Can Taking a Break Make Your Business Sellable?
We have all encountered people who can’t let go of their business, even when they’re supposedly having a day off. You might even be one of them. Business owners often feel close to the company they have personally built, and this translates into an intimate day-to-day involvement in various aspects of it. But can there be too much personal involvement?
Uscita Solutions’ Value Builder Score survey has come up with figures that prove that if a businesses can run without its owners it is 50 per cent more likely to find a buyer. So if you are running your own business but you have got designs on selling it on, your ability to do this may well depend on how closely involved you are in running it.
Potentially, it is a tough call as there are egos involved. The more impartially-administrated the workings of a business are, the more attractive it is going to be for an outside party to it to take it over. So if you’re in the position of wanting to sell your business, how do you get an idea of how well it can run without you?
Take a holiday
A holiday is the perfect opportunity to recharge your own batteries while finding out how well your business copes without you. Think of it as a controlled experiment: you don’t have to go away for long, just long enough to see what happens.
Don’t pack your laptop, and keep your phone switched off when you’re there.
When you get back what will you find? Hopefully your employees will have had to find ways of dealing with issues otherwise resolved by you. But there could be a big pile of things for you to do in your in-box.
You should treat this as a useful illustration of what systems, processes and procedures you will have to put in place in order to get things running smoothly without you.
There may need to be better authority for employees to sort things like payments, ordering, etc. Have you got proper customer service processes established that don’t rely on your personal intervention? Are you clear who is delegated with what tasks?
These are all key issues when preparing a business for sale, to increase its Value Builder Score. Make the necessary adjustments, and next time take a longer break.
Uscita Solutions have produced a guide which covers the issues highlighted in this article along with 7 other key drivers that can improve the value of your business. To download your free copy of this guide, please click on the link below;