In our 5 part series on creating a company that is easily marketable to many buyers we have uncovered the major flaw in the small business of today: the ME business owner, the one who everyone (or almost everyone) and everything (or almost everything) must run through.
I worked with a business owner recently who was looking to sell his business. He had run his company for several decades and had been successful. He had a staff of 7 employees. He had built the company from nothing to a sizable entity in his field. He purchased their business’s property, funded a retirement plan, held many assets, yet the business had a flaw, a very large flaw for any ready, willing and financially capable buyer, he was a ME business owner. Each buyer reviewed the business history, financials and growth opportunity and was impressed, yet they could not purchase the business because it was not sellable. The owner was a ME business owner and everything ran through him. In order to transfer the business we needed to create a business that was FIT to SELL, we needed to focus on developing a team, grooming talent, implementing specific processes and procedures so that another party could successfully take over the business.
The first step was to analyze the business and assist in developing the SYSTEMS (see part 3 of our series). Once the systems were in place our attention turned to moving from the ME owner to team members. What skills, tools and knowledge were needed to execute those areas of the business? Next, we needed to look at their existing staff and determine who could be trusted with greater responsibility and trained to take on an advanced role in the company. After a detailed analysis of the team (questionnaires, rankings, interviews, to name a few items), individuals were identified that could assist in creating a reliable team. Other areas of the ME owner’s responsibilities were outside of the current staff’s capabilities and a search needed to be done to hire the correct team member to ensure the development of the business into a FIT to SELL company. It wasn’t easy and there were many moments when the OLD ME business owner wanted to jump in and FIX the item of the moment, but with time and coaching he emerged into a company FIT to SELL.
Call Brent 480-250-6559 or via email email@example.com, to get detailed assistance in building, streamlining and developing your business to the point of being FIT to SELL.
Brent is the Founder of BounceU a children’s entertainment franchise system, entrepreneur, Certified Public Accountant licensed in CA and Business Broker in the Phoenix area. He resides in Gilbert, Arizona with his wife and children. Brent is an avid cyclist and outdoor enthusiast.