Selling a business for its maximum value isn’t a last-minute event—it’s the result of years of deliberate preparation. Jessica Fialkovich, President and Founder of Exit Factor, explains that most business owners need at least three to five years to strengthen the elements that make a company attractive to buyers. “Buyers evaluate a business based on its health and future potential, not just current revenue,” she notes. The key lies in developing five strategic value drivers—Profitability, Leadership Independence, Recurring Revenue, Progressive Value, and Low-Cost Growth Opportunities—that reduce risk, increase scalability, and demonstrate long-term sustainability.
Profitability is the most direct factor influencing sale price. Businesses with strong margins signal efficient operations and healthy management, while those lagging behind industry benchmarks can increase their appeal by setting measurable, realistic goals to improve margins over time. Companies that run smoothly without the daily involvement of their owner are far more attractive to buyers, who want to acquire systems and teams—not an individual. Building a self-sustaining leadership structure increases confidence that the business can thrive long after the sale.
Recurring revenue models are another key to predictable growth. Subscription, membership, and contract-based services provide buyers with clear financial forecasts and stability. Fialkovich cites small but effective examples, such as a dog grooming business that turned a $19 self-service offering into a $33 monthly membership program—creating $5,000 in recurring revenue within the first month. Complementing this is the principle of Progressive Value, or creating multiple ways for customers to spend with the business. Upsells, service add-ons, and maintenance programs help increase customer lifetime value while showing buyers that growth opportunities exist within the existing client base.
The fifth driver—Low-Cost Growth Opportunities—focuses on scalability without heavy investment. Buyers favor businesses that can expand quickly and efficiently. Demonstrating growth potential through simple, cost-effective strategies—like extending service hours or launching additional product lines—reinforces a business’s appeal and its ability to deliver fast returns. Together, these five drivers form the foundation of a sustainable, growth-ready enterprise.
Fialkovich’s overarching message is that the most powerful investment an owner can make isn’t in technology or assets—it’s in time. Improving these value drivers requires consistent focus and strategic action over several years. Businesses that do the work early present themselves as lower-risk, higher-reward opportunities, commanding stronger offers and smoother negotiations. By building profitability, independence, and growth potential into the core of their operations, owners can confidently position their businesses for a premium sale when the time is right.
This article was originally published by Entrepreneur.