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The sales-oriented nature of the staffing and recruitment industry almost guarantees that founders talk often and enthusiastically about the attractiveness of their business, valuations and equity transactions.
Much pub-talk is devoted to these subjects and the certainly of a magical “knock on the door”.
But there is no guarantee of an equity transaction for the sale of any business.
Founders must be prepared to be the owner of their business in the long term. And of course, that is a valid position – there is surprising longevity of ownership of recruitment agencies.
Keep options open
History tells us that the future is uncertain, and that even the best plans fail to eventuate in the manner and timing that was planned. Business owners need more options in how their future will unfold.
What do options mean? At a high level it can be thought of as options for the founder. If the focus is on building a great business, then choices emerge for the owner.
For most owners, continuing to run the business is likely to be the best option available. When analysed, most have built a business that gives a good combination of personal satisfaction, freedom, and wealth creation. Put the next plan in place and dive into the execution of that plan.
Some owners want to personally step back a little and can hopefully structure the business in that manner. Be present, be involved, but delegate a little more than before to free time and space.
The challenge is when circumstances guide you to departing ownership of the business. This situation requires proactive effort, and the results are not certain and not completely in your control.
Always ready
While it is a big topic in its own right, being always ready for an external party to investigate your business is strategically prudent.
Being always ready is not something that happens by accident. It is the result of continuous attention to details that your business open, honest and transparent. A good corporate citizen if you like.
It is reflected in many ways, including attention to all areas of sustainability, all areas of contracts and legal obligations, deep knowledge of the numbers and forecasts, and clear decision making if equity discussion is required.
This good corporate behaviour is an objective in its own right. Owners will have a better business with less risk, and at the same time be more confident in showing the business to others if the situation arises.
It still does not guarantee an equity result but does make the business more enjoyable to own while improving the attractiveness of the business to sell. All good outcomes.
