can be realized from a sale of that business is limited.
Companies that attract the highest valuations are the ones where the owner has transitioned to become an "Architect": the person who creates structure, processes, procedures, and a team that understands the owner’s vison, and who are capable of executing on that vision without the owner’s direct involvement.
In order to make that change, an owner must be willing to make a significant shift in their paradigm for their business. Unfortunately, most small business owners have difficulty letting go, and it is this, more than anything ultimately determines how sellable their business is.
A significant component of the Exit Planning process is value enhancement: a disciplined framework that transforms a business from an owner driven concen to a team driven enterprise with the skills, discipline, tools, and vision to excel and grow ultimate sale value, after all, that is what a buyer wants.
To see whether you are ready for your exit, complete our PREScore Assessment here: https://lnkd.in/gCZ9Jswf
