Let’s continue from our last treat part 5
While the goals for each individual entrepreneur may vary,most sophisticated entrepreneurs share one common goal when starting a business- to eventually exit the business for a large sum of money.
Savvy entrepreneurs know that they can make money day-to-day running a successful business. However, they know that the real money comes when they “exit”,that is, when they take the company public or more likely, sell the business. That is when the million Naira windfall comes that most entrepreneurs dream about.
Unfortunately,while successful entrepreneurs eventually sell their businesses for millions or tens of millions of Naira(or more),most entrepreneurs fail to sell their businesses,or do so at a much lower price. And the number one reason for this failure is lack of planning.
Selling is very much different from selling other things,like a house. A business is much more complex. It has lots of “moving parts”, like customers,employees,operational processes,marketing commitments,and many more.
And as a result,you can’t decide to sell your company next week or next month. Or even next year in many circumstances. Rather, you may need two or more years to properly Plan for your exit.
There are numerous keys to successfully selling your business. One of these keys is to make yourself replaceable. That is, if you,as the business owner,is too critical to the business’s success,no one will want to buy it.
To overcome this challenge , successful entrepreneurs invest time in training others to run their businesses. They establish. formal, written processes and procedures. They delegate specific responsibilities and many other things.
Most entrepreneurs have the vision of retiring with a great fortune and doing all they want to do…summer homes…winter homes…amazing vacations ,etc. Successful entrepreneurs achieve this vision ,because they invest the time and energy to plan for their eventual exit.
To be continued..