There are near-infinite reasons why people choose to build a business. In many cases, there will be multiple, overlapping reasons behind why people choose to embark on this journey, but one of the most common ideas in the back of business owners’ minds is the idea that they’ll sell their creation at some point in the future.
A lot of business founders and entrepreneurs focus on the more creative side of building the business in those early days, neglecting to get it sale-ready until absolutely necessary. We believe that this can be an inappropriate approach to take – here’s why.
1. Keep your documentation in order
One big benefit of building your business ready for sale from the outset is that it forces you to keep your documentation in order. This won’t just have a positive impact on the sale itself – it will have numerous other benefits on your ability to run the business before that as well.
You’ll be able to track your business’s growth more easily, identify potential financial issues early on, and navigate your annual taxes with ease. When it does come time to sell, you’ll find it much easier to show a business broker like Dexterity Partners what it is that you’re dealing with, likely resulting in a much quicker and smoother sale overall.
2. Build the business with value in mind
When building your business, it’s important that you have certain specific goals in mind at all times. However, it’s also important that you have overarching goals that help to provide direction more generally, helping you to take the business in a direction you’re happy with.
Building your business with its eventual sale in mind from the outset means that you’re more likely to build a valuable business. By constantly coming back to the question of how potential buyers will think about the decisions you’re making, you increase the chances that you’ll build something that’s valuable as a result.
3. Keep your options flexible
Lastly, while you might not think you’ll want to sell for a decade or so, you never know what might happen that could make you want to sell earlier. The market may experience a huge unexpected boom, you could want to move on to another exciting venture, or you may have a family emergency that requires both time and money.
By keeping your business ready for sale from the very beginning, you make it possible to keep your options flexible. You can seize opportunities or make a quick exit if necessary, without having to wait until you get everything in order – a process that can end up taking months and months. There are many other reasons why you should keep your business ready for sale from the get-go, but these are likely the most broadly convincing. Even if you can’t imagine selling your business, keeping it sale-ready will mean that it’s easier for you to run in the meantime, making your life easier and your business more successful as a result.
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