Mark Osborne argues that a business becomes valuable to buyers during the building phase, not at sale. Companies with defined processes, reliable systems, and disciplined payment practices attract buyers who can step in and run them smoothly. Chaotic operations that chase any client and lack structure are harder to sell and worth less.
I've always heard it said that, you know, when you buy a house, they say that you make money when you buy, not when you sell. And oftentimes with a business and sort of even planning that exit or the enterprise value, you make the money while you're building it, not when you're selling it. Because if you're building it with processes and systems that someone else could come in and operate effectively, That's a sellable, profitable business versus if you're just kind of running around, taking any client that you can, some that don't pay on time, some that don't pay ever, that's a lot harder business to sell.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
