As a business owner who is planning an exit, you need to stay focused on the endgame: to get the most value from the sale of your company. An integral part of the exit planning process involves increasing the value of your business before a sale takes place. This requires time and discipline.
The process I guide my clients through enables them to increase the value of their company in specific ways. However, I’ve found that when a client lacks focus, especially when a sale is pending, the sale is often jeopardized. Frequently, the reason owners get into trouble during this time is because they become distracted. The way to minimize distraction is to be cognizant of your role in the future sale of the company.
Your role as the business owner should be that of a Finder. A Finder is an innovator, entrepreneur or leader. It is someone who is oriented to future outcomes. The B2B CFO® Finders, Minders & Grinders℠ visual illustrates different roles that exist within a company. Minders refer to the administrative, accounting and operational people in your company. Grinders refer to individuals involved in the day to day work.
The visual shows how a business owner is pulled away from their primary responsibility as Finder and into the the role of Minder and/or Grinder. Without the visionary and innovative mindset of a Finder, it’s impossible for you to engage in activities that will increase company worth. Here are some ways to avoid distraction as explained in the Exit Strategy Handbook:
- Delegate whenever you can
- Hold members of your team (attorneys, tax specialists, independent auditors, etc.) accountable
- Discard and replace team members who perform badly
- Work as if the sale of your company depends on it
- Work until the very last day
- Set goals and be strategic about accomplishing them
- Bring in a trusted adviser to aid you in staying on task
Want to know more about exit strategy planning? Contact me.