To provide a means of earning a living and to provide for my financial future and that of my dependents.When we start in business we are often only concerned about the income generating aspect but there comes a time when we entertain thoughts about the future of the business.Have I got a succession plan?To whom will I pass on the business?Is my business saleable?
If we are intent on selling the business we need to begin to plan for the sale.This may take some years to achieve if we want to maximise its value.There are three stages involved
Build a robust new business modelWe need to continue to retain customers and we also need to have a clearly defined system that is designed to attract new business from existing customers and also new customers.We need to ensure that we have optimised our inputs to maximise our margins.Quality control assurance issues need to be addressed.Waste issues in the business need to be addressed
You need to engage in strategic planning to underpin the growth plan for the buisness
Reduce reliance on the business owner.The goodwill of the business is only valuable if it can transfer easily.Lessening the reliance on the business owner will assist in this.Build management capability within the teamGive responsibilities to members of the team and hold them accountable.
Enhance the brand in the minds of the customers and the potential customers.Keep it fresh.
Get the business in good financial condition.Lean and fit.Good management of stock, debtors and cash balances.Reduce debt.
The business owner is likely to be the best person to know the market and the likely interested parties.Need to identify to whom it is most likely to suit and why.
Don’t negotiate for yourself. – Stay in touch withy the process but don’t get involved – it’s too personal.
Be aware of the risks. – what could go wrong?Be aware of timing issues.Make sure your business is not reliant on any one key person – product – customer – technology Make sure you have adequate and appropriate insuranceHave a fall back plan if the sale doesn’t happen – pension
Review the stages
Building Your Business Towards Your Objectives
Building Your BusinessTowards Your Objectives 8 December 2011