January is the perfect time to think long-term about your business. While many owners focus on short-term goals like revenue targets or hiring plans, some of the most impactful decisions happen well before a major transition.
If you’re considering scaling your business or selling it in the future, whether that’s in one year or five—the steps you take now can significantly affect your options, valuation, and stress level down the road.
Here’s what business owners should be doing today to prepare for a successful scale or exit.
- Get Your Financials Buyer- (and Lender-) Ready
Whether you plan to sell or scale, clean financials are non-negotiable.
Potential buyers, investors, and lenders will look closely at:
- Accurate profit and loss statements
- Clean balance sheets
- Consistent revenue trends
- Clear separation between business and personal expenses
If your books are messy, incomplete, or inconsistent, it can delay growth opportunities—or lower your business’s value.
What to do now:
- Ensure your bookkeeping is up to date and accurate
- Reconcile accounts regularly
- Work with an accountant to review reports, not just file taxes
Clean financials don’t just help someone else evaluate your business, they help you make better decisions.
- Focus on Profitability, Not Just Revenue
Many business owners chase growth without fully understanding how profitable that growth actually is.
When scaling, thin margins can strain cash flow. When selling, buyers care far more about sustainable profit than top-line revenue.
What to do now:
- Identify your most profitable services, products, or clients
- Understand your true margins after all expenses
- Look for areas where costs can be reduced without hurting quality
A smaller, highly profitable business can be more valuable than a larger but inefficient one.
- Reduce Owner Dependency
One of the biggest red flags for buyers—and a major obstacle to scaling—is a business that can’t run without the owner.
If everything depends on you, growth is limited and selling becomes much harder.
What to do now:
- Document processes and workflows
- Delegate operational and administrative tasks
- Build systems others can follow without constant oversight
The more your business operates independently, the more scalable—and sellable—it becomes.
- Understand Your Business Valuation Drivers
You don’t need a formal valuation today, but you should understand what drives the value of your business.
Common factors include:
- Consistent and predictable cash flow
- Diverse customer base (not one or two major clients)
- Strong systems and processes
- Clean legal and tax compliance history
What to do now:
- Ask your accountant or advisor what impacts valuation in your industry
- Address risks early instead of waiting until due diligence
- Track key performance indicators that matter to buyers and investors
Preparation gives you leverage—whether you sell or scale.
- Plan for Taxes Before a Transition Happens
Scaling and selling both come with tax implications, and poor planning can lead to costly surprises.
Selling a business, restructuring, or bringing on investors can trigger significant tax events depending on timing and structure.
What to do now:
- Review your current entity structure
- Discuss long-term tax strategy with your accountant
- Plan transitions proactively, not reactively
Tax planning works best when it’s done years, not months, in advance.
- Align Your Business Goals With Your Personal Goals
Finally, scaling or selling should support the life you want—not just the business.
Ask yourself:
- Do I want more time freedom, or more growth responsibility?
- What does success look like for me in 3–5 years?
- Am I building a business I’d actually want to sell?
What to do now:
- Set clear personal and financial goals
- Revisit them annually as your business evolves
- Make strategic decisions that align with both profit and lifestyle
Clarity here prevents burnout and regret later.
Start Preparing Before You Have To
You don’t need to have a firm exit date or expansion plan to start preparing. The strongest businesses are built with intention long before a transition is on the table.
January is an ideal time to step back, evaluate where your business is today, and make strategic decisions that support where you want it to go.
If you’re thinking about scaling or selling in the future, now is the time to start planning—your future self (and business) will thank you.
