Removing Yourself From Your Business
Removing Yourself from Your Business
Many business owners are rightfully proud of their dedication to company and clientele. What they don’t always realize, however, is that once they’re ready to exit, heavy owner involvement is the last thing a prospective buyer wants to see.
As your business matures, the more involved you remain – and the more your employees and customers depend on you – the less value your company holds. Here’s why:
- Your continued involvement translates into greater risk for potential buyers because they can’t be certain what will happen to customers and cash flow once you leave.
- Many buyers are looking for turn-key businesses that don’t require their day-to-day involvement in order to continue to grow.
The bottom line is that your business should be capable of running without you. So, how do you guide it in that direction?
First, you’ll need to have grown to the point where you can afford to bring in a supervisor or management team. This will take an investment in both time and money to achieve the proper results. Finally, you’ll need to work with your team to implement processes that increase efficiency and make it possible for you to step away from day-to-day operations.
Sellers who distance themselves from their businesses create greater value for buyers. Not only does it demonstrate that a good management team and effective procedures are in place, documenting the results of those systems generates proof that you, the owner, can work more on the business, as opposed to working in the business.
