Andrew Gazdecki explains what it actually takes for a founder to be ready to sell their business. Most founders focus on revenue and profit, but buyers care about whether the business can run without you.
How do I know if my business is actually ready to sell? Put yourself in the buyer's shoes, what they're going to look for. If it's a financial buyer, they're going to put a multiple on the revenue or on the profit. And if you have these things in mind of what your ideal exit looks like, start thinking about the transition. The transferability of the business is important. If you don't have any of these things in mind and a buyer asks you what's the next steps, you're not ready. If you can't explain what your ideal offer looks like, your ideal outcome, ideal transition looks like you're not ready. Have these things in mind and you'll know you're ready. The buyer knows you're ready. I think once way to look at it too is put yourself in the buyer's shoes and ask, could you take over this business if you knew nothing about it? If you know nothing about it, how do you start to learn about the business? Is there a PNL that you don't have access to stripe anymore? You don't have access to the sensitive HubSpot, all the customer lists? Is the buyer able to learn all these things? And if they aren't, then you're not ready.
The Buyers Who Made the Move: What They Bought, How They Did It, and What Happened Next
