Saturday, February 5, 2011

Building with the goal of selling

When an entrepreneur launches a company, the ultimate goal of the owners may not be immediately clear – to the company or to themselves. Do the owners eventually want to sell the company? Do they want to build something that can revolutionize the market? Or do they merely want to make a living?Writing in , veteran entrepreneur Norm Brodsky suggests – regardless of their ambitions – entrepreneurs should build businesses as if they will eventually be sold.

“The point is that building to sell will lead you to ask a lot of questions you should be asking anyway but don’t because you’re focused on the day-to-day, month-to-month challenges of running a company,” he writes.
Those questions deal mainly with the market, such as how competitors are pricing or running their operations or what the gross margins of products are and how they affect revenue and profit.
A number of recent studies have projected the business sales market will improve in 2011.

http://www.bizilla.com/blog/2011/02/building-with-the-goal-of-selling/When it does, small companies should prepare themselves for selling a business, because even if they do not intend to sell, their competitors may. In addition, you never really know what you’ll do until there is a buyer standing in front of you holding out a tidy check.

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