Nick Powills: Reimage Your Business Before Selling It

Even though it’s been advised many times, very few businesses start with the end in mind. Sure, some entrepreneurs or business owners say that, “Someday, I will sell this business for millions,” with a pinky finger raised and an optimistic grin. Even then, the plan is to get started, and then, maybe, implement a plan to get to three years if they’re lucky.

But, what happens when you think about the end in the beginning? Whether you are a franchisee, franchisor or a small business owner, doing so changes the way you run your business. For instance:

1. You may keep better files—like contracts.
2. You may write your contracts better—or, in a way that gets you to the most productive end.
3. You may pay your leadership team a little differently—with a mindset of keeping them in place post-exit.
4. You may file the right legal trademarks.
5. You may even seek the advice of someone who can help you sell at some point.

With the end in mind, you clearly run your business differently. You are constantly preparing for an amazing moment.

But, as I said, many don’t think this way. The end comes in a time of turbulence; thus, the buyer buys on the downward turn of the j-curve, looking to swallow up your business for a discount. They see a clear pathway to put points 1-5 in place, plus another 20.

The reality is, that you will exit your business at some point in time, whether you want to or not (till death really do us part). So, what do you want to do?

Think about what happens when you are considering selling a house. You paint it, you cut the grass and you fix the issues. Yet, in many businesses that are nearing an end, you invest the funds in floating to the finish line versus preparing it properly for a fruitful finish.

If you are starting a business, try to operationalize it for an exit at some point. If you are currently operating your business (and plan to for a while), put some fixes in place now so an exit doesn’t crush you. If you are in a position where the exit is looking bleak, do something about it. Paint the walls.

You have the choice, now or tomorrow, to reimage your business to set you up for the best possible outcome. Most of the time, the choice is to skimp on spending to preserve the cash for now – but it’s worth considering what making a little less now could mean for your chances of creating a beautiful thing tomorrow.

Reimage your business today and create higher wealth for tomorrow – no matter what stage you are in.