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Whether you’re planning to sell your company sometime soon or in the future, now is the time to ensure that your business isn’t all about you.
From the latest Sellability Score* research involving 2,300 companies from around the globe, here are two key factors that are linked to the probability of getting an offer for your business when it comes time to sell.
If you were out of action for three months and unable to work, would your business keep running smoothly? The more your staff and customers rely on you, the less valuable your company will be to a potential buyer.
One good way to start making your business more independent is to begin by spending less time at the office. Start by not working evenings or weekends, and don’t reply if employees call. Once they get the picture the best ones will start making more decisions independently. The shift will also expose your weakest employees, the ones that need training or need to find another job.
As for you, it might come as a shock to find out how much your business has become such an essential part of your life – but if you’re going to sell your business one day, you need to look at it as an inanimate economic engine, not as something that defines who you are.
If you don’t have a management team, hiring a 2IC is a good first move. A second-in-command can help you to balance the demands of running your business and advance your targeted exit time.
Here’s a four-step plan for hiring a 2IC:
1. Identify an Internal Candidate:
Internal candidates have a strong tendency to outperform external leaders.
2. Give your IC Prospect/s a Project:
Giving candidates a project allows them to display their leadership skills to you and your team.
3. Communicate Why the New 2IC was the Chosen Candidate:
If you pick an internal candidate, explain this decision to the rest of the team. Make sure you explain to other candidates that you still value their contribution.
4. Shift from Manager to Coach:
Ask more questions and spend more time listening and less time directing people.
Please contact Altitude Advisory to take a quick questionnaire to discover how saleable your business is.
*The Sellability Score is a cloud based software tool that allows a business owner to assess the ‘sellability’ of their business. The researchers at The Sellability Score analyse the data from 2,300 companies from all over the world in order to understand trends in the business market with a special focus on the liquidity of privately held businesses.
Rodney Quinn, Quinn Transport
Phillip Cross, Royce Cross Agencies