Even if you don’t plan on selling your business for ten years, you should operate as if you are selling it tomorrow. This “Exit-Ready” mindset is the ultimate accomplishment in business hygiene. A company that is ready to be sold is a company that is organized, transparent, and independent of its founder.
The first step is de-risking the founder. If the business stops working the moment you go on vacation, it is worth significantly less to a buyer. You must document every process and empower your management team to run the show. A buyer isn’t just buying your revenue; they are buying your systems.
Next, focus on your “Clean Books.” Ensure your personal expenses aren’t mixed with the business and that your financial reporting is rigorous and audited. Finally, ensure all your contracts and IP are in order. Do you own your trademarks? Are your employee contracts clear? By cleaning up the “boring” details now, you maximize your valuation later. When the time comes to exit, you want to be in a position of strength, choosing the best offer rather than desperately seeking a way out.
