Written By Strategic Advisor Kevin Lemasters
Whether you plan to sell your business or not, you should always have your business prepared to sell. We are not promised tomorrow. If you have a family and they are not involved in the business, having things in order ensures they are taken care of as your business is in a place to bring the value you want. It doesn’t matter if your business is large or small, people are impacted if or when a change happens.
Here are five things I think every business owner should consider.
- Have a good accountant. You may have someone handling the day to day books but have an accountant that understands your business and knows the financial health of your business.
- Have a good attorney. Whether you have needed to use one or not, have the conversation about what happens with the business if you are no longer there. Have the proper documents put together that protect the business and your family.
- Know what your business is worth. Have a valuation or visit with other owners in your industry who may have the experience to help you understand what that number looks like and what factors you need to consider maximizing your business.
- Run your business as if you were selling tomorrow. This ensures that you are always looking at the things that matter. If you are intentional about this, you will know where your opportunities are and can make adjustments as needed. In the valuation process, you learned what matters to a buyer. Focus on getting those key indicators where they should be and keep them there.
- Communicate to someone what your plans are and what you’re doing to get there. If you have a business partner, it should be them. Also, your spouse, if that applies as well. If neither, find a mentor or businessperson you trust to share what your plans are. Good leaders have this person and count on them as a peer advisor, mentor or just a solid accountability partner. Your attorney will have the documents but having someone you trust to take care of things if you aren’t there ensures your interests are taken care of.
Many business owners haven’t planned for their retirement or worse a disaster that may leave them unable to run their business. When you’ve invested your life into the business, you owe it to yourself to be ready for anything that life throws at you.