As a serial entrepreneur who has started and sold 6 technology companies, I have learned a few things over the years. The lessons I learned, and stay with me the most, are from mistakes that I made. For example, I did not have all my ducks in a row and did not have a well-defined exit strategy when I sold one of my companies. As a result, I know I left significant dollars on the table at the closing. These lessons inspired me to start 4 Pillar Coaching so I can pay it forward to other business owners facing similar challenges. The Scaling Up method, which is what I implement for clients, offers great tools to ultimately execute your exit strategy. The exit strategy should be top of mind from the onset of creating the company, even if you plan to shut it down one day or leave it to your family.
Potential buyers of your business will take a holistic look at your company. They will scrutinize every detail including your financials, processes, executive team and employees, contracts, and more. To put it bluntly, you will get more money for a company that is profitable and runs well without you being involved. This is where Scaling Up comes into the picture. How so? Well, the Scaling Up process focuses on four key areas that are important to buyers:
When each of these four key areas is addressed and running as it should, your business will be much more attractive to potential buyers. And, obviously, the more attractive, the higher the price they will be willing to pay.
All business owners should operate with an endgame in mind. Therefore, it is essential to think about your exit strategy while you run the business. When you lose sight of the end, you may put yourself in a less-than-desirable bargaining position when the time comes. So, start today.
And you will find that the Scaling Up process will not only help with your exit strategy and maximize your company’s value, but it will also make your business run better every day. You will see more productivity and profits while reducing stress, drama, and many of the other headaches that come with running a business.
One of the best things you can do is to find your Rembrandt in the Attic. Every company has something special about them, its process, or just that X-Factor. Strategic buyers will pay much, much more for a company with this special sauce or a Rembrandt in the attic.
Another goal of the Scaling Up process is to scale your business by 10x. The x depends on the business owners and their goals. It is usually financial-related such as increasing revenue or profits by 10x. Why not add a third financial x – getting 10x more for the business when you sell it?
Don’t make the same mistake I made. Position your business to get the maximum value that you can. The investment into getting your company in order will help get the payday that you deserve. On the other hand, failure to do might make you settle for less than you deserve.
I am here to help you. Let’s schedule a call to see how the Scaling Up process can help with your exit strategy.