Blog: Sellability – A Priority for Savvy Business Owners

What are your business objectives for the year? Many entrepreneurs are focused on profitability and perhaps a revenue target. While these goals are critical, there’s another objective that could provide an even greater return: creating a business that’s ready to sell.

But what if you have no plans to sell your company? It doesn’t matter. Here are five compelling reasons why you should aim to build a business that’s sellable, regardless of when—or if—you decide to exit:

1. Sellability Offers Freedom

A key aspect of sellability is how well your business can function without your direct involvement. If your company is heavily reliant on you, it won’t attract buyers. By developing a capable management team and establishing streamlined processes for employees, you create a company that can run without you. This shift gives you the freedom to step away whenever you need to, opening up a world of opportunities to do what you want, when you want.

2. A Sellable Business is More Enjoyable

Owning a business is much more enjoyable when you’re able to focus on strategic growth and big-picture decisions. Unfortunately, many business owners spend their days bogged down in mundane tasks—managing paperwork, handling employee reviews, resolving customer complaints, and more. These responsibilities drain the excitement from business ownership. Delegating these day-to-day duties to others is essential if you ever want to sell, and it will make running the company more enjoyable in the meantime.

3. Sellability Provides Financial Security

You likely monitor your investment portfolio regularly, not because you plan to sell immediately, but to track your progress toward financial freedom. Similarly, by building a sellable business, you’re creating an asset that grows in value. Just like your investment portfolio, your business can eventually be converted to cash if needed, offering you peace of mind.

4. A Sellable Business is a Valuable Legacy

Imagine gifting your child a classic car, only for it to break down shortly after they drive off. Instead of an asset, it becomes a costly burden. This scenario mirrors what can happen if you plan to pass your business to your children or key employees without ensuring it’s prepared to run smoothly without you. A business overly dependent on its founder is more of a liability than an asset. Making your company sellable ensures you’re passing on a well-oiled machine rather than a fixer-upper.

5. Some Things Take Time—Sellability is One of Them

Certain things in life, like making your business sellable, can’t be rushed. If you plan to sell your business in the future, the process of making it sellable involves gradual changes, and buyers will want to see consistent performance for a few years after these adjustments. Therefore, even if selling isn’t on your immediate radar, it’s smart to begin working on sellability now to give your business time to thrive under new systems.

Interested in assessing how sellable your business is and learning what adjustments you might need to make? Contact Beth Renga, Director of Consulting Services at beth.renga@hfco.com for a complimentary consultation.