Build a Business That’s Worth Something
What is the ultimate goal of your business? Pass it on to your family some day? Sell it to the highest bidder? Provide you with a comfortable lifestyle? To challenge and push yourself? My experience tells me that no matter which of these is your ultimate goal, viewing your business with an exit strategy in mind will help you get there.
Do you want to grow your business? If not, you might consider whether your successor will or not. This person might be most interested in a scalable business, and will be willing to pay a premium for it. With that in mind, it can only help to start building your business processes, sales systems, and human resources in a scalable manner. How easily could your business double? If it would likely cause your company to implode, you might not be an attractive acquisition target.
But what if you don’t want to be acquired? Surely you still want the business to reach its greatest profit potential. Building streamlined processes and systems not only makes your company more attractive to acquirers, it also makes the business more valuable and more profitable today. The means to achieve these ends are often the same.
Most business owners will continue doing things the way they always have. Both internally and externally. They will go after the same customers and the same markets, and produce the same way they always have. Those businesses that understand that the same old stuff won’t work forever, those are the ones that will succeed.
Think of your business in terms of scale, growth, and value. What can you do to make your business extremely valuable? What do you need to change or add to your business to move past your current state? Do that.
About Gateway CFO Solutions, LLC:
Based in St. Louis, Gateway CFO Solutions helps small businesses grow profits and revenues, and bring peace of mind to their company’s financial picture through part-time CFO services. Many small business owners are without a trusted advisor for the financial side of their business, and they have seemingly few resources to turn to for expert guidance. We provide that guidance and act as a trusted, strategic advisor for our clients. We provide both broad, global planning and “roll up the sleeves” technical services.