The aim of building a business is to ensure that it grows with you. When you are ready to exit the company, you can sell your business or hand it over to your family.

This is never realised for many businesses. Most companies close down with no sale at the end of a good lifespan.

Sweat, Scale, Sell

Pavlo Phitidis is adamant that this does not have to be the case. In his book called Sweat, Scale, Sell, he outlines the steps companies need to take to ensure they don’t make silly mistakes along the way.

It would help if you position your business so that when investors or buyers come knocking, you get the best deal available to you at the time.

So many entrepreneurs do not separate their private and business assets, and this merging never bodes well for the long term.

By paying less tax, putting too many personal expenses through the business, and not showing profits, the company’s value will be low.

Invest in what is important

Invest in proper accounting, bookkeeping, and auditing, even as a small business. You can ensure you will be considered for credit, investments, and eventually a sale.

It may be tempting to keep everything in one pot, but this short-sighted approach can leave you having to close the doors of your business and not have anything to show for it after the fact.

A well-built business can show an increase in growth year on year, increasing staff, profits and sustainability.

Split your expenses

The second mistake that people make is by them being the center of the business. You cannot sell and exit a company if it relies on you being part of the business. As a sole proprietor, this isn’t easy. If you start a business and don’t train staff to run it, you will be left high and dry.

Ensure you have a succession plan in place. You focus on the macro strategy of the business and leave the everyday nitty-gritty up to your staff.

When it is time to exit, you can be assured that the business can continue to thrive without you. Thereby giving yourself the permission to retire in peace.

Bizcash is here to assist with your company cash flow, save on costs and to help you grow. For more information on our Invoice Discounting or Business Loan products, or arrange for a demo on the financial dashboard, get in touch here. Follow our social media pages here for tips for small businesses.