‘Owning a small business is as exhausting as running a marathon’
You would never start a marathon without expecting to finish it, so it amazes me how many people launch a small business without ever having a plan to one day exit it, Mark Bouris writes.
You would never start a marathon without expecting to finish it, so it amazes me how many people launch a small business without ever having a plan to one day exit it.
And make no mistake, owning a small business is every bit as bruising and exhausting as running a marathon — and every bit as rewarding when you finally get to the finish line.
But at some point, you need to stop and ask yourself exactly what you’re doing it for.
What’s your goal? Because let me tell you, if you just want to work, then there are much easier ways to do it.
Research released this week confirmed small-business owners work harder and longer than any other industry in Australia, with 25 per cent of operators putting in more than 50 hours over seven days every single week, and more than 15 per cent committing more than 60 hours per week.
What’s more, there is no safety net if things go wrong.
You can forget a redundancy package if it doesn’t work out. There’s no sick pay or long-service leave, and no holidays or carer’s leave, either.
In fact, up to 25 per cent of small business owners in Australia don’t even pay themselves superannuation, something any normal employer is legally obligated to handle for their employees.
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Most people think their business will be their super, but have no real idea what’s required to prepare one for sale, or how to make it as attractive as it possibly can be to a potential buyer.
Whenever you start a business, you should tell yourself that it is always for sale — for the right price, of course — and run it like you’re preparing to put it on the market.
And what does someone wanting to buy a business look for? Strong cashflow, minimal debt, solid profits and a bright future.
And whether you ever even end up selling, don’t they sound like attributes you should be aiming for anyway?
It’s no different to selling a house.
How many times have people put up with a long list of niggling issues with a home — be it flaking paint, an overgrown garden or simply too much clutter — for decades, only to rush to fix everything just before they put it on the market?
We put up with all these problems, only to finally fix them for the next owner.
It’s one of the key things my Mentor Masterclass tour will be focusing on, because it’s among the most important information a small-business owner needs, but is never given.
And helping our small businesses be more successful is the best thing we can do for our economy and future generations.
Your business is an asset into which you will be sinking a huge amount of your time and energy over many years, so it is incredibly important that it is always in the best possible shape for sale at all times.
Because a saleable business is a successful business, whether you put it on the market or not.
* Mark Bouris is chairman of the SME Association of Australia
* Mark Bouris, chairman of Yellow Brick Road (ybr.com.au), is one of Australia’s most successful entrepreneurs. He writes a column for The Sunday Telegraph, sharing his extensive business skills and answer your questions about doing good business.
* Ask Mark at mentored.com.au
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