25 Jun Create Business Value While You Plan Your Life
One of the first questions any buyer of a business will ask is “How dependent is this business on its current owner for its success?” By creating a business that can operate successfully without its owner, you create a business that is even more attractive to potential future buyers of your business.
While owners of most start-ups and small businesses will say they have enough on their plate dealing with operational, financial and employee issues occurring today, they should always keep in mind that someday they will leave their business, voluntarily or otherwise…and whether that transition is somewhere down the short or long road, the actions taken today to preserve and create business value will chart the course for a lucrative tomorrow.
What creates and builds value? For many closely held business owners, there are standard procedures to follow, called value drivers that will build business value and business independence.
It is time to begin working on your business and create a business which creates real value for itself. Owners can go to work on their business and create a company which will succeed with the owner’s minimal involvement. You now have a business that has real value to the owner as well as outsiders.
Take a look from the outside looking in and ask yourself…is this the type of business I would invest in?
The time spent now to preserve and increase your company’s value will pay off… in both the short and the long run.