The most vital question an Entrepreneur must ask him or herself is, ‘What is the value I will gain if I sell my business?’
I know this sounds strange for a start-up to consider, especially when you are starting up! But you must envision the outcome of your business in order to make sure you are launching towards the correct target. So consider the growth factor in your business. How you grow will be the primary selling point of your business, and therefore the maximum value of your business.
The second question you must consider is — What kind of value can I create within a business for it to become valuable for a buyer, investor or partner?
If you need to raise capital for your business it is important to not only have a big picture but also a well strategized and understood tangent picture to present to investors or prospective stake holders. Once aligned and visible from the top and sides, raising capital becomes easier as the detailed blueprint instills more confidence than the idea by itself.
Finally, to grow your business you must ask yourself — Which tangent needs to grow and which can stay neutral?
As you look to grow you need to consider what tangents you can create between the core of your business and the marketplace. Scott Anthony, on the Harvard Business Review blog asks this question, Why Would Amazon Want to Sell a Mobile Phone? In his post, he talks about the massive growth of Amazon – do you remember it started as an online bookseller?! Amazon.com is the king of the jungle when it comes to tangential business. Do you have tangent checks and balances system in place? Have you any systems in place that measure the effect of performance or non-performance of one tangent on another? This is where most gaps, losses, loss of opportunity occur. This will clarify the gaps to be bridged, so that they can support each other. A continuous check on tangent business performance and balance is essential to your success.