How Will Your Business End?

By now we're all familiar with that very important Steven Covey advice to "begin with the end in mind" ("The 7 Habits of Highly Effective People").  Yet in terms of starting and running our own businesses, "the end" is seemingly unknown, or somewhat short-sighted (as in "I want to build a million dollar business").  Business owners seldom think about what they'd like the business to look like at the time they cease to own it, nor do they think about the way it might be sold, transferred or closed.  However, as that time of retirement nears, these thoughts become more prevalent, even though the time needed to accomplish the dream may no longer exist.

In my book, "Final Act of Ownership", I discussed the process of selling the business, and in addition, the characteristics that improve value.  These are the very things that are usually part of "the end" that most of us dream of.  So wouldn't it make sense that when we "begin" our businesses, we start right away to work on these value-producing elements?

Think of it this way... when we begin by working on selling our business, we actually create a more valuable business, faster.  A more valuable business is one that typically generates more money, so the owner can take home more of it.  Making more money is great, and is usually accompanied by having more fun.  Now isn't that the type of business most of us dream of, a money-making, fun enterprise, that will ultimately fund the bulk of our retirement?

Of course it is, but then the question becomes, what is it that needs to be done to create that dream?  I suggest three big picture strategies:

• Educate yourself about what could or should happen at "the end".  What makes a business more valuable?  What type of buyer would be interested in the business you are striving to build?  How would you demonstrate the value of your business?
• Systematize your business.  The more you can create a business that can operate without you, the owner, the more valuable it typically becomes.  Work also on creating excellence in the core functions of your business:  Marketing & Sales, Financial performance, Operations, Strategic direction, and the all-important People & Teamwork area.
• Reach out to others for advice, mentoring, coaching, ideas, or whatever form it takes for others to fill the need you have to fill the gaps of your own understanding.

Most entrepreneurs start a business doing something they are technically good at, without a lot of thought to where their technical expertise may lead them.  But with just a little more thought about "the end", business success in our communities will grow, and the financial rewards will be extended beyond the ownership of the business.