Building A Business To Sell: The Untold Strategy Of Successful Freedompreneurs
There's a little-talked-about strategy in the realm of entrepreneurship: building a lifestyle business to sell it. But why is this path less traveled? And how does one even begin to embark on such a journey? Recently the founder of The Big Exit, Lien De Pau, was a guest expert on the 'Grow to CEO' podcast show hosted by Rose Radford, where Lien shed light on this very topic. Here's what we gathered from their enlightening conversation.
The Black Hole In Entrepreneurial Education
While the basics of starting, growing and scaling a lifestyle business are often discussed in the business education arena, building a business to sell remains a gray area. Lien observed that although there are resources to assist with growing and scaling, there's a knowledge gap when it comes to making a business attractive to potential buyers.
The Tech World's Unique Approach
Interestingly, there's one niche where the narrative is different: the tech world. Especially externally-funded startups, such as those supported by angel investors or VC funds, are often built with a specific exit strategy in mind. This focus arises because these investors typically expect an eventual exit strategy.
Why Don't Freedompreneurs Plan To Sell?
According to Lien, most entrepreneurs either:
Start a business out of passion.
Aim to escape the traditional workforce.
Focus on revenue growth, with specific milestones they want to hit.
Few consider the possibility of selling their venture. And while there's no right or wrong approach, not contemplating an exit strategy can influence the company's trajectory.
Why Consider Selling?
Selling your business can serve various purposes:
Freedom to explore other passions or ventures.
A lucrative final paycheck after years of effort.
The drive to create a new masterpiece.
A change in life circumstances or priorities.
There's no one-size-fits-all answer. Every entrepreneur's reason is valid, from simply being bored with the current venture to desiring a significant financial windfall.
Embracing The Shift In Perspective
During the interview, Lien emphasized that it's entirely acceptable for passion-driven entrepreneurs to outgrow their initial interest in a business. Personal growth and life changes can lead to evolved goals. In such cases, selling the business might be the most beneficial decision, personally and financially.
The Potential Of A Business Exit
A successful business sale doesn't just equate to pocket change. Entrepreneurs can secure multi-million-dollar deals with the right strategies and an appealing business model. Such a substantial sum can ensure financial freedom.
Conclusion
Building a business to sell isn't a strategy that suits everyone. However, as the entrepreneurial landscape evolves, it's essential to be aware of all available paths. For those willing to explore this avenue, the rewards can be immensely gratifying.
