Navigating Business Growth and Sale with Leslie Hassler
Introduction:
In a recent episode of "Avant Garde Entrepreneur," we sat down with Leslie Hassler, a seasoned business strategist and founder of Your Business Rules. With over 17 years of experience, Leslie shared her insights on the critical aspects of business growth, scaling, and preparing for a potential sale. As the author of "First Then, Then That" and the upcoming "Scaling Rich," Leslie offers a wealth of knowledge for entrepreneurs looking to enhance their business's value.
Interview:
Trisha: Leslie, thank you for joining us today. Let's dive right in. What are some common mistakes entrepreneurs make when preparing their businesses for sale?
Leslie Hassler: Thanks for having me, Trisha. One of the biggest mistakes is waiting until the last moment to prepare for a sale. Business owners should start planning at least three to five years in advance. This proactive approach ensures they can demonstrate a consistent trend of growth, which is crucial for attracting potential buyers.
Trisha: That's a great point. Can you elaborate on the difference between growing and scaling a business?
Leslie Hassler: Absolutely. Growth is a one-for-one relationship, where each dollar invested yields a similar return. Scaling, on the other hand, is a one-to-multiple relationship, where investments can lead to significantly higher returns. Both stages are essential, but it's important not to rush into scaling without a solid foundation for growth.
Trisha: How should business owners approach compensation to ensure financial stability?
Leslie Hassler: Owners should receive regular pay, profit distributions, and a payout from the eventual sale of the business. This approach provides financial security and allows them to make informed decisions. It's crucial to view profits as a means to create personal safety nets rather than reinvesting everything back into the business.
Trisha: What mindset shifts are necessary for entrepreneurs to view their business as an asset?
Leslie Hassler: Entrepreneurs need to see their business as an asset, not just a job. This involves delegating responsibilities and empowering team members. By stepping back and allowing others to excel, owners can increase their business's value and prepare it for a successful transition.
Trisha: What are buyers looking for in a business today?
Leslie Hassler: There's a growing interest in smaller businesses with unique value propositions and subscription-based revenue models. Buyers want businesses that demonstrate consistent profitability and growth potential. It's not just large corporations; even individuals transitioning from corporate roles are interested in acquiring smaller businesses.
Conclusion:
Leslie Hassler's insights provide a roadmap for entrepreneurs aiming to grow and eventually sell their businesses. By planning ahead, understanding the nuances of growth and scaling, and adopting the right mindset, business owners can enhance their enterprise's value and ensure a successful transition. Whether you're considering selling or simply want to improve your business's performance, Leslie's strategies offer valuable guidance for sustainable success.
