Recurring revenue businesses are very saleable assets. After all, who doesn’t love perpetual, predictable income?
Planning an exit from day one, here are 5.5 ways to ensure your successful transition from shareholder to cash-holder:
1: Offer complimentary products/services to those of your competitors, and approach them to discuss a “joint venture”. These can often mature to full-blown takeovers
2: Choose a niche which is relatively un-crowded, so your presence is easily visible to potential suitors
3: Build your business around a handful of products (maybe only one!) so they can easily see what they’re buying, and why they’d want to
4: Appoint an exit strategist. Don’t contact target purchasers directly, as you can look desperate and give away value unnecessarily. Besides, you should be still running the show, not spending your days hawking it around!
5: Make yourself redundant. Anyone buying your business will want to see that it can operate without you. Automate everything, and build customer support that doesn’t involve you
5.5: Give yourself time. Purchasers can sniff desperation, and will crush your ideas of value if they do.
Author: Jonny | Your Exit Starts Here