GROW your business … and sell it!
The main purpose of a business is to make profit – and thus growing your business makes sense.
Growing a business has many meanings, but most business owners will probably agree that it means more profit. It may also refer to getting more customers, more outlets, distributing to other sectors, employing more staff, building or acquiring another manufacturing plant, etc. Whatever meaning you give to the word GROW (or growth), I am sure you will agree that the ultimate reasons or goal for growing your business is to generate higher turnover – and thus higher profit.
Now that we have settled that growth is important for a business’s continued and sustainable existence – why does the title of this article refers to selling your business? Surely if a business is managed well, when it is growing and when profits are adequate to supply the owners and staff with a great income, there is no need or reason to sell it? Why on earth would I then suggest that you put your business on the market?
Let us look at this from another angle. If you want to sell your business – what is the ideal situation? Would it be easier to sell a struggling business or a growing and profitable business? When will you get the best price for your business – when it is small, making a loss and with no scope of growth? Or when it is dynamic, growing and generating a healthy income for its owners? You answer these yourself. The answer is obvious!
So if we agree that a growing business will ensure a better selling price and makes an easy sell, then we should all strive to grow our own companies. Right?
So to conclude my logic – let us consider WHEN you are going to sell your business. I believe that every business owner should have an exit strategy – in other words, you have to decide in advance WHEN you will sell your business. There are many reasons to sell a business, Some are:
- When you retire
- When the business becomes a liability (e.g. not making a profit, too demanding, loss of key personnel, economic conditions, etc.)
- When you or any of the shareholders die or become incapacitated due to an accident or ill-health.
- When you want to change your lifestyle or career path.
Many of the above suggestions cannot be planned for or is outside your control. So the truth is – some you can plan for, others are thrown at you.
Growing a business makes sense – while operating a growing business you will be rewarded handsomely. If the time comes to sell (whether it is voluntarily or forced upon you) you will receive a premium price for the business!
Grow your business … and sell it!
Prof Gary, the business coach, will ensure that your business is growing. So when the time comes, you will easily sell it at the highest price!