3/6/2021 Tip: Most Entrepreneurs Forget to Ask This | Growthink

3/6/2021 Tip: Most Entrepreneurs Forget to Ask This

Today’s Quote

“Business opportunities are like buses, there’s always another one coming.”
~ Richard Branson

 

Today’s Tip

Once they launch their companies, most entrepreneurs fall into a very dangerous trap. What happens is that they get very myopic; they get so close to their businesses that they fail to see the bigger picture.

So, they run their businesses on a day-to-day basis, constantly fighting fires and striving to squeak out a little more profit each year than they did the year before.

Conversely, the most successful entrepreneurs ask two key questions that others don’t.

The first question they ask is “What is the end game?” Then they ask sub- questions such as: Is my goal to run this company until I die? Do I want to eventually sell my company? Or do I want to pass it down to family members?

The second key question that the most successful entrepreneurs ask is “How do I build VALUE that multiple acquirers would want?

Building value is different than simply running a business. When you simply run a business, typically your goals are to keep the lights on and earn a profit. When seeking to build value, you set different goals.

So, in addition to thinking about your end game, create a list of the factors that multiple potential acquirers would want to see in your company. Maybe it’s significant revenues. Maybe it’s a high profit margin. Maybe it’s unique products or intellectual property. Etc.

 

Today’s Resource

Are You Irresistible to Acquirers?

Most entrepreneurs I know start businesses so they can eventually sell them.

That’s where the real money is made.

But, to fetch the highest price, your business needs to be irresistible to acquirers.

Is your business irresistible?

Click here to find out how to build a business that’s irresistible to acquirers.

 

Trivia

Today’s Question: Which now-famous company was first discussed in a student’s college term paper, was panned by the professor, and didn’t launch until many years later?

Previous Question: Which company used materials recycled from its own waste to build a new international headquarters?

Answer: Duracell

More than half of the new building’s materials were salvaged waste materials from the company’s manufacturing division, including flooring made from crushed glass and broken light bulbs, a roof made of recycled aluminum, and ceiling tiles made from old newspapers.

Not only did this show Duracell’s commitment to the environment, but it resulted in a really cool work environment for its employees.

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