Business Growth Equals Great Result For Kate’s Hair Salon Sale
Business Growth Equals Great Result For Kate’s Hair Salon Sale!
Kate originally listed her business for sale in 2019. With a solid buyer not presenting and time on her side, the decision was made to withdraw the hair salon from the market. Kate wanted to spend some time working on the business, increase profitability to achieve a higher price point and make the business more attractive to potential buyers.
With a stronger and more robust business in 2022, Kate decided it was time to come back on board with Bonza. By taking the time to work on the business, Kate was able to demonstrate what an outstanding opportunity this salon was to a motivated buyer. Within three short months, the salon had new owners and Kate yielded an extra $20,000 on top of her original asking price. What a fantastic result!
If you are like Kate and would like to grow or improve your business for the purpose of selling then there is some great, detailed advice found online here, below are some smart and simple ways to improve your business’s financial position:
1/ Seek advice from a professional - If you haven't already, talk to an accountant or business advisor about your finances. They may be able to help you find other ways to improve your cash flow.
2/Reduce or rearrange expenses – Work out which of our expenses you could reduce or rearrange. You might be able to change how much stock you buy and buy when you have higher cash flow, switch to cheaper options for consumables like energy or switch insurance companies, banks, or suppliers to get a better deal.
3/ Use new marketing techniques - Putting more effort into marketing doesn't necessarily require spending more money. For example, using the internet and social media can be a cheaper and smarter way of getting your message across.
4/ Improving your cash flow - There are simple ways to improve your cash flow, such as making sure you send a correct invoice at the time of purchase or following up on outstanding debts.
Simple changes over time can make a big impact on your financials and present a more attractive sale to the buyer. At Bonza, we present your business and financial summary in an attractive Business Profile – our simple yet detailed format is easy to read and a great conversation starter for the broker team!
If you would like to find out how much your business could potentially sell for then the friendly team at Bonza can also assist by providing you with a free appraisal, as well as offer advice on how to achieve your desired price.
