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. Many business owners work for years, if not decades in their businesses only to find out they cannot sell it – they focused on creating income to support their lifestyle but did not focus on creating an asset that has value beyond that. In this article I begin the transition to talking about what an owner needs to consider and actions that they must do to create a sellable business.
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 sellable 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.