Have you ever wondered what you could do to increase the value of your business besides increasing revenue? In this episode, Shanice Miller, a business productivity consultant specializing in project management, is sharing how systems and processes can increase the resale value of your business. Her passion for identifying and solving inefficiencies began when she sold her first business at a less than premium price point because she didn’t have her systems and processes streamlined and documented.
In this episode, you’ll learn:
6:23 Knowing when you’ve had enough of your business
9:30 Why you should sell your business instead of shutting it down
15:51 The difference between being a CEO and building an asset
21:49 What you can do to sell your business for six figures instead of five
33:08 How to audit your systems to make sure you’re maximizing ROI
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Key takeaways from the episode:
Every one of us is going to exit our business one day - it's hard to believe, but it's true! Whether you're going to retire or have just had enough of your business - there will come a day when we aren't in it anymore.
In the case of this week's podcast guest, sometimes the burnout just starts to get to you, or you don't feel aligned with your customers anymore. What should you do if that happens?
Well, you can pivot your business, you can shut it all down, or you can sell it!
Whether you're feeling like Shanice was or are just considering all your potential exit strategies, I want to encourage you to think about selling your business instead of just shutting down and walking away.
The main reason I want you to think about selling? You'll get money from selling that you wouldn't get if you just walked away. Like Shanice, who was able to get some value out of a business that wasn't serving her anymore.
But you can have the benefit of foresight after listening to this episode and set yourself up to sell your business for six or seven figures! How? You have to build an asset.
There's a difference between being the CEO and the business owner. The CEO runs the day-to-day of the business, and is really like an employee of the business, while the business owner is behind the scenes and owns the shares of the business.
If your business stops making money when you stop working, then you haven't yet built yourself an asset.
So what are some things you can do to sell your business for more money? According to Shanice, who has actually been there, here are X things she would have done to get more value out of the sale.
Set up systems to create a more turnkey business - get your processes out of your head and documented on paper to help you get more consistent, predictable results from your business. This includes your client delivery systems, marketing and sales systems, financial systems, and more.
Financials - Get a solid understanding of your big picture strategy for increasing your profit (like we do in my Cash Flow Intensive!). For every dollar you increase your profit, you'll easily get 3-5x back in your sales price.
Outsource - Hire a team or use software and automations to run your business without relying on you to handle every single step of the process.
Branding - Many of us start our businesses with a personal brand. If you know you want to sell one day, it might be a good idea to start separating your personal brand from your business's brand, so it's easier for someone else to step into your shoes.
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Resources mentioned in this episode:
Connect with Shanice on LinkedIn
I’m Sarah Young - a CPA, Virtual CFO, and the Owner of Young + Co! I have over a decade of experience in helping entrepreneurs scale their businesses and build wealth at the 6- and 7-figure levels, and I started the Profit + Prosper podcast to help you do the same. Profit + Prosper is a business finance podcast created to help entrepreneurs build their wealth in a way that’s fun and empowering. This is NOT a boring numbers podcast - I will share tactical tips to increase your profit so you can truly prosper in your business and in life. I hope you’ll subscribe so we can Profit + Prosper together!
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