I remember very clearly one of the best pieces of advice I ever received during a board meeting at my previous software company.
“Mark, you need to start running your business as if you were planning to sell it in the next year or two.”
At first, this advice felt contradictory. Admitting you might want to sell your business can seem reductive — almost disloyal. The irony, as I learned to my eternal gratitude, is the opposite is true.
A business that someone wants to buy is a business you will want to own.
Why Sale-Ready Thinking Matters
The point behind the advice was to create best practices in every department. To build processes that would withstand scrutiny. As brutal as it can be, due diligence is one of the most effective consultative exercises you and your business will ever experience. The shame is, it usually only happens when you’re ready to exit.
But with the right mindset and insights, you don’t have to wait until then.v By the time we eventually sold our last business, we’d spent years conducting forensic analysis across every function. One of the most rewarding comments from our acquirer was how unusual it was for them to see a business “so obviously well run.”
It Always Starts with the Numbers
You know the drill. You spend hours crafting a high-quality proposal — outlining your value proposition, your ROI predictions, the reasons you’re the best choice.
And what happens? The recipient skips straight to the numbers.
We like to pretend this doesn’t happen. But it does. The sooner we accept that — and lean into the opportunities it provides us — the better.
Management accounts have long been a frustration for me. Accountants often feel they’ve done a great job handing over a factually perfect summary — good, bad, or neutral. But too often, it’s just ‘bean counting’.
A Balloon and an Accountant
A man in a hot air balloon drifts off course. Spotting someone below, he shouts: “Hey! Can you tell me where I am?”
The man on the ground replies, “Of course. You’re about 25 feet above the ground, heading northeast.”
“Ahh,” says the balloonist. “You must be an accountant.”
“Yes, I am,” replies the man. “But how did you know?”
“Because the information you gave me was factually correct — but in no way helpful!”
With sincere apologies to my accountant friends, you get the point.
Sub note: Not all accountancy firms are like this. I work as a non-exec for one firm in particular that is fully focused on value not just reporting. Look for accountancy firms that can demonstrate that they understand these points.
From Data to Decisions
It’s time we moved away from plain data presentation and focused on the stories the numbers tell.
- Who are our most valuable clients, and how do we attract more like them?
- What factors most impact profit and growth, and how can we improve them?
- Where should we invest in growth for the highest return?
- Which products or services are overperforming — and which are underperforming?
Facing the Truth
When you start looking at your business through an investors or acquirer’s eyes, you can’t avoid a few uncomfortable truths. The obstacle is the way.
Too many businesses ignore weaknesses. But surfacing them and taking action makes your business:
- More valuable to investors and buyers
- Better run for you and your team
- More rewarding for your customers
Run your business as if you were planning to sell it - and you may never want to let it go.
…But be warned, others will still want to buy it and that’s not a bad thing.
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