Selling A Business? The Bus & Boat Analogy You Must Read
Mike Finger takes a look at the difference between building a business that is highly successfully and … building a business that will appeal to buyers and generate the best price.
And, no, they are not the same thing. Or, as Mike points out, when you drive your bus to the shore of the exit process you’ll find that your bus is highly inadequate for the journey ahead. And you find you need a boat!
It’s quite simple, but it’s one of the hardest lessons I’ve ever learned.
From behind the wheel as we “run the business”, everything looks reasonable. We ride the bumpy road with good days and bad, but we move along. Then we reach the “sell the business” ocean – and it becomes painfully clear that what we have isn’t going to float.
The data shows that most small businesses are unsellable – and most small business owners don’t know that (I know I didn’t). The fact that we’ve decided to “sell the business” doesn’t change the data – or the business.
So can you convert your business to one that appeals to buyers? How? Mike addresses this, too, and he’s honest about the fact that changing a business to prepare it for sale is more difficult than growing the business in the first place! And that you need to start early. If you wait to the point when you want to sell then, er, the ship has sailed.