This one can be tough to do – not only from a business standpoint; but, also from an emotional standpoint. You’ve done things a certain way – YOUR WAY – for a long time. But, you need to ask yourself, “As a business owner, how vital am I to the day-to-day operations of the business? Who will a new owner be able to turn to for help running the business after I leave?” Because of these questions, which WILL be posed by the buyer, you should have a succession plan in place before going to market.
The end result of a solid succession plan will position the business closer to being “turn-key and a prospective buyer will usually feel much more at ease in pursuing a purchase. In addition, delegation of “owner’s tasks” should help eliminate certain cashflow/payroll adjustments that might adversely affect the value of the business due to the need to bring on additional employees/wages.