Build a Sellable Asset - J V Crum, III, Conscious Millionaire Coach
One of the least looked at but most important ways for small business owners to make their millions is NOT by building the business - but through selling it during a high growth phase.
I made far more money by cashing in and selling our family's companies than from the year to year running of them. And, it positions you in a cash position to act on new opportunities, ones that leverage you to new financial heights.
Here it is in simple terms. You sell your business for some multiple of your current annual cash flows. If you have considerable land and hard assets, that can add to the equation. In my case, I kept the land, leased it to the buyers, then when it appreciated further, sold it to cash in even bigger.
When you start looking at your business as an asset that you are building not to continue owning, but to sell, you approach your business completely differently. You start to care about what matters in terms of maximizing your selling price. These are your customer lists, the speed with which you are growing your cash flows, the untapped, or only partially tapped opportunities (which you may not be in the position to tap - but which a buyer, with other resources, may be and will give them reasons to pay you even MORE for your business!).
You also can benefit when selling the business by getting more for your companies (because you are conscious that they exist and bargain for part of the savings they buyer will get) for the savings the buyer will have in terms of synergies and leverage due to size. These include purchasing power to buy supplies and services for less than you are having to pay as a smaller business.
To Your Success!
J V Crum, III, MBA
CEO, Conscious Millionaire Institute, LLC