The Lifestyle or Sale, Happy Place

My experience is that sometimes it's perfectly reasonable and understandable for an owner or entrepreneur not to know if they have a lifestyle business, or something they will sell.

You will often be told that its crucial you know exactly what you will do with your business from the very first day.

I disagree, what I needed to do to make an enjoyable lifestyle business, generally also made it more saleable. Afterall, it is always a lifestyle business until you sell it. It is literally providing you a lifestyle, today, while you live. The same things that give you a good lifestyle, often benefit a new owner just as much.

What I actually needed to do, was think about the long term future, what I wanted (or might want), realise it could go either way, and then make sure I didn't do anything to make my business less saleable. This is a slightly different but important idea.

Let me explain with a few examples...

Over Dependence on the Owner

This made me tired, very tired. It turns out it is also a big turn off for buyers. They want to buy a company that can run without you. Otherwise, what are they buying...you?

Every owner at some point is guilty of believing they are the "only one who can possibly do x". It's simply not true, I'm sure you are great, but I am prepared to guess that you are probably not the only living human, on earth, with any particular skill. Sorry, no offence meant.

Either you can find someone else who is as good (and ideally better) than you, or you can make a process that allows others to do it your way.

I started doing this too late and it's my biggest learning. Establishing a leadership team was actually great fun and very rewarding - top tip #1.

It also helps boost staff morale and gives them progression paths that aid retention.

Finances

The things buyers tend to like, also help the lifestyle owners stress levels, enjoyment and sleep quality!

For example;

1. Be profitable

2. Have good information on what does and doesn't make money - check it monthly

3. Avoid relying on one customer or supplier too much

4. Avoid high debt

5. Get on top of cash flow, including client payments

6. Spend sensibly - living within your means

Innovate, Improve and Develop

These are normally the most interesting, exciting and rewarding projects, keeping them in your daily routine is much more fun. Buyers like this too, if done sensibly, as it adds value.

Such as;

1. Makes you stand out in the market (differentiation)

2. Offers future workstreams

3. Adds efficiency and longevity

4. Builds a culture focused on delivering what the customer wants

Make sure you get the finance work done in the previous section first, so you know (not just hope) and can demonstrate the projects are delivering.

Be well run

Ok so this is boring, it may even require some delegation if you know you hate admin and have a healthy interest in procrastination. However, getting the basics right make everything else easier, less stressful and more seamless for you and your team.

1. File everything, have an organised place for that file on your servers (make a structure)

2. Make sure everything is up to date, review and renew on time (keep a scheduler)

3. Put the paperwork systems in place (policies, contracts, job specs, agreements)

These are important to a buyer too, they need reassurance that you haven't dropped the ball somewhere. It is also a requirement of due diligence, which is a process you want to make as smooth and as simple as possible, I promise you!

So if you are unsure whether to enjoy your business or start planning to sell it, don't let that hold you back, do both!

Keep the momentum and excitement of continuously improving, whilst at the same time protecting both of your potential futures.

Thank you for reading. To read other blog posts click here: https://pivotaluk.co.uk/my-blog 

For a free consultation on strategy for developing an enjoyable lifestyle business or sale and exit, please contact me at chansen@pivotaluk.co.uk

 I have been lucky enough to successfully buy, grow, mature, sell and exit my own business. I now use this experience to help other business owners on their journey.

Retained Advisor // Mentor or Coach // Strategy // Business Health Check