You may be an architect or doctor or other professional managing your 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
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.\u00a0 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…]\u00a0 <\/span><\/em>This insight covers all businesses and their management when thinking of the end game, as management should during each step in the process of building the enterprise.\u00a0<\/p>\n What creates value in a business?\u00a0 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?\u00a0 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 should be thinking of this regularly.<\/p>\n","protected":false},"excerpt":{"rendered":" You may be an architect or doctor or other professional managing your 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, … Continue reading