The best way to approach this is with your buyer’s hat on. It is difficult to be this critical, but worth the effort. Would you want to buy your business? No, really: would you? Even though you aren’t prepared to be critical of your business, potential buyers surely will be.
A good way to approach this is to consider various key aspects of your business. Chinook offers a free tool to do just that. Refer to the pages called Understanding Value Drivers and Value Builder Score.
A few of these key aspects to consider are:
- How important are you to the success of your business (less is more)?
- How diverse is your client base?
- Are your processes and procedures documented?
- Do you have a business plan? Is it in writing?
- How redundant is your supply chain?
- How would you do if you lost your best employee?
- How quickly are you getting paid? Are you always chasing money?
We don’t know what life will bring us. At Chinook, we believe you should always be ready to sell. A business that is ready to sell is also a joy to own. It is profitable, easy to run, and ready to withstand the vagaries of being in business.