Entrepreneur – What Value Does Your Business Have?

Jan. 7, 2015
The entrepreneur build his business, because he had a dream. And now he should face reality!

It is probably not worth what you think it is.  There has gone a lot of water under the bridge since you as an entrepreneur started your successful venture. Sometimes time between your business start up and business succession is even 40 years, or more.

The world hasn’t stopped turning and many things have changed. A business that in the beginning did not have the smallest threat or risk, has become a risky business, in the worst case. Nobody can polish the crystal ball shiny enough, but every now and then a “health check up” for your business is worthwhile.

One good way of doing this, is putting your business for sale and let for instance a private equity buyer run a due diligence. They will be blunt enough to tell you their view on your business. Listen carefully, because it could reveal a lot issues you need to pay attention to.

Just recently, I was advising a successful a 70 years old entrepreneur. The sales had slumped. It was the first real crisis for this entrepreneur. Sales had gone down really fast, 35% in one year. He never before had to make any sales efforts, business was just coming. But he continued believing that business will come back just like that.

I managed attract a family office to make a very lucrative offer for his business, however he declined. Now the business is in an even worse situation. He thinks he can fix it himself!

So now all potential investors consider the business worthless, because so much cash is needed for investments.

Entrepreneur, think early about your successor and plan it well. Do have a plan B or even C, if plan A is suddenly not viable anymore.

There are hundreds of thousands interesting SME businesses in Europe waiting for a successor. But, entrepreneur first you have to make a decision and potentially face the music!

Popular Sponsored Recommendations

Learn How Manufacturers like 3M Cater to Digital Buyers to Increase Sales

Aug. 13, 2023
In this article, you'll learn how manufacturers can balance educating and guiding their buyers through their complex buying process with a digital first approach to product discovery...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

MES vs. Operations Platforms: Buyer's Guide

Sept. 19, 2023
Now more than ever, manufacturers are rethinking legacy MES's role in their operations. This comprehensive guide compares traditional manufacturing execution systems and operations...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!