A Surprising Way to Re-energize Your Business
Recently a reader of one of my columns wrote the following comment:
'If you are running your business with one eye looking at selling it to someone else, how much passion and dedication are you putting into it?'
Respectfully, I have to disagree with what the reader is suggesting.
In fact, I have never been more passionate about a business than in the weeks and months prior to selling it. I have never woken up earlier, with a greater sense of purpose and determination, than just before selling it.
Frankly, if it wasn't for the potential disruption to employees and customers, I might go so far as to say every business owner should put his or her business on the market every five years for the Red Bull–like jolt of energy it can bring to solving the business's toughest problems.
Here are four things that putting your business up for sale gives you the energy and discipline to tackle:
1. Offloading pet relationships
Every business owner has them: customers who are loyal to them personally and insist on dealing with them directly. When I went to sell my last business, I had to gently pass my pet customers over to other people to manage.
2. Standardizing contracts
My customer and employee agreements were developed iteratively over time. Each agreement would be slightly different from the last, as we took into account things we had learned from past contracts. When I started to prepare my business for sale, we needed to get disciplined about having one standard employee agreement and one standard customer agreement.
3. Fixing up your website
Updating our website was always a bit of an afterthought for me. It was months before we updated our 'contact us' page after we moved offices, and employees who had tendered their resignation months before remained on our online list of team members. In short, I was sloppy and let other matters take precedence over keeping our site sharp and accurate. That is, until I decided to sell my business. Then I got serious about implementing changes to the site so potential buyers' first impression was of a professional, relevant company.
4. Dealing with problem employees
I used to procrastinate when it came to firing problem employees. I would try to get them to quit through a series of ever-harsher performance reviews. If that didn't work, I'd restructure their job in an effort to minimize the shrapnel. When I know I'm getting ready to sell a business, my desire to close the deal gives me the courage and determination to stomach the most difficult of business conversations.
If you find yourself losing passion for your business, the fastest way I know to get re-energized is to prepare your company for the market. Whether you decide to sell it or not, your business will benefit from the shot of adrenalin.
JOHN WARRILLOW | Columnist | Sellability
John Warrillow is the author of Built to Sell: Creating A Business That Can Thrive Without You and the founder of The Sellability Score, a cloud-based software company that helps business owners improve the value of their company.