I am excited to highlight some of the things I've learned from my friend Laurie Barkman, The Business Transition Sherpa, who has a wealth of knowledge on building and exiting businesses successfully.
Two key takeaways from Laurie that have profoundly impacted my perspective:
1. Begin with the End in Mind 🧠 🎯
Laurie emphasizes the importance of starting a business with a clear exit strategy. Without this foresight, you risk significant long-term damage to your business. Studies show that businesses with a defined exit plan are more likely to achieve higher valuations and smoother transitions. This forward-thinking approach not only ensures a successful exit but also drives better decision-making throughout the business lifecycle.
2. Build to Sell 🤑 🧾
Only 20% of businesses that are for sale actually sell. Laurie advises that baking in the right systems, infrastructure, documentation, and reporting as you grow is crucial for making your business attractive to potential buyers. Additionally, businesses that prioritize these elements typically experience more efficient operations, higher profitability, and greater resilience to market changes, making them more appealing in the competitive marketplace.
Laurie's expertise in business transition, succession, and value growth has been spotlighted in Newsweek, Forbes, Yahoo! Finance, and more. She’s the former CEO of a $100 million revenue company that was sold to a Fortune 50 and now serves as an adjunct professor of entrepreneurship at Carnegie Mellon University.
Check out her best-seller, The Business Transition Handbook, and her podcast for more insights.
See you next week!
