Do you know when you are going to sell?

by John DeHart

Many people go into business thinking that they will be in it forever. But few are. The reality is, things change as time goes on. Sometimes there are forces that come up that are out of your control and you are forced to sell, sometimes you just want to sell because you are tired, and sometimes you sell because the opportunity at hand is too great to pass up.

In building Nurse Next Door, we have learned that it is best to talk about (and teach) franchise partners selling their business right from the start. Why?

Because it will ultimately happen.

As my Vice President of Operations, Val Litwin explains, "I train our franchise partners about selling their business right in training. Why? Because to sell your business and get the highest amount of value, you have to build your asset. And if the franchise partner builds their asset the right way, they will always be able to sell their business for a higher value. And there are some key assets in this business that they have to build that a buyer will look for."

So, to maximize the value in your franchise, focus on some of these key assets right from the start:

• You want to build the systems so that the business can run independent of you. This is classic e-myth stuff. Your business will be much more valuable to a buyer if it doesn’t depend on you. Your franchisor should have great systems to follow to run your business, and it is up to you to follow them (or not, like many choose!). Follow them if you want to build a business independent of you.

• The size of your contacts and strategy deployed to be reaching these contacts. You need to build a powerful database of contacts. Think about it: for many brands (especially service brands), a new buyer's success will depend on your ability to systematize the keep in touch process to your clients, old and new, and potential clients. They want to buy your relationships, but if these relationships (your business) are dependent on you and your brain, then this isn't going to be a business that someone wants to buy.

• Your community presence; your brand. Reputation in your community is a key. When you build a great brand in your community, people will always pay more.

• You want to be thinking of your business 3 years ahead. What do you have to do/build/systematize in the next 3 years? Because no one is ready to sell their business when they want to. You have to spend years preparing for it.

Do you see a correlation here? If you do these things, you will also have a successful business. And people will pay much more for a successful business.

I think Val put it best when he said "One day, you deserve to sell your business." Make this day a celebration by building your company so that you can obtain top dollar. And, if you choose not to sell, it’s because you are probably having too much fun, and that is great thing!

John DeHart
Co-founder and Co-CEO
Nurse Next Door
www.johndehart.com

Learn more about Nurse Next Door at topfranchises.franchisebusinessreview.com.

Log in to leave a comment. If you're not an FBR member yet, click here.
Email:
Password:
	Keep me logged in
Comment:

You must register to post a comment. Registration is quick & easy. If you are already an FBR member, click here.
First Name:
Last Name:
Email:
Password:
Confirm Password:
Receive updates, notifications and special offers from Franchise Business Review
Comment:
Verification:	[ New Image ]