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Dave’s book on exits. See http:\/\/www.berkus.com\/shop\/ or amazon for this and more from Dave<\/p><\/div>\n
business, knowing that the end game value of your client or patient list is small and not easily transferred to any buyer without attrition.\u00a0 In such a case, there is little advice here unless you think outside of your day-to-day profession and create a valuable leave-behind encasing your knowledge and experience that can be replicated and scaled to a large business \u2013 even if by others.<\/p>\n
Is your business one that may be sold for profit someday?<\/strong><\/p>\n Most businesses fall into the class of those that can be sold someday to a willing buyer.\u00a0 Even small community service-providers can be sold to buyers hungry to get into a business already in revenue with a steady customer base.\u00a0 And many businesses are created with the express purpose of growing them in size and attractiveness to be ready to sell someday to create some degree of wealth for the shareholders.<\/p>\n What if you\u2019ve taken outside investors over the years?<\/strong><\/p>\n Accepting venture or angel money is to create a contract between the investors and the entrepreneur that the business will someday be sold or even go public to create an exit for the investors.<\/p>\n [Email readers, continue here…]<\/em><\/span> All businesses and their management should be aware and perhaps planning for the end game, and that includes boards of directors as well. It starts with each early step in the process of building the enterprise.<\/p>\n What creates value in a business?\u00a0 <\/strong><\/p>\n Is your value proposition for an eventual buyer that you have some secret sauce that allows you to compete more effectively against competition?\u00a0 Do you already dominate a niche, no matter how small, that a buyer will someday want for itself?\u00a0 Do you have intellectual property that is valuable to you but might be more so to a buyer?<\/p>\n These questions are just a few that I\u2019d ask during strategic planning sessions each year to fine tune the value proposition for an eventual buyer.\u00a0 And I\u2019d go further.\u00a0 Investments into the company, whether from new money or reinvesting profits, should be directed first into areas that will increase the value of the enterprise at the end game.\u00a0 You do this for yourself and your shareholders, and you should be thinking of this regularly.<\/p>\n","protected":false},"excerpt":{"rendered":" Ever think about growing your business with the plan to sell it someday, cashing in on your hard-earned work over the years? \u00a0Or if you\u2019re an employee with stock options, are you aware of the increases in value you can … Continue reading