When it comes to purchasing a small business with the goal of growing it into a larger, saleable venture, there is one key factor that stands out above all others: control. Many entrepreneurs dream of taking a small enterprise and developing it into something of greater value, but the difference between those who succeed and those who falter often lies in having a strong sense of control over the journey. Let’s explore how cultivating a sense of control can help you transform a small business into a valuable asset ready for a successful sale.
1. Owning Your Decisions from the Start
The first step in taking control when purchasing a small business is understanding the full scope of what you are acquiring. Whether it’s the financial health of the business, the current clientele, or the state of the physical and digital assets, knowing the ins and outs of the company is crucial. This means digging into due diligence and assessing every part of the business that may impact your ability to scale. Understanding the existing conditions, such as outdated equipment or unoptimized workflows, allows you to be proactive in shaping the next steps rather than reactive to unforeseen challenges.
When you feel in control, you make informed decisions, which leads to a greater sense of confidence and well-being. This helps ensure that every action you take aligns with your long-term vision for the company.
2. Setting a Clear Vision and Developing the Roadmap
Once you have purchased the small business, the next step is to set a clear vision for its growth. Ask yourself: Where do you want this business to be in five years? What does success look like to you? Vision helps you determine how you will enhance the value of the business—be it through expanding products or services, building a more efficient process, or increasing profitability.
Having a sense of control means you’re not just working in the business but also on the business. Set both short-term milestones, such as increasing monthly sales by 10%, and long-term milestones, like expanding into a new market within two years, to ensure you're progressing towards your larger goal. A roadmap can guide you, keeping the company on course even when day-to-day challenges arise.
3. Leveraging Your Unique Skills
A key aspect of growing a small business into something saleable is utilizing your unique skills and strengths. Many small businesses are successful because the owner has a particular talent or network that gives them an advantage. By doubling down on these skills, you can amplify growth, differentiate the business, and ensure you have control over its direction.
For instance, if you have a strong background in digital marketing, use that skill to generate greater brand awareness and build a steady stream of new clients. By leveraging your abilities, you can focus on areas where you have influence and control, giving the business a competitive edge that adds value.
4. Creating Systems for Scalability
One of the most critical elements in creating a saleable business is building systems that allow the company to operate independently of you, the owner. When you create processes that can be easily replicated, such as a documented customer service workflow or a standardized inventory management system, you provide future buyers with the confidence that the business can run smoothly without your direct involvement.
Control in this context doesn’t mean micromanaging every aspect of the company; it means creating efficient systems that enable scalability. It means training staff, documenting workflows, and putting in place metrics that allow you to measure performance accurately. With these structures in place, potential buyers see an opportunity that’s not just successful but is also set up for further growth.
5. Monitoring and Adjusting for Enhanced Value
Taking control also involves continuous monitoring and making adjustments to enhance the value of the business. Market trends, customer behavior, and technology all change, and your ability to adapt will greatly impact the value of your business. Regularly review your financials, customer feedback, and industry trends using tools like Sage for financial tracking, SurveyMonkey for customer feedback, and Google Trends for industry insights to determine whether adjustments are needed to stay on the growth track.
An essential part of this process is ensuring that you're always thinking with the end in mind. Ask yourself what a buyer would value in a business like yours. Is it recurring revenue? Is it a loyal customer base? Knowing what drives value will help you make the right moves to further enhance the business's worth.
6. Building Relationships and Tapping into Expertise
While control is key, that doesn’t mean going it alone. Building relationships and tapping into external expertise is a powerful way to ensure you are making the best decisions for the future of your business. Seek out mentors, build a network of other business owners, and consider hiring experts for specific areas where you may need additional insight. All of these actions contribute to a greater sense of control, as they help you make informed decisions and mitigate risks.
Conclusion: The Value of Control in Creating a Saleable Business
A strong sense of control is a significant predictor of whether an entrepreneur will successfully grow a small business into a valuable, saleable asset. By understanding your business thoroughly, setting a clear vision, leveraging your skills, building scalable systems, and being willing to adapt, you can enhance your company’s value and make it attractive to future buyers.
Remember, control is not about being rigid or refusing help; it’s about taking ownership, making informed choices, and staying adaptable. When you have a sense of control over your business, you are better positioned to create not only a profitable venture but one that others see as worth investing in.
