Do these 7 things before selling your business!
Here are the 7 key things that buyers may look for when deciding on whether to buy your business. Considering these points can help you be ready when a qualified buyer comes along. Increase your chance of selling by having a solution ready for as many of the points as possible.
1. Training for a new owner.
Ask yourself this question, “would my business be able to continue without interruption without me?” If the answer is no, then you will need to look for a more hands on buyer, which is no problem, but offering training as part of the sale is going to be very attractive.
If the price you are putting on your business is based around your financials (adjusted net profit) your incoming buyer is going to need to see them. If your business’ figures are not strong, don’t worry, there are more ways to value a business than based on figures alone (for a free appraisal of your business, click here). But once you have the sale process started, start to get to work on having your financials put together.
3. Marketing and Sales.
You need to keep doing what you’re doing throughout your sale, so try not to take your hands off the wheel. It can be a scary thing for a buyer if sales are starting to change during the purchase process. Keep up whatever marketing you’re doing, demonstrate to your buyer how the business will continue to flow after a sale.
Every little bit helps! The more systems you can put in place for your business, the more at ease a buyer is going to feel about taking over the reins. This might be software, it might simply be an “owners manual” you’ve compiled. These systems also further demonstrate that the business is not reliant on you, the owner. If you are not using some systems that you think would help grow your business, make sure you highlight this to potential buyers as a potential way to improve the business going forward. Dont let his hold you back from moving ahead though. It can take several months to sell a business so you’ll have plenty of time to prepare these.
5. Policies & Procedures.
If it repetitive, it can be automated as a policy or a procedure so write it down. This is often neglected by small businesses and can be a real differentiator when it comes time to sell. You can probably write the main procedures down in a few days and this is really well worth doing as it gives the buyer the comfort that he or she can earn how to run the business.
You don’t have to advertise your business for sale with its name and location plastered all over the websites. Ideally, you don’t want to inform your employees of the sale until a deal has been finalised. In many cases, no harm has come from employees finding out, however why poke a bees nest if you can avoid it entirely. Wait until the right time to tell them, avoiding any potential “boat rocking” all together.
7. Get assistance with setting your price.
There are several key pillars that you are in control of as the seller. One of them is the price you put on your business. Don’t just shoot for a figure “because that is what you invested into the business” or even because that is what you need to sell it for. Contact a professional that is experienced for assistance with this. If you price it too low, you miss out. Price it to high, and you risk never selling.
Bonza offers a 100% free, no-obligation over the phone appraisal of your business, so that you can feel confident making a more informed decision. You can book in at a time that suits you by clicking here.