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“My business used to be
bigger but control was difficult so I cut back.”
“My customers expect personal service so I can't replace myself.”
“I know someone who nearly lost everything because of unreliable staff.”
These are just a few of the
arguments against business growth.
Here is something else to consider. What do you want your business to do
for you? Provide you with an income certainly. Wouldn't you also like it
to provide for your future?
In order to have even an
basic lifestyle in your retirement you have to accumulate income
producing assets or savings. One million dollars worth is a conservative
MINIMUM. This means investing - in shares, property, superannuation etc.
Of the hundreds of businesses that we have surveyed, the overwhelming
majority say they have no excess income for investments. But what about
your own business as an investment?
Your business is one of the
only investments that can provide you with enough income to live on now
(in the form of profits) AND a significant asset you can turn into cash
at retirement. How much different would your future be if you could sell
your business and have it contribute 30-50% (or more?) to your nest egg?
But how do you get the price you want?
First and foremost you should start planning NOW.
If you wait too long you
could find yourself burnt out and in a downward spiral of waning
enthusiasm, unmotivated staff, reduced profits, and you working in the
business because you can't pay more staff. Don't let this happen.
The three key things that make a business attractive to buyers and
therefore impact on the sale price are these.
1. It must be
profitable.
2. It must be growing and have capacity for even more growth.
3. It must operate without the owner(s) working in it.
The secrets to success lie
in using systems to run the whole business - so you don't have to.
Marketing and sales systems, operational systems, employee systems and
financial systems.
If you build a business NOW that runs profitably without you, you will
have a number of choices. You could sell it, you could keep the business
and live comfortably from the profits, you could expand by opening more
outlets or you could invest in another business or in other ventures.
This article was written by our Business
Advisor, Karen MacLeod.
Click Here to learn how Karen can improve your business.
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Dear
Friends,
