You know it’s time to get rid of the business, that is sell the business and either move on or step aside for a management team if you can’t grow as a leader or you won’t grow as a leader.
One of the immutable laws in business is that the business will never outgrow its leader (owner). If you are a business owner looking to sell in the next few years, ignore this law at your own peril!
You can see this in the media, when a public company stops growing they change its CEO, the investors know this law, because the share price usually jumps.
I meet many business owners who are only a few years out from “retirement” and exiting the business simply “run out of steam” with the finish line in sight. Sometimes the owner wants to change pace and just cruise across the finish line.
Lack of growth and dynamics in your business will affect its desirability and valuation. This is one of the key issues facing many business owners holding out “just a few more years”. Furthermore what I have seen in many cases the mental and physical health of the owner deteriorates in this stale environment as well.
Business is all about growth and when its leader stops growing, so does the business. It’s easy to spot as an outsider; it shows up in numbers as well as the rest of the business. The only person who fails to see it is in fact the owner. This tells a story to any prospective buyer and not a good one if you expect to get top price for your business sale.
Now by growth I mean professional and mindset development. Albert Einstein once said “We cannot solve our problems with the same thinking we used when we created them” and mindset challenges are no different. You are going to need some new information and actions to expand your thinking.
Here are a few quick actions to get you and your business moving with some speed if you are in this situation?
- Complete the Sellability Questionnaire. It’s not just about selling your business but about identifying areas of your business to optimise. The report is delivered in a 22 page report, which will identify areas which need some work.
- Brainstorm this report with your key team for not more than a couple of hours. Create a written action list of items with accountabilities and time lines (who will do what, by when) and keep this list in a visible place. Chances are together you can solve any sticking point in the business.
- Get a Coach, Mentor, or accountability person…Seriously! (see the Albert Einstein quote above)
- Ultimately any action, or change will get you a result, however the more focused the actions the more focused the results.