Prepare Your Business for Sale with Tracy Gunn

Tips, strategies and resources for the modern entrepreneur.

Straight Talk about Small Business Success with Salim Omar, CPA and special guest Tracy Keating Gunn. 

Tracy Gunn is a self proclaimed serial entrepreneur who has spent the last 16 years launching and running businesses. She decided to turn her business into a sellable commodity which allowed her to find a buyer within three months, and has helped her move on to bigger and better things. To put it simply, Gunn helps business owners prepare for an exit. She outlines the precise steps that ensure her clients are able to sell their businesses in a profitable way. She says that most business owners do not strategically work towards an exit plan. "Most of us are busy working, running the business, growing the business and putting out the fires."  According to Gunn, there comes a time when every business owner needs an exit plan, and selling your business is vital to achieving this.

What Are Some of the Things a Business Owner Can Do To Make Their Business Sellable?

• Think like a broker

"The broker's job is to sell the business with the least amount of work, as easily as possible for the most amount of money." Gunn's business did not check the boxes for brokers. This led her to developing her own exit plan. 

• Set a time frame

Gunn gave herself six months in which to make her business sellable. To do this she shifted her perspective—from growing to fixing.

• Have a clear picture about where you want to be after you exit your business. Find out who your buyers will be and the pieces that are missing that need to be fixed.

• Systematise the important aspects of your business.

Gunn suggests coming up with a roadmap. This roadmap should outline the essentials of what moves would make the biggest impact on your business. Reinforce and tweak this plan to make it work for you.

• Convert your business so that it becomes more 'turnkey' for the buyer. 

This means that your business should be able to run smoothly, without you at the helm. 

Gunn states that once you have done these things you free up more time for yourself, allowing you to develop and dedicate more time to other things in your life.

Advice For a New Business Owner 10 Years Away From Selling?

“Out of all of the businesses, historically that are listed for sale, up to 90% do not sell. This is why it's so important to think about what your exit plan will look like. Whether you are just starting out or are years in, an exit plan is an important thing to bring to the forefront.” According to Gunn, an exit plan is important because it could be the difference between retiring and working forever.

• Plan ahead

Have a plan or plan to fail? Plan enough in advance so that you have time to implement your plan in the case of unexpected events. Most entrepreneurs are great at dreaming, the big picture of where they want to go next. Being a business owner includes commitments. You want to serve at the highest level by handling it yourself. However this prevents you from protecting yourself from unforeseen circumstances.

What are Some Things a Business Owner can do Right Away to Start their Roadmap for their Exit Plan?

• An exit plan doesn't have to be fancy. Simple strategies and solutions designed for emergency situations are the best.
• Commit to five minutes and write it down- your roadmap does not have to be lengthy or intense. Keep it simple.

Final words of wisdom from Tracy Gunn

"You are not the success or failure of your business. You are the entrepreneur and there are 500 more ideas inside you. Do not get caught up in your identity and ego in the business." Tracy recommends building your business to be independent of you. This is where you will find your reward.

Check out The Straight Talk About Small Business Success podcast for more tips. Straight Talk CPAs is a CPA firm which provides virtual CFO, accounting and tax services to entrepreneurial businesses.