Time to Sell the Business and Sip Cocktails into the Sunset?
There is very good reason to build your business with the intent to sell.
This post will explain how and why.
***Pre-Note: The world is full of money. Every day, somewhere between $15 T to $20 Trillion are transacted around the world. Therefore, it's important to remember that people buy businesses worth $10M to $100M on a regular basis. There is no shortage of money in this world.
When you build a business with the intent to sell, you're not just launching another company—you're creating an asset that’s valuable from the ground up. This shift in mindset, from just “building to grow” to “building to sell,” forces you to think differently and more strategically about every move you make.
Here’s why this approach can help you build a business that is an asset worth millions:
1. Business Focus: When you know you’re aiming for a sale, you start with the end in mind. Every decision gets scrutinized through the lens of what will maximize your business’s value. You become laser-focused on what really matters—scalability, profitability, and sustainability.
2. Smooth Operations: If your business is going to attract buyers, it needs to run like a well-oiled machine without you having to be there every minute. This pushes you to develop solid systems, processes, and a management team that can stand on its own. Not only does this make your business more attractive to buyers, but it also makes your day-to-day operations more efficient.
3. Financial Discipline: To sell, your financials need to be clean and transparent. You naturally get more disciplined about managing money, optimizing cash flow, and driving profitability. These are all essential ingredients for a healthy business that’s ready for anything.
4. Market Appeal: By keeping potential buyers in mind from the start, you’re building something that’s not just successful, but also highly appealing in the marketplace. This often means choosing industries with strong demand, building a brand that stands out, and ensuring you’ve got a competitive edge.
5. Emotional Detachment: When your goal is to sell, you make fewer decisions based on emotion and more on data and market trends. This practical approach can help you avoid the common pitfalls that come with running a business and leads to smarter, more profitable choices.
As you see, I am a huge fan of building businesses this way. With a more practical private equity/venture capital approach. Do you agree? Let me know in the comments.
If you are coming to the UAE to meet investors and strategic partners. Send me a DM me on LinkedIn or go to www.doublemorgan.com