Biz Owner "Burn Out"
I recently spent time with a Business Broker who mentioned that by the time most business owners choose to sell their business they have completely checkout mentally. Meaning they are simply "burnt out" doing little in terms of growing their business. This unfortunately results on sub-par valuations. More importantly, why would a business owner allow that to occur in the first place? Answer: Poor Planning. As mentioned in prior articles it may take several years to conduct Profit Management so as to maximize a firm's value. More importantly, by conducting ongoing Profit Management by measuring, monitoring & analyzing where and how profits are made can allow business owners more time to focus on revenue growth & theoretically work less stress freer lives. Successful profit management means that for a given revenue rate your profits are higher-- meaning you are working less for more. It's like getting an annual tune up for your car to make sure you get the best gas mileage. So before you reach your 50's stresses out and ready to sell your business consider planning ahead for the inevitable sale.