The BizFilings blog covering business tips and trends.
Build a Company With the Intention of Selling It
Published on Feb 3, 2011
Read 'Build a Company With the Intention of Selling It' at 'Time to Start Up,' the small business blog by BizFilings.
When forming a company, entrepreneurs often become so enthralled by their new startup that they lose sight of their long-term goals.
While it is certainly a noble and effective strategy to remain focused on the process of building something new and offering a revolutionary product or service to the market, veteran entrepreneur Norm Brodsky argues that all startups should be approached as if they will ultimately be sold.
"Building to sell will lead you to ask a lot of questions you should be asking anyway but don't because you're focused on the day-to-day, month-to-month challenges of running a company," he writes in Inc. magazine.
For example, how are competitors pricing their products or pulling customers away from you? What are your growth projections in light of changing economic conditions? Should you get incorporated? If so, what kind of entity should you form?
A recent survey by BizBuySell showed sales of businesses grew significantly in the fourth quarter of 2010, suggesting the market will improve even more in 2010. As it does, even businesses that have no intention of selling should forge their strategies around such a possibility, because even the sale of a rival company can change your market.