Last week I was answering member’s questions in our Inner Circle, and when I came across this question, I stopped in my tracks.
“What if my ultimate goal was to sell my business? What boxes does my business need to check in order to be attractive to a buyer?”
And if you know me at all, you know that this is my thing.
I’ve grown and sold 2 businesses, and my plan is to do it again.
But when I created my response, I realized that my advice is good for everyone.
It’s not just for people who might sell one day. Nope
It’s for every single one of us. And there’s one good reason to do these 3 things.
It will help you sleep better at night for sure. But really, it could save your bacon if disaster strikes.
Listen in and get started today.
If you prefer to read, here’s the short version:
1) Show the Buyer how they’ll make money
Demonstrate that your business provides you a paycheque and profit.
These are two different things. As small business owners, we often treat them as one thing.
A paycheque is for the person who takes on your role. It could be the buyer, or it could be someone they hire.
A profit is how the buyer will see that they can make a return on their investment.
The way you do this is by cleaning up your accounting now.
→ remove any ‘questionable expenses (think cellphones, entertainment, car payments).
→ instead, give yourself a raise to cover the cost of these items, and submit an expense claim for mileage and any other business expenses you’ve paid personally.
The reason you’ll do this is for you to show the true income you receive from the business, and the real cost of running the business. You’ll be able to see the profit, and your buyer will too.
Do this, and you’ll do a lot less explaining!
2) Demonstrate the value in a clear and simple way
Start tracking your metrics today.
Use a simple spreadsheet, and at the end of each week, record your sales, your conversion rate, and your average order value.
Make a note about the marketing activity you did, so anyone who looks at your sheet will see your growth over time, and will have an idea of how you’re marketing the business.
3) Get it out of your head and onto a Doc
Start documenting all the things you do that someone else will need to know in order to do your job.
Organize documents in folders:
Over time, you’ll develop a habit of recording information that will allow you to hand over the reins to an employee or a potential buyer, and you’ll both feel confident that the business will thrive.
If you have questions, comment below and ask me!
So, here’s what I need you to do next.
First, sign up to get updates in your inbox:
Then, be sure to Like and Follow my page on Facebook. I’ll be posting regular updates there!
That’s it! It will be a fun adventure, all the way from 0 to $50K on Shopify!
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