Business owners are often wrapped up in its day-to-day running because it is something they have put their heart and soul into.
However, this devotion and dedication can be a disadvantage when it comes to selling a business.
Research from Business Partnership’s Value Builder Score survey reveals that companies able to perform well over a three month period, without the owner present, are 50 per cent more likely to receive an acquisition offer than companies which suffer when the owner is not there.
What should owners do to avoid this situation? Firstly, they need to know why this is often the case.
Having an absent owner forces companies to develop processes and procedures which are in turn more likely to give staff the confidence to deal with issues on their own.
In short, it gives the business a self-sufficiency that is likely to be more attractive to potential buyers.
So how does a business owner start to relinquish direct control? Let’s consider the most pleasant option – a holiday.
A lengthy break without any company involvement will test how well the business runs without the owner’s involvement. In fact, the holiday might well be worth the fire-fighting afterwards because it can highlight weaknesses and potential strengths in the business structure which can then be worked on.
The key is to optimise sellability and making a company more independent of its owner is a major part of this.
Hub and Spoke (Your Business Without You) is one of eight key drivers of your Value Builder Score.
The Value Builder Score is a survey of more than 20,000 businesses measuring the finances, opportunities and risks associated with their business, and the offers they have received.
Business Partnership uses the Value Builder System to help you increase the value of your business by up to 67 per cent.