Rule 1: Delegate.
Many new companies revolve around their founders; a business built to flip cannot. "You want to build a culture, not a cult,". Part of that is distributing responsibilities throughout the organization. The buyer needs to know that the business can survive without the founder, and the founder needs to concentrate on growing the company, rather than taking care of day-to-day operations. Make sure to use a software program that list what each person's responsibility withing the company. This will help the potential buyer understand the day-to-day operations of each salesperson, director, key staff members etc.
Rule 2: Ability to Scale.
Startups get acquired because the acquirer believes they can scale up the company, "If the company is held together with duct tape and baling wire, it won't scale. Even though they start small, entrepreneurs have to think big from day one." Key areas to pay attention to when trying to determine and scale your business-Get the basics down. ...Automate Everything. ...Boost marketing. ...Outsource non-essentials. ...Keep an eye on social media. ...Excuse yourself. ...Hire the right people (and only the right people).
Rule 3: Be Transparent
It's not just the product concept that needs to be simple, but the business structure, too. The founder's own investment in the company he or she is attempting to flip must be free of entanglements. One, founders must learned to keep their transactions transparent and to track them diligently.
It's easy for entrepreneurs to get sloppy about putting money into and taking money out of their own company. What's more, if founders are arguing about ownership, the buyer is likely to balk. Be cautious that anyone planning to sell should avoid commingling of personal and company funds.
There is no better feeling when your start-up is acquired for millions of dollars and as the founder you know that you is essential to have an exit plan in the beginning so you should start with the end game in mind. Ready to get the most out of your business. Sign-up for a weekly dose of free business resources to scale your business to the next level.