Business Succession or Exit

Sellability Driver 2 of 8: Growth Potential

Sellability-Driver-2-of-8--Growth-Potential
The second driver emphasises the value of the company, not limited to it as a past business but what it will become in the future.

Video Transcript:

The second driver of sellability is growth potential. So all the business owners, when they think about their business they wanna value them, whatt they’ve done in the past. We’re proud of what we’ve done in the past that’s normal. The fact that you’ve won an association award for example, or that you’ve got a 20-year business, or that you’re recognised for your reliability. Whatever you think that you’ve done in the past. And the hard truth of it is that when the buyer comes in, they’re not buying the past, they’re not buying what you’ve done. They’re really only buying one thing, and that is they’re buying your future stream of profits. What is this business gonna do in the future, for you it’s the end of the game it’s the finishing line, for them it’s the start. It’s a different frame on the line. And so for them, what can this business do in the future? so to drive up your score on growth potential you really wanna make the case and focus on what is the future potential of this business, can it operate in a different market? Let’s say, you’ve been successful in market A, is it possible to scale this into market B, C, and D ? Could you cross sell additional products and services to your existing customer base? Are there ways that this could work in different cultural markets? All the ways that you could significantly scale up the business, the answers to those questions is gonna drive up your growth potential.

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