Somedays I quit. I quit mentally. I quit physically. Then, I’ll wake up and do it again. Maybe I attack Monday again because I’m too proud to quit the people who depend on me. However, one day, I’ll really quit. I’ll really close the door one last time. When that day comes I must be prepared.
There are 5 things I am doing today to prepare for a possible sale of my business tomorrow.
1. I need to make sure my financial books are in order.
I can’t get sloppy. It’s nice to have cell phones and leases paid through the company. But when selling, the buyer likes to look at business and personal financial information separately.
2. A smart buyer wants strong profit margins.
Profit margins are net income/sales. If the margins are 25%, then the buyer will raise his eyebrows. If I can show a few years of consistent profit margins, then a buyer will pay a premium for consistency.
3. I can’t get greedy.
I reorganized my company to get key people ownership. It wasn’t a lot, but it was important to reward them. It was the right thing to do.
4. A buyer will pay for a strong system.
If some of my key people hang in there after the buy, then the buyer will really be happy. The buyer will be ecstatic if they can turn on the computer and have an easy automated system to track invoicing and receipts.
5. The buyer will want to own my clients.
He’ll want to know if my clients will stay or go. He’ll need to know if they are about to die or if they will continue to grow and need my services. The better and deeper the customer information, the higher the price the buyer will pay.
Okay, I’m not bailing anytime soon. I don’t want to freak out any clients and employees. I just wanted to make a point – I begin with the end in mind. The end will play out whenever and however God wants it to occur. I’ll just enjoy the ride until the next chapter begins. Start thinking about the next chapter today.