Published: September 10, 2007
Build to Own
By Joel Block
One of the great tragedies of the last 10 years is the large number of people who built companies with the expectation that they would be able to sell them immediately after they were launched. What is the problem with a strategy like this? Markets change, whims change, and the nature of business is always fluctuating. When you build a business with the intent of selling it to someone else, it's hard to build a substantial, excellent business.
A much better approach is to build the business that you want to own. When you want to own a business, then you build it to meet criteria that matter to you. Criteria such as: strong cash flow, excellent growth, loyal teams, products and services that you're proud of, and the like. A business that possesses these things will become a business that others will want to buy from you. Moreover, when the business is delivering cash flow to you, you won't end up in a situation in which you have to sell. When you don't have to sell, you can wait and find the perfect buyer who is willing to pay the perfect price.
So, as you are working hard every day to build your company, or as you're building your career, make sure that you are building a business that you want to own, because you may have to own it for longer than you thought. On the other hand, someone may come along and tell you that they want to own it more than you do, and the words that they use to tell you this will put a little jingle (or maybe a lot of jingle) in your pocket.
About Joel G. Block
Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker and advisor. To bring Joel into your company, please visit
www.joelblock.com or
www.growth-logic.com.
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