Hello, gentle reader!

Those following along the last 3 months, will know that this is the wrap-up column for our 10-episode masterclass on the subject of building value in your business. Over the past 3 months, in this series, I have focused on the 8 drivers of company value using the Value Builder System as our framework. Joining me for several episodes in this masterclass has been Louise Motuzas, Co-founder of Thrive Business Consulting, and an accredited exit planner. Between us we have focused on the drivers one at a time.

In this final column, I want to refocus on the idea of making an intentional exit from your business. This is particularly important as we head into another planning season, in a bear market. I want to encourage mindfulness and intentionality. And not just any exits but cash rich exits!

Why is it important to be thinking about your exit?

So, why do you want to be thinking about your exit? Maybe even before you've fully got your business off the ground? It's because every business owner is going to have an exit. Whether a sale to another business, a venture capital firm, transition to another individual in your family, or even a wind down… we all need to exit. Do you want your exit to be “by accident” or “on purpose”? And I would say, let's make every exit an “on purpose” exit. And let's further make it a cash rich exit. Whether that is going to be in three, five, or 10 years, how do you get the most value out of your business?

I'm going to lean on the Value Builder System and the eight drivers of company value. Here is a reminder of what they are.

The 8 drivers of company value

• Financial Performance - The financial history that reflects revenue and profit is a crucial element. Additionally, it also shows your record-keeping abilities to ensure potential growth.
• Cash Rich Exit - The likelihood to grow a business and determine the growth rate for the future prepares brands for a cash-rich exit when selling to third parties.
• Switzerland Structure - This is the company dependency structure. It helps to assess if your business has a low or high level of dependency. Brands with higher independence with respect to employees, customers, suppliers, and others have high company value.
• Cash Flow - The ability of a brand to attract and acquire more cash.
• Recurring Revenue Hierarchy - The proportion of the revenue automatically generated in an annuity-type structure.
• Monopoly Control - A brand's unique selling proposition. The ability to stand out from competitors with a competitive advantage.
• Customer Satisfaction - It identifies if the brand has high repurchase numbers from customers and high referrals.
• Hub and Spoke - The number of decisions that have to pass through the business owner to operate a business smoothly.

To truly become an entrepreneur who has built value in a business, you need to understand the foundations of what makes a business valuable. I have talked about the value builder concept a number of times over the past couple of years. Many of you know that my business niche is providing financial advisory to support cash rich exits for businesses. I'm on a personal mission to double the number of Self Made Millionaires in Canada. Normalizing the building of wealth through your business is close to my heart.

It’s never too early to set the foundations in place!

If you enjoy the audio medium, you’ll find a lot more in the podcast episode here.

Have a listen… https://iamamillionairesonowwhat.libsyn.com/ep249-the-importance-of-intentionality-in-business-exits-even-in-a-bear-market

This Value Builder masterclass series is sponsored by “Elevated Conversations” with me, Colleen O'Connell Campbell, a roundtable mastermind for co-founders and business owners who want a cash rich exit.

Final invitation to an Ottawa community

If you’re in Ottawa, this is the last call for “Elevated Conversations”, which originated in 2018 where I brought smart investors and business owners to talk about interesting topics in technology and finance that were disrupting our world. With COVID and the end of dinner parties, we moved to virtual roundtables and now I’m bringing back masterminds in person.

The event is on October 26, 2022, and is by invitation only.

Let me know via LinkedIn or email if you’re interested, and you can still join as a value member of my Ottawa community.