A Health Check For You and Your Business – Keep Going or Sell?
At First Choice we always tell business owners to run their business so that they can sell it at any time. That means being sale-ready at any time of your business’ life cycle. That way, if something unexpected happens, you have a ship-shape business, in a good position to get you a good sale price quickly. But how do you know when it’s time to let go?
The end of financial year is a time when busy business owners grant themselves a bit of time to stop and think. Completing tax returns, or visiting the accountant, is the time when business owners are forced to think about the nuts and bolts of their business (how to be more efficient, how to reduce tax, whether to purchase new equipment etc). While you’re undertaking these tasks, this is a good time to ask yourself wider questions, about what you want from life, and whether you still have the passion and motivation to run your own business.
Here are some ideas to guide your thoughts. This checklist can be used to monitor your motivation levels, but can also be used to identify areas to address in the short and mid-term. Answer the questions honestly, and quickly (don’t over-analyse), and show your responses to someone who knows you well (they might give you a different perspective on your relationship with your business).
(1= strongly disagree, 5= strongly agree)
(Adapted from businesssurvivaltoolkit.co.uk
About You 1 2 3 4 5
I am happy that the business is achieving what I set out to do
I feel very motivated about my work
I am creative, and keep coming up with ideas for the business
I am flexible, and able to adapt to changes quickly and successfully
There is a good balance between my work and personal life
I prefer working on the creative aspects of my work, and I’m not interested in managing a business
Your Customers 1 2 3 4 5
I have a broad range of customers
I have a good understanding of what my customers want
I can identify a range of potential customers
I have increased my customer base in the last 12 months
What I Offer 1 2 3 4 5
I am constantly reviewing what I offer against what customers want
I have several ideas for new products/services
I have a clear sense of where my business is positioned in my sector
I know which areas of my work generate the best income
I undertake research to test new ideas
Communications 1 2 3 4 5
I use a wide type of communication channels to develop my business
I love talking, and communicating with others
I regularly network, to gather information for my business
I am good at building relationships and keeping up partnerships
I am constantly building my extensive network of resources
Money 1 2 3 4 5
My profits have increased this year upon last year
I am comfortable dealing with numbers
My finances are well organised, and I keep my records up to date
I pay my debts on time
I am good at managing cash flow
Growth 1 2 3 4 5
I am good at spotting new opportunities
I am prepared to take calculated risks to grow
I have a 12 month development plan
I am motivated by success and driven to do well
Working with others 1 2 3 4 5
I have a network of peers to turn to when I need advice
Working on my own, I know it’s important for me to get out and meet people
When I need tasks done, there are people I can rely on
If you’re feeling like it’s time to move on, contact us at First Choice Business Brokers on 9899-1888, for all the help you need to plan ahead for your business sale.
