Here’s why it's a struggle to find buyers when you decide for an exit
As a founder, a pivotal part of your journey will be your eventual exit from the business.
Right now, that might seem a long way away. (And perhaps the last thing to think about as you grow your business.)
But we actually need to start planning for our exit loooooong before we want it to happen.
Otherwise, when you reach the point of sale, you might find yourself struggling to find a buyer. Or get the terms you want.
In my experience from exiting five ventures personally and helping many others, here are 5 key mistakes you want to avoid.
1. Making the business too dependent on you
A huge red flag for buyers is when the business can’t run without your day-to-day involvement.
If you *are* the business, it’s a tough sell. Buyers want a business that’s turnkey, one that can *almost* run without you.
To avoid this trap, start delegating, build systems, and create a leadership team that can thrive in your absence.
2. Lack of uniqueness
Buyers want something special - something that stands out.
Businesses that fail to articulate their differentiators will fail to attract attention. People pay a premium for businesses with a great brand, unique products, outstanding people or intellectual property that sets them apart.
Is your business in a category of one all on its own? If not, it’s time to start thinking.
3. Unprepared for due diligence
The due diligence process can be brutal if your business isn’t in order.
Could you say - hand on heart - that you would be prepared for a deep dive into your financials, contracts, customer base and operations right now? Incomplete or messy records can kill deals before they even get started.
The solution? Get your house in order long before you start talking to buyers, and start building a data room early!
4. No long-term vision or strategy
Thinking super long-term is hard if you’re not accustomed to it. If your business doesn’t have a clear vision for the future, buyers won’t see the potential.
What can you start doing now?
This is where a well-defined BHAG (Big Hairy Audacious Goal) comes in. Buyers want to know that the business has a roadmap for growth, and that the wheels are already in motion.
5. Ignoring the emotional element
Selling a business is not just a financial transaction—it’s an emotional one.
Parting with your business, especially if it’s been your identity for years, is tough. Buyers pick up on hesitation, and this can derail deals.
The key takeaway?
Building for exit starts many years before the deal is done.
If you want a successful exit, start preparing early. Build your systems, define your unique value, and plan for the long haul.
I’ve recently created a Business Growth Audit to help with this. It asks you 19 questions around 4 priority areas to help you identify your next step for business growth. If you’d like to sell your business (one day, eventually!) then the Audit can help you to chart a success path today.
Cheers,
Josh
