Godzilla Syndrome?

Selling a company is not the same as selling a car, or software, or white goods.

Most of us will never have the opportunity to sell a company. For the very few who get their company ready for sale, it is unlikely that they will ever make more than one or two sales per lifetime.

Some years ago, in Petes Weekly, I reflected on how stunned I was at the number of people who assured me “Just two more years Pete, and then I’ll be out of it!” And two years later (because I’m patient, and have a long memory) I would revisit them. “Just two more years Pete, and then I’ll be out of it!” It happened so many times that it began to sound like a chorus.

Let’s look at the natural progression of business for a few moments.

Most of us go out of business! Michael Gerber (The E-Myth Revisited) suggests that 96% of us (more than nine out of 10) won’t survive 10 years. That is a staggering statistic. Even more staggering is the number of us who don’t prepare for it. As a result we lose an immense amount of money.

Some of us sell our businesses. We usually get quite enthusiastic about selling the business when things start to look a little bleak. Actually, now that I think about it, things sure do seem to be looking a bit bleak right now. That’s why my friendly business broker reports that the number of enquiries he has received from people wanting to sell their businesses has gone through his roof.

We usually wait too late (now there’s a surprise) and as a result we lose an immense amount of money, if we’re able to sell at all.

Some of us die while in the saddle. At this point the business either stops (lack of preparation) or gets sold for a pittance (lack of preparation).

I’m hoping that there is a theme here. It seems to me that we are all fulfilling the Godzilla syndrome. (Godzilla, that fictional Japanese monster, was once a baby. And while it was a baby, nobody paid it much mind. But it was only killable while it was tiny. As it grew it became more of a problem, and eventually it was impossible to destroy.)

The two times in your life when you going to lose the most money in your business are when you close it or sell it. Right now that problem is a baby Godzilla (I hope) and should be relatively easy to deal with and cope with. You have time. Time to learn what to do, time to prepare, and time to develop alternative strategies. Right now the problem is important, but not urgent.

Time is the one thing you won’t when it becomes urgent.

Take some time off to find out all you need to know to prep your business for sale, how to clean the engine, vacuum the interior, and polish the hubcaps. You’ll be amazed at how much money you will save (or make) when you die, close, or sell.

Mark Corke is running his excellent seminars next month, on preparing your business for sale. Attend. Enjoy. And kill Godzilla while you can.