Preparing your business to sell someday.
Most solo businesses are unsellable because they depend entirely on the owner. The work that makes a business sellable is the same work that makes it less stressful to run. Here's the playbook.
Most solo businesses are unsellable because they depend entirely on the owner. The work that makes a business sellable is the same work that makes it less stressful to run. Here's the playbook.
A sellable business has (1) documented operations that don't require the owner, (2) recurring revenue or strong customer relationships not personally tied to the owner, (3) systems and tools that transfer (not 'all in the owner's head'), (4) clean financial records 3+ years back, (5) a transferable customer base. Building these things doesn't require selling — they just make the option available and make the business better-run regardless.
Process docs, video walkthroughs, written SOPs. Not exhaustive — just the recurring stuff that matters. A buyer (or covering operator) should be able to run the business with 30-60 days of onboarding.
Clients have multi-touchpoint relationships with the business, not just with you. Email lists, branded touchpoints, multi-person communication. Even solo businesses can build this with care.
Subscriptions, retainers, recurring service contracts. Recurring revenue is valued at 3-10x its monthly run-rate; project revenue is valued at 1-2x annual. The premium is enormous.
Books in QuickBooks, P&L by month, 3+ years of clean records. Investment: hire a bookkeeper. Saves the buyer's due diligence headache and increases sale value.
Routing layer means urgent matters route without the owner. Vendor relationships are documented. Authorization thresholds are written. Buyer takes over a system, not a savior.
Now. Even if you don't plan to sell. The work makes the business less stressful to run AND makes the option of selling available later. Both things are valuable; both things compound.
Buyers value businesses that don't depend on the owner. 14 days free.
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