Many entrepreneurs start their business with the eventual hope that they will cash out for millions. But, unfortunately, most never do. Fortunately, by following this simple, two-step plan, you can.
1. Determine the Value You Will Build
Most companies only focus on two things – increasing revenues and growing profits. While these two things are important to future acquirers, there are many other things that they also value. Such as the products and services you have built, intellectual property you’ve developed, your customer base, and your team and the skills you have taught them.
Importantly, you need to think through why someone might want to buy your business, and what assets they would value the most. And then build these assets.
2. Systematize Your Business
As a general rule of thumb, nobody will buy your business if you can’t run without you. Why would they if the value of your business deteriorates the second you leave?
The solution is to systematize your business, using these steps. Start by identifying all the processes your business performs. Next, document how each process should be performed. For example, when someone calls your business, who should answer the phone, what should they say, and how should they respond to the 10 most common questions.
While documenting these processes is real work, it will revolutionize your business. In the short-term, it will give you ideas on how to improve operations. Longer-term, the documents and processes will help train and guide new employees, and allow them to expertly perform their jobs without your assistance. So you can focus on growing the business, and attracting the company who will pay millions since you have built valuable assets and a business that can thrive without you.