<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=275610486160139&amp;ev=PageView&amp;noscript=1">
CLIENT LOGIN
802.846.1264
South Burlington, VT

Value Creation Blog

What Is A Sale Ready Business?

Posted by Josh Patrick

sale-readyI have a problem. My problem is: How do I explain what I do to someone I don’t know? I’ve tried telling people I help them work less. That’s a problem if you don’t want to work less. I sometimes tell people I help them create value in their business. If someone told me that I would have no idea what they meant. I’ve even told people I help them become operationally irrelevant in their business or become a passive owner. Again, it just doesn’t seem to resonate.

There is one thing that I really do help you with, and that’s making your business one that’s sale ready. You probably have a pretty good idea what that means. The problem is you might not be interested in selling your business. You see, I’m once again stuck.

Sale ready does not mean you want to sell.

The most important part of the term sale ready is the ready part. If your business is sale ready there is no reason you have to sell. There isn’t even a really good reason why you have to spend any time thinking about selling your business. Having your business be sale ready means that if someone comes along and makes an offer that’s too good to refuse, you’re ready to go.

A business that’s sale ready means that you’ve done the right things to make your business be attractive to someone who might want to own it. When you do this, you’ve created more options for yourself.

Sale ready means you are out of the day-to-day.

The first step in making your business sale ready and one I help with a lot is getting you out of the day-to-day operations in your business. I call this becoming a passive owner.

You spend your time thinking about and acting on strategic activities. You aren’t getting stuff out the door. You’re not making sales calls. You have no direct responsibilities for pricing or servicing your customers. Whether you’re at your business or not makes no difference in how well your company runs.

Sale ready means you have a well defined market.

A sale ready company is one that knows who their best customers are and has a strategy for regularly creating sales from this group. You will be able to identify who your best customers are. You’ll be able to identify why they’re your best customers. You won’t let your sales group call on anyone but people who make up your best customers.

You might even have started a pruning process where you let anyone who doesn’t fit in to your definition of an A customer become ex-customers. This is the hard part. This is where you have to learn to say no.

Sale ready means you understand the hidden metrics.

All great companies know how to measure the things that really matter. For you it might be what the efficiency rate for billable hours. It might be the percentage of sales you achieve before re-stocking. It might even be what your profitability is per account.

Hidden metrics are ones that don’t exist in your profit and loss statement. They don’t exist on your balance sheet. It’s the measurements that you keep and watch that help you know whether you’re going to create great profits in the future. It’s the measurements you really pay attention to.

Sale ready means you know your secret sauce.

If you know why people buy and continue doing business with your company you’ve found the secret sauce. Your reason can’t because you’re easy to do business with. It can’t be because you have quality products. It has to be something much more concrete and understandable.

The best way to figure this out….put together a customer advisory board. Have this group of customers tell you why they did business with you in the first place. Have them tell you why they continue to do business with you. You just might discover what your secret sauce is.

What would you suggest?

I still have this question….what is it that I really do? Any ideas?

We have an e-book I’ve put together on our Objective Review process. This e-book explains our discovery process on how you can add more value to your life and make your business sale ready. If you’re interested in getting our Objective Review explanation, click on the button below.

objective review white paper

Topics: exit planning, business exit planning, salability,

Subscribe to Our Blog

Subscribe to Our Blog

Most Recent