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Getting your small business ready to hand off – or sell – and the steps you can take today to get ready, whether that day is soon or far off.
For construction and contracting company owners, the business you’ve built from the ground up over many years feels deeply personal. You’ve invested countless hours perfecting your trade, building client relationships, and refining processes. But there will likely come a day when you’ll want to retire and pass your “baby” on to someone else. Are you truly prepared for that transition?
Brad White, chief operations officer at VARC Solutions, a QuickBooks Solution Provider, recently shared steps construction business owners should take now to prepare for an eventual business transition or sale on the Constructing Growth Podcast. White emphasized the importance of being intentional if you want to create a business with maximum value to hand off or sell down the road. As he put it, “You're not just going to wake up one day and be ready to sell it.”
So what should you do to set up future success? White pointed to a few key areas:
Get your systems in order
According to White, potential buyers want to see “solid books” with proven revenue streams and predictable growth. As a QuickBooks Solution Provider, VARC Solutions helps businesses with their bookkeeping and accounting.
Buyers want visibility into sales pipelines and contracts, he says. Having your systems in order also ensures continuity if you hand off leadership internally to a team member.
White suggests assessing if your tech stack – including accounting software – positions you for scalability over the next decade or more. Opting for a mainstream platform like QuickBooks that supports integrations provides maximum flexibility, he adds.
Build a reliable team and delegate
For many construction company owners, letting go presents the biggest emotional hurdle. After pouring your heart into the business for so long, handing over the reins feels daunting.
“You have to have people in place that can make decisions” to walk away and still have things run smoothly, he emphasized.
While you once wore every leadership hat, identify emerging leaders within your teams who can take on decision-making authority. Empower them to operate more autonomously and avoid micromanaging so that one day, the business won’t crumble in your absence.
“Being able to hire good people. educate them, train them, develop them so that they can ultimately help you and, eventually, replace you is key, as is being able to empower those people," he said.
Enlist expert guidance on major decisions
Running a successful construction company requires specialized expertise in everything from building codes to selecting durable materials. Yet strategic decisions related to finance, systems, transactions, and legal issues sit outside most owners’ primary wheelhouse.
White stresses the value of turning to trusted advisors before making major moves that impact the future of your business. Outside experts such as QuickBooks Solution Providers bring invaluable perspective on avoiding pitfalls and maximizing value over the long run.
For construction company owners seeking to build a legacy, prioritizing the scalability, reliability, and flexibility of your business now allows you to pass the torch smoothly when the time comes.
With early planning, you can set up your “baby” for success under new leadership while finally enjoying the sweet taste of retirement yourself!
Get in touch with a QuickBooks Solution Provider for an assessment of how your business can protect itself against supply chain and other risks.
All opinions and advice expressed here are personal and do not represent those of Intuit QuickBooks. We recommend that you work with a professional to assess your specific business needs. Additional terms, conditions and fees apply with app integrations.
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