You never planned to build an empire. Perhaps you started freelancing to pay the bills, or launched a small side-project that somehow developed a life of its own. Years passed, and that initial venture has evolved into a thriving business with real value—value that could set you up for the next chapter of your life.
Welcome to the world of the “accidental entrepreneur.” If you’ve suddenly realised your business might be worth selling but have no idea where to begin, you’re not alone. Let’s explore how to navigate this unexpected but exciting crossroads.
From Passion to Potential Payday
Many successful businesses begin without grand ambitions. A graphic designer picks up a few clients, a home baker starts selling to local cafés, or a software developer creates a simple tool that gains traction. These ventures often grow organically, fuelled by passion and necessity rather than strategic planning.
The realisation that your business has significant monetary value typically arrives gradually. Maybe a competitor inquired about acquisition, a friend or business associate mentioned your company’s potential worth. Perhaps you’re simply ready for a change, seeking retirement or a new challenge.
Whatever sparked this awakening, the question remains: “What now?”
Exploring Exit Options
A good place to start is the various ways you could exit. Being blunt – all good things must come to an end…. Somehow you will ultimately have to do something – you either have to close it down or pass it on:
Strategic Acquisition
A competitor, customer, supplier or someone else in a similar industry might pay a premium if your business offers strategic advantages like market access, talent, or complementary technology. These buyers typically understand your industry and can see synergistic value beyond financial metrics.
Financial Buyer or Private Equity
These buyers focus primarily on your financial performance and growth potential. They might maintain your role temporarily while transitioning leadership or install their own management team. While sometimes offering lower initial valuations than strategic buyers, they may include performance-based earnouts that increase your total compensation or give you the chance to build something much bigger.
Management Buyout
Your existing leadership team might be interested in purchasing the business. This option often provides the smoothest transition for employees and clients but may yield a lower selling price due to financing limitations.
Employee Ownership
Selling to your employees often comes with tax advantages and ensures your company’s legacy continues. This approach typically requires a longer transition period but can be deeply rewarding.
Other Options
Of course that isn’t the full list, you might want to keep the business in the family or just liquidate it when the time comes. Whatever option you choose you will do well to start planning sooner rather than later.
Your Personal Journey
Perhaps the most overlooked aspect of selling an accidental business is the emotional process for you and your loved ones. Your identity has likely become intertwined with your company. Preparing yourself for separation is as important as preparing the business for sale.
Consider working with a coach or therapist who specializes in business transitions. They can help you process the complex emotions and develop a vision for your post-sale life.
Assessing Your Business’s True Value
All too often we meet people who take a naturally pessimistic view of their own success – “why would anyone want to buy this business?”. To get a clearer picture of what your business might be worth, take an objective look at various factors including:
- Recurring revenue: Subscription models or long-term contracts significantly increase value
- Client quality and diversity: Reliance on a handful of clients presents risk but other people might love your customer list
- Growth potential: Untapped markets or expansion opportunities is often a key factor
- Profitability: Evidence of steady or growing profits over several years is very attractive
- Intellectual property: Proprietary technology, methodologies, or brand recognition, or other ways you can defend your market position
- Operating systems: Good systems and effective processes that don’t depend on you personally
Preparing for the Exit
Once you’ve assessed your business’s value, there’s typically work to be done before bringing it to market:
Professionalise Your Operations
Many accidental businesses operate informally. Now’s the time to:
- Get your cybersecurity sorted and accredited
- Clean up HR and financial records and ensure they’re professionally maintained
- Ensure you effectively manage your cash flow
- Formalise contracts with clients, suppliers, and employees
- Address any legal or compliance issues
- Strengthen your management team beyond yourself
Reduce Owner Dependency
The most common challenge for accidental entrepreneurs is extricating themselves from daily operations. A business that can’t function without you is significantly less valuable.
Begin delegating key responsibilities and documenting your unique knowledge. This transition might take a while but can dramatically increase your selling price.
Enhance Your Growth Story
Buyers are typically investing in their future and pay premiums for growth potential. Identify and begin implementing strategies to expand your market, diversify your offerings, or scale your operations—even if you won’t be around to see them through.
Final Thoughts
The journey from accidental entrepreneur to successful business seller requires patience. It’s never too early to begin exit planning, but when you’ve arrived here accidentally, the best time to start is NOW.
Remember that selling isn’t your only option. You might restructure the business to run without your daily involvement, install a CEO while remaining as owner, or explore partial sales that provide liquidity while maintaining some ownership.
Whatever path you choose, take pride in what you’ve built. Your “accident” created value not just for you, but for clients, employees, and your community. That’s an achievement worth celebrating—and potentially capitalising on.
Journey 2 Exit
At Exiteers with have developed a structured approach to take you through the whole journey from initial planning to final exit. Journey 2 Exit is a 16-step process that provides further detail and support around what we summarised above.
If you think you might be sitting on a gold mine, we’d love to have a chat. Also, we’d love to hear other ideas and experiences you might have in this area.
