There is value in business not only from the standpoint of its economic concept of value but value in a sense where someone is made to determine the health and well-being of the firm. Business you see involves a common goal or purpose that is worked out by various talents and resources to achieve a specific goal, therefore its health and wellbeing is something that cannot be measured in monetary terms. This value includes the value of its employees, customers, suppliers, alliances, partners, pipeline partners, managerial value, and its societal value. In other words, it must include the intangible assets that embraces the intellectual capital and the blueprint of its business model.
The healthier the business the bigger its score will be. However, despite the numbers, foretelling its future always involves risk because the longer you hold on the that business and especially the bigger it gets, the more delicate it becomes and the more susceptible to failure. Logic tells that anytime you have an opportunity to encash or get liquidity from your company, you can sell either a piece or all of your company to a potential buyer.
Small businesses have small economic and intellectual capital. This is a good time to take risks for your small business since there is less danger when the company is small. In fact, taking chances are essential and beneficial if you want to grow your business further. Through hard work and encountering various risk – as your company grows, so does the value of your business. But, as the business starts to grow fast, the business owner must start to be more conservative as the value of the business starts to grow. When you no longer want to use your time doing damage control or fixing bad strategies, it is about time to sell that valuable business. You don’t sell your business because it is in a bad shape, but you sell it because it is a very good decision.
People gifted to take challenges do not necessarily have to take their chances on big stakes risk found at the latter stage of the business lifecycle, besides there are really business people who are extremely good at the first three stages of the business lifecycle. So when your business is at its prime, this is the best time to sell it, get a huge capital for your next venture which, hopefully, is a more interesting one, or one with a higher potential.
Why not learn more about Resources?
Many business owners who are considering the sale of their business will need someone to broker or market the business that they are selling. If you hire a broker, make sure that everyone is involved in its sale including your attorney, accountant, mentor and financial advisor.