Author Mike Handelsman wrote an article for Inc. Magazine titled “Building a Small Business You Can Sell”. This is a critical topic for business owners and the writer makes a number of important observations.
In this next blog series, I will examine this topic and draw some remarks from his article. As the writer notes, he has encountered many entrepreneurs who believe that a successful business sale is pure luck – finding the right buyer at the right time. I would have to concur with him. In my own experience, many business owners have held that view. But a seasoned, veteran business person knows that luck has little to do with it.
Pursuing a strategy of finding the right buyer at the right time for the right price is a poor strategy and I advise business owners to avoid it and not become preoccupied with such a notion.
A much better strategy is one in which the business owner takes a proactive approach
to increase the value of the business
with the goal of having multiple bidders lining up to purchase it.
A business that demonstrates steady growth in sales and steady growth in earnings will have little problem attracting suitors ready to buy.
In our next few blog entries, I will discuss some key elements that buyers seek when considering purchasing a business. the next blog post is coming soon.