Your company shouldn’t need you

You’re selling your business.

That doesn’t mean you have to sell your pride along with it.

I understand the decision to sell your business outside the family wasn’t an easy one.

I chatted with Dave Whitwell, a CFO and trusted friend of mine from whom I’ve sought advice many times.

In the rest of this blog, I’ve included Dave’s wisdom on how to do your best to make sure your business retains its value, even as it moves to new hands.

Create a company that doesn’t need you.

To do this, you need:

• diversified relationships
• operational invisibility

Diversify Sales Relationships

Do sales rely on you alone, or does your team actively bring in business?

Buyers want to know that revenue won’t depend on a single person—especially the owner. 

Building a sales process that your team can manage independently will reassure buyers and increase the business’s appeal.

Make Yourself Operationally Invisible

The less your business needs you to run smoothly, the more valuable it is to someone new.

Are processes only in your head, or can others follow a written system?

Document everything. Simple, well-documented processes that anyone can teach will boost confidence in the business’s long-term stability.

When you’re on vacation, how often does the team call you? 

If they’re calling daily, it’s time to build out systems they can trust.

Hand off a company you’re proud to see continue.

It’s hard to let go, especially when the business won’t stay in the family.

By making these changes, you’re setting it up for success under new ownership and showing the next owner the true value of what you’ve built.

Make the proud sell.

Do your best to ensure your business continues to thrive—even after you’ve stepped away.

Thank you, Dave, for offering up this CFO-level advice and allowing me to share it.

Learn about Dave’s consulting services on his website, Whitwell CFO.