Feb 10, 2020
Today's episode of the podcast, Robert Hirsch from Freedom
Factory talks about the strategies you should be using when getting
your company ready to sell.
You can listen to the podcast, watch the video, or read the transcript below.
Hi, it's Robert Hirsch from Freedom Factory. I was just working
up in my mountain house and I needed to tell you this. I'm just
working on it with a new customer and we're getting their company
ready for sale, and I'm going through all their information, and I
realized that not only do I need to tell our new customer this, but
I think telling all of our customers how to get your company ready
for sale is only going to help our tribe and our entrepreneurs.
So first of all, I want to talk about a difference between owning a job and owning a business. And I talk about this a lot, but perhaps I haven't explained it as well as I could.
So if you're not sure if you own a job or you own a business, just don't show up for a week. Maybe do a little bit of work from home. But if your income stays the same or goes up, you own a business. You've built a machine that makes a machine.
If your income goes down or your sales go down, you own a job. And before you go to sell your business, being able to transition, owning a job to owning a business who really help your valuation.
And if you don't know how to do it. We help businesses with that all the time with our home stretch program. And so again, if you're not sure if you own a business or you own a job, the best litmus test that I know is just don't show up. See what happens when you're not there because you want a business that's built on systems and processes, not on one person in this intrinsic knowledge.
Also when I write my operation manual for my business, I try and make it so easy. I joke that a monkey could do it, but I try and make it so easy that even my teenager could do it. Being able to read it and understand it, not using a lot of industry jargon or difficult to understand words so that the business operates the way you want it to is going to maximize your valuation. By the way, if you haven't put together an operations manual for your company and you're thinking about selling it, this would be a great time to do so.
Some of the tricks that I used to do that, I talked to every role and I haven't put their roles and responsibilities. I put it all in there. I take my company mission and values. I put it all in there. I take my contracts and the things that I use over and over again. For example, here at Freedom Factory, we have a pretty robust document set, non-disclosures, letter of intent, asset purchase agreements, stock purchase agreements - all the things that we use a lot for our client's benefit.
I put it all in this operations manual to get it into one place so that's easy to use. These and other things are going to help you build a business and not a job. And if you do own a job, please don't be discouraged. You know, transitioning a job to a business is fairly easy to do. It usually takes about three to six months and it can dramatically affect the final selling price of your business. If you need any help with anything, just give us a call at Freedom Factory. Thank you so much for watching. Please hit like and subscribe and we'll see you soon.
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Phone: 844-MAX-VALUE (844-629-8258)
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