Business owners – what is your end game?
Why do you own a business?
It’s interesting to consider this because we are shocked at how many business owners haven’t taken the time to consider this fundamental question.
From a big picture perspective, having a business provides you with a lifestyle. That’s it!
It gives you cash now to fund your family spending, and hopefully a lot of cash in the future when you sell your business.
And it’s very similar to having a Self-Managed Super Fund (SMSF), an investment property or share investments. They give you cash either now or in the future, or a combination of now and future.
Having a business, SMSF or an investment property is not the important thing. The important thing is what the cash you receive from owning these allows you and your family to do.
Your plans for what you do will do with your business, SMSF or investment property in the future are what we call your ‘end game’.
A good business mentor and friend of mind once taught me that “the point of having a business is to sell it – even if you don’t want to right now.”
This one pearl of wisdom could mean hundreds of thousands or even millions of dollars more for you in the future if you let it guide you now.
Here’s how… as you run your business, start to make decisions now to plan for selling it – even if you don’t plan to sell it for many years.
The biggest thing you can do is to make changes so that your business does not depend on you. If your business needs you to operate – can you really sell it? Absolutely not.
Setting up systems for your business is the key. You can then train your team to follow your systems, and then you can gradually delegate what you do to the right team members, and then you’ll find that you’ve got a business that can partially run without you.
Would you like us to be your sounding board?
As your accountants, we can help you to work out your end game, and plan to have a business that you can sell for a much larger amount in the future because it doesn’t depend on you.
Contact us today for a free initial meeting about creating your end game.
Next month, we’ll explain the 2 key things that affect the valuation of your business, and how you can improve your business value in a future sale.
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
