Dr. Stephen Covey’s The 7 Habits of Highly Effective People has inspired millions to lead more intentional and impactful lives. Among his timeless principles, the 7th habit, “Sharpen the Saw,” stands out as a crucial reminder of the importance of self-renewal. For business owners considering selling their business now or in the future, this habit isn’t just relevant—it’s transformative. In this post we will explore how this principle of sharpen the saw can be a key to success when selling a business.
“Sharpen the Saw” is the practice of taking time to invest in yourself and your tools—your knowledge, skills, and resources—to remain effective and prepared for what lies ahead. But in the context of business ownership, it takes on an even deeper meaning. It’s not just about making the business better; it’s about making your life better too.
What Does “Sharpen the Saw” Mean When it Comes to Selling a Business?
Covey uses the analogy of a woodcutter sawing down a tree. If the saw becomes dull, the work takes longer and demands more effort. The logical solution? Stop sawing and sharpen the saw to restore its effectiveness.
For business owners, the “saw” represents your tools, resources, and personal capacity to manage challenges. Sharpening the saw means prioritizing your well-being, professional growth, and business readiness to ensure you’re operating at your peak. It’s about finding balance in four areas:
- Physical: Rest, health, and energy.
- Mental: Learning and staying informed.
- Social/Emotional: Building relationships and resilience.
- Spiritual: Reconnecting with your values and purpose.
When you make time to renew these aspects of yourself, you become a more effective leader, capable of steering your business—and your life—toward success.
Why “Sharpen the Saw” is Crucial When Selling a Business
The decision to sell a business is one of the most significant choices an owner can make. It requires clarity, preparation, and a readiness to adapt to a process that can be both exhilarating and demanding. Here’s why sharpening the saw matters so much during this time:
1. Positioning Your Business for Success
A well-prepared business attracts better offers. This includes organizing financial records, streamlining operations, and ensuring a strong market position. Sharpening the saw here means taking a step back to analyze where improvements can be made and investing the time and resources to enhance your business’s value.
2. Staying Mentally Sharp
Selling a business involves complex negotiations, due diligence, and legal considerations. Mental sharpness helps you navigate these processes with confidence. Continuous learning—whether through market research or consulting experts—ensures you’re equipped to make informed decisions.
3. Fostering Emotional Resilience
Selling a business isn’t just a transaction; it’s often an emotional journey. You may feel a mix of pride, fear, and even loss. Sharpening the saw means cultivating emotional resilience through mindfulness, support networks, and self-care, so you’re prepared to handle the highs and lows of this process.
4. Clarifying Your Purpose
For many business owners, their identity is closely tied to their business. Sharpening the spiritual aspect of the saw involves reflecting on your core values and what you want for the next chapter of your life. This clarity can help you define your legacy and set meaningful post-sale goals.
Sharpening the Saw is About More Than the Business
While sharpening the saw improves your business’s readiness for sale, it also improves your life. A balanced, well-rounded approach to renewal ensures that you emerge from the sale as a healthier, happier, and more fulfilled individual.
Reclaiming Time
The act of sharpening the saw forces you to step away from the constant demands of business. This pause creates space to reconnect with your passions, family, and personal aspirations—things that may have taken a backseat during years of business ownership.
Planning for What’s Next
Selling your business is a transition, not an endpoint. By investing in yourself, you’ll be better positioned to embrace the opportunities that lie ahead, whether that’s retirement, a new venture, or simply enjoying life’s pleasures.
Leading by Example
Taking care of yourself and your business sets a powerful example for employees, colleagues, and family members. It demonstrates that success isn’t just about hard work—it’s about working smart and prioritizing what truly matters.
Steps to Sharpen the Saw as a Business Owner
Dedicate Time for Renewal: Schedule time each week for activities that recharge your energy and focus.
Evaluate Your Business’s Readiness: Seek professional advice on areas to improve before selling.
Invest in Learning: Attend workshops, read industry updates, and consult experts to stay ahead of the curve.
Reconnect with Your Vision: Reflect on your personal and professional goals to ensure they align with your next steps.
Build a Support Network: Surround yourself with advisors, mentors, and loved ones who can provide guidance and encouragement.
Conclusion
Dr. Stephen Covey’s 7th habit, “Sharpen the Saw,” is a timeless principle with profound relevance for business owners. It is easy to see why this principle of sharpen the saw can be a key to success when selling a business. Whether you’re planning to sell your business now or in the future, taking time to renew and prepare ensures both your business and your life are positioned for success.
Selling a business is more than a financial decision—it’s a personal journey. By sharpening the saw, you can approach this milestone with clarity, confidence, and purpose, ready to embrace the next chapter with open arms.
Read more about the power of vision when selling a business.
