Calling it Quits

 Any one that has gone into business is surely doing so in hopes that it will be extremely profitable at some point. At the end of the day a business is an investment and investments get sold every day.  Unfortunately for many business owners this becomes reality at the worst of times. Now businesses are sold for various reasons and I’m sure that everyone can name the worst of them. The truth is that sometimes a better opportunity presents itself and it comes right down to what is best for business. Either way, when the day comes the objective is to get as much return on your investment as possible, plain and simple. 

That’s right, for most business owners there is the reality that the business will one day come to an end. How that day goes will depend on how many of these three things can be brought to the bargaining table. With the right preparation this can be an easy thing to accomplish, saving time and energy for everyone involved. 

Growth (Past) 

Giving records of sustained growth is simply not enough. All instances of documented growth should include the factors that contributed to that growth. This not only lends credibility to those fine financial statements but also reinforces the viability of the business model.  

Consistency (Present) 

Every business will experience some ups and downs. However it is important to show out how profitable the business can be when the right factors are in harmony. For some it might be a combination of Leadership, marketing, and operations. Whatever the factors might be, providing detailed records of the business functioning at an optimal level and having it currently doing so, will showcase your businesses muscle. 

Potential (Future) 

This will require you use Bulldog Rule for Business #12 Be aware of your entire business. Having an intimate knowledge of your customer base and the opportunities there to include proposed actions to tap those opportunities is potential.  

 Yes your accountant can provide evidence enough, but they can’t sell your business for you. Financial statements give an overview of the life of the business, but thorough records provide all the details potential buyers are looking for. Invest in a Business Consultant to assist with creating a system and finding the tools needed to properly document the performance of your business. When the time comes to move on be prepared, and make a difficult process into one that mutually benefits both parties. 

This entry was posted on 7. April 2009 at 11:36 and is filed under Being the Boss, Saving Money, Making Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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