When you set your business up for future success, you can set yourself, your family, and your personal interests up for similar success. But a common problem owners overlook is how to address Deal Killers, which can prevent you and your company from achieving the success you want. Today, we’ll examine eight common Deal Killers and show you a five-step process that can help you address them.
Step 1: Address the Big Three Financial Deal Killers
The first three Deal Killers you may encounter concern your financial needs.
- Assuming that you can sell your business today and achieve financial independence.
- Assuming the market values your company as highly as you do.
- Focusing solely on getting the most money possible for your business.
Some business owners mistakenly believe that they can live on less money after they sell, which is rarely the case. And because your business is likely a part of your identity, you may end up overvaluing it, which can create impossible expectations and stunt proper planning. Finally, focusing only on getting the absolute most money for your business can clash with values-based goals, which can cause unbearable frustration.
Fortunately, you can address these financial Deal Killers through pre-sale planning. This includes some of the following action items:
- Objectively determining how much money you need to achieve financial independence.
- Getting an objective estimate of your company’s value from an investment banker or business broker.
- Assembling a deal team before you’re ready to sell, which can prevent you from taking your company to market before you and your company are ready.
With pre-sale planning, you can strengthen your company and bolster its value, which is good whether you decide to sell or not.