Is your business an asset someone else would buy?
Take this quick test. Answer yes or no:
1. I handle most of the sales.
2. I write or review the proposals.
3. I know most of my clients by name.
4. In order to grow, I have to hire more people.
5. We’re profitable, but cash flow is inconsistent.
6. My name (or initials) is part of the company name.
7. Most of our revenue comes from custom services.
8. I do some of the work for high-profile customers.
9. The business has never run without me for a month.
10. We serve different types of customers and industries.
If you answer yes to more than 2 of these questions, most buyers would be reluctant to buy your business for a premium.
Every acquisition represents a risk to the buyer, and the amount of their offer reflects how much of a risk they consider it to be.
A “yes” to each of these represents a risk to a buyer.
That means it represents a risk to you as an owner.
If someone wouldn’t want to buy your business, why would you want to own it?
You can change your situation starting today.
Begin to think of yourself as an investor in your business and focus on turning your business into a valuable asset.
Entrepreneurs want both freedom and security, and the best way to get that is to make sure your business is an asset someone else would want to buy.
Even if you never plan to sell.