summer_ceo
New Contributor
User Power
Value/Post Ratio
80%
- May 6, 2018
- 5
- 4
I've owned a business for the last several years (professional-healthcare). In the last 2 years we've doubled in size and revenue. Being a professional, I had no prior business experience and this was my first business venture and am just learning as I go. I had met with a lawyer a while back who had told me that my business was not sellable because it was a business that relied solely on me and my credentials and that if I were to sell the business I would only be selling a few computers, etc. With that in mind, I measured the success of our business by how much profits we were bringing in each year. I've learned over the last few years that this advice is likely wrong, but I feel as if I need to have a better idea of the end goal in order to determine my strategy for the business. I am planning on a 2.5 year exit from the business either way.
If we are not likely to sell our business, then I will continue structuring my business as entirely owner involved because I bring in the most money to this business. And I know that once I am done with the business, it will just close and whatever money we will have is whatever profits we made over the years.
However, if we are growing our business with the intention of selling it then I will focus my efforts on removing myself from the business, taking less profits, and directing all my energy to growing the business and making it more profitable in the future so that most of our profits wil then come from the sale of the business.
How do you determine which strategy is most important? I am not sure who would buy our business and whether we even have enough to offer to make it attractive to potential buyers anyway.
If we are not likely to sell our business, then I will continue structuring my business as entirely owner involved because I bring in the most money to this business. And I know that once I am done with the business, it will just close and whatever money we will have is whatever profits we made over the years.
However, if we are growing our business with the intention of selling it then I will focus my efforts on removing myself from the business, taking less profits, and directing all my energy to growing the business and making it more profitable in the future so that most of our profits wil then come from the sale of the business.
How do you determine which strategy is most important? I am not sure who would buy our business and whether we even have enough to offer to make it attractive to potential buyers anyway.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.