In this episode we lay out how to build a valuable business that you may choose to sell down the road. #exitstrategy #entrepreneurship #businessplan #systemization
It is okay to start a company with the goal of selling the company. I think you should start everything knowing that you can sell it and then if you don’t sell it, GREAT, but you built it in such a way that it has value that other people would be interested in it. That’s why I always tell you, keep good records. Don’t run a cash business. If you can trace it, you can sell it. If you can’t trace the revenue, you will have a hard time selling it.
So how do we take it from idea to cash for the exit?
Every Business Starts with an Idea
Build a list of ideas that you can test.
Vet the Idea/Beta Test
You have to prove to yourself and to investors, partners, and even yourself, that your idea will work. Very few businesses have venture capital and things of that nature, but you may bring on a family member to support it or a friend who wants to support it. You have to vet it. You need to convince yourself that it’s a winner and you do that by just selling your product/service at a micro level or maybe doing a pre-sale. Whatever it takes.
Create a Business Plan/Strategy
You can do this part out of order with the vetting process a bit, but this is where you lay out a strategic plan for your business. Some questions to ask here are how do you intend to market? Who is your competition and how do you differentiate?
Launch It
Launch the business
Grow it for 5 years
Showing that it has profitability. Show that you have the business systematized. You want to be a system-centric company, not an owner-centric one.
Sell the Business
You’ve proven the concept, grown consistently for 5 years and create systems that make business repeatable and efficient.
List it with a broker and sell it!
