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This was a lot of work, but it proved to work well for me because their expectations were
clearly laid out and I started our business relationship by working closely together.
This in turn creates a highly efficient team and “family.” I like to address my group of em-
ployees as a “team” because that is really what we all are. The struggle with this concept is
when a member of the team stands out as the weak link and often, as the business grows,
there is a team member who cannot grow with it. It's about creating clear expectations and
job descriptions for your employees so they have the opportunity to excel.
The bottom line is that growing a business is an evolutionary process. It can be messy and
it most certainly is changeable—but it's about learning and taking risks. Just what the en-
trepreneur ordered!
When It's Time to Sell
There are some common questions asked by owners who are considering selling their busi-
ness. One of the initial concerns is about timing the sale with an upswing in the business-
sales market—it just makes sense to try to sell your business when the market is swelling.
Of course you will be considering all aspects of your business when it comes time to sell,
but what will be most important (other than market conditions) will be the state of the busi-
ness and what you will want out of the deal.
You will need to carefully consider the current state of your business. There's something to
be said for a business with a long track record of increasing sales and profits. Conversely, if
you think that you can build a business and “flip” it within the first year, don't be surprised
to find that there aren't buyers lining up at your doorstep ready to write big checks. Even if
you're showing phenomenal profits, a one-year history is just too risky for most people to
invest in.
The current condition of your individual business is a significant factor in timing its sale.
Businesses that show a strong track record of steady or increasing sales and profitability
will always sell faster and for a better price than those that are in a decline. If your business
is up or steady, it is a good time to sell. No matter the external economic factors surround-
ing your company, if your business is up, the demand for it and the sales price will fol-
low. Furthermore, there's a perception in the investor's world that a business that's doing
$10 million per year in sales is a desirable entity. It's just a benchmark number. Of course
profits need to be there as well as a steady and consistent flow of good business. If you
have a business that's doing $10 million per year, you can expect a different kind of buyer,
a serious buyer, and you will enjoy a bidding war to take you over.
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