Businesses that operate seamlessly whether the owner is there or not sell fast but also sell at a premium price. Find out how to create an exit strategy and prepare your business to run without you.
Key Takeaways
Creating a business that can run without you is an excellent exit strategy that ensures the continuity of your organization
A self-sufficient business sells fast on the market and often has a better valuation than its counterparts
This makes it essential to have a self-running business as part of your exit strategy
Figure out your business goals and why you want a self-running business before setting up the exit strategy
Delegating most of your tasks can help you build a business that runs without you
Be sure to communicate to your team any new changes and address their concerns
You may also want to adopt technology that can help you automate your business tasks
Wouldn’t it be great if you could take a two-week or even two-month break from running your business? Many business owners know too well that they won’t have a company to go back to if they took a long break from their business. But on the other hand, entrepreneurs like Richard Branson seem to have mastered the art of running self-sufficient businesses. You will often see them skiing or mountain climbing abroad with their families and friends.
If you tried to take that kind of vacation, could you enjoy it? Or would you be barraged with hundreds of phone calls from your staff, inquiries from suppliers, and questions from your clients?
This is why you need to build a self-sufficient business that can run without you. To do that, you have to rely on other competent leaders that understand your business and can help you achieve your vision. But as simple as that theory may sound, doing the actual thing can be hard to pull off.
Why do you need a self-sufficient business?
Truth be told, if you’ve built your business over a decade or two, chances are that your company is dependent on you. No one is saying that you shouldn’t enjoy working in your company, but you should also enjoy vacations without your employees blowing up your phone. Besides, there are other reasons why you should make your business self-sufficient. These include:
They sell fast: Businesses that can run without the owner often sell fast. You may have a profitable business, but diligent buyers will be skeptical if you have to be present for the business to run. A self-sufficient business will sell like a hot cake as business owners love companies that can run by themselves.
Better valuation: Buyers will often pay top dollar if you can demonstrate that your business can run without you. Having some great leaders on your team can help you achieve your vision of a self-sufficient business. Just ensure that everyone in the company understands and is committed to your firm’s goals.
More offers: Running a self-sufficient business will get you more offers than you can imagine. This is important when choosing an exit strategy. Remember that money is not the only consideration when looking to sell your business, you also want a buyer that will ensure the continuity of your business. With lots of offers to choose from, you can decide the best person to succeed you.
How to create the perfect exit strategy
One thing to keep in mind when building your business is that you may have to sell it someday. This is why it is important to create an exit strategy months or even years before you think of selling your company. Here are five steps to take when creating your exit strategy:
1. Know your end goals: What do you value most? Is it time, money, or the freedom to travel around the world? If you know what you truly want, you can build a self-sufficient business framework that will ensure everything runs smoothly even when you are enjoying the sandy beaches in Europe. Figure out what you want from your business so you can set it up to run without you.
2. Always delegate: If you take a close look at all the work that you do in your business, chances are that you have encroached on other people’s roles. Many business owners prefer being hands-on, and this makes them work in almost all departments of their business. But this is why you should always delegate as many tasks as possible. Write down all the tasks you have and find ways you can delegate them. Remember: You pay your employees for a reason, and everyone should do their work.
3. Take a step back: It is not uncommon to feel like you need to control everything in your business. You may notice some failures occur once in a while as you seek to make your business self-sufficient. Kill the urge to jump into everything that is not going as well as you wish. Instead, you can use this opportunity to guide and lead your team in the right direction. You may also want to take some work breaks or mini-vacations just to test if your business can run by itself.
4. Embrace new technology: Using technology allows you to automate key tasks that normally take time to accomplish. Always be on the lookout for technology such as CRMs that can simplify how you work. What’s more? You can now create a remote team made up of people from different parts of the world. Technology will allow you to control your business even when you are on the other side of the globe.
5. Communicate to your team: It is important to let your team know that you are looking to exit from the company. Of course, this may cause some jitters at first, but be sure to address any concerns that your staff have. You should also assure them that their interests will be taken care of even when you are not around.
SF&P Advisors can help you streamline your business operations
Businesses that can run by themselves are attractive to both financiers and buyers. You should always strive to create a self-sufficient business if you want buyers to give you a premium offer. One way to do that is by getting professionals by your side who can help streamline your business operations. SF&P Advisors has a talented team that will work round the clock to ensure that you have the perfect exit strategy months before you decide to sell your business. Contact us for a free consultation.