Monday, March 22, 2010

Maintaining or Sell My Business?

The ultimate goal of starting a business is that companies will still live beyond the age of your own.

Unfortunately, this rarely happens. Most businesses die with the founders and their owners. When the owner retired or died, the company began to lack of business systems and management structure to maintain the business, what else to grow and develop.

The success of an entrepreneur is measured by the level where he can make himself of no further use in the company. From day one, your goal should be to build a business that can work without you. Strategies for success are: Entrepreneurs build business systems. Then they can hire professionals to run their business.

Once you achieve this, then you will have a dairy cow that can make money as a passive income every month. And although the company is maintaining a good thing, there are a number of reasons why these companies sell is also a good choice when the time is right.

All businesses go through a cycle. No business can continue to benefit. Because of economic changes and changes in humans, the competitive advantage a business can quickly be abandoned or taken over by new competitors. In order to maintain the business life, you should continue to be pumped full of fresh blood with new ideas to make your business young again every five or ten years.

If you can not continue to maintain the flow of energy needed by your business, you better sell the business while the top and has a high value. Usually sales results you get will be greater than if you continue to maintain the business.

One way to sell your business is to make public company, and after a certain period of time sell shares you hold in the stock market with premium prices very high (usually the market price above the 20 times earnings per share earned in the period years ago, or commonly known as P / E or Price Earning Ratio). Another way is to do a trade sale or sale of businesses in other words, you sold the company to a larger competitor or other related businesses.

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2 comments to “Maintaining or Sell My Business?”

Lydia said...

Nice blog & good post. You have beautifully maintained, you must try this website which really helps to increase your traffic. hope u have a wonderful day & awaiting for more new post. Keep Blogging!

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