Where is your growth focus?
- Top line sales?
- Bottom line profit?
What about value?
We all need an Exit Strategy. We might not be working towards an Exit, but until eternal productive life is bestowed on Entrepreneurs and Business Owners, we must face up to the prospect of our business either ending or continuing without us.
To carry on without us, the business needs other people to want to be involved – either our successors or some third party who buys us out.
So, where are you building the value in your Business?
- Is it in YOU and your co-owners – and will they leave the business when you do?
You must avoid the trap of constantly running in the treadmill of winning the next order, delivering customer value, collecting cash and on to the next with no time to create exit value.
- An organised structure with a succession plan and with documented relationships, contracts, intellectual property – AND PROCESSES
o If you focus on building value you get the best exit.
o If you plan for the best exit, you get the best investor – if you go looking for one – or the best price if you look for funding on the open market.
o Value is not just about profit.
Value is about sustainable, recurring, growing profit – with solid intellectual property, contracts, customer relationships and business processes. It is not about the owner.
By Paul Fileman – Transmentum