Is your business attractive to a potential buyer?
What would you look for if you were interested in purchasing a business?
If you think of it from the buyer’s standpoint it can make it easier for you to understand how you need to build your own business to be attractive to future potential buyers.
#1 If you were no longer there, could the business run successfully without you? If the business needs you to run successfully, it is much less attractive to a buyer.
#2 What amount of ongoing income could a potential buyer expect from the business without them putting any additional money or effort into it? The more automatic reoccurring revenue the business produces, the greater value to a buyer.
Although as business owners we take pride in our ability to make the business work, that is not the way to grow a business when you have a goal of selling it in the future.
Think about what you can do to build a business that is attractive to potential buyers and don’t be afraid to build the business in a way that it is not reliant on you being in it for it to continue to be successful.