Five Drivers of Business Value!
Five drivers of business value
If you’re looking to sell your business, these five business value drivers should be top of your list.
Why? Because they help reduce one of the biggest things holding back buyers from buying, RISK!
Keep these 5 points front of mind to help you achieve you business sale.
- To begin with make your customers happy! Happy customers say more about your business than anything else. Keep in regular contact with them. Solve issues quickly and listen to your customers. Positive google reviews also help when it comes to showing your prospective buyers that your customer base is good.
- Secondly, intellectual property – recipes, processes, patents, trade secrets and trademarks. This “IP” may also exist in how you do things or your customer database or contact network. Documenting how this “Secret Sauce” adds value to your business can really help build value in your business. All of these points help reduce competition and may give you a solid point of difference over other businesses for sale.
- Furthermore, if you can get it, recurring revenue is great. The more contracted customers you have paying you every month or year, or return customers coming back to buy again, the “safe” your business’ revenue appears to buyers.
- Next is business systemisation. This can create transparency; a third party can review what is going on and see that the business can be run by almost anyone. Try to have your core processes systemised and documented.
- Finally, think about your what money you want in the bank after the costs of selling our paid. If you sell your business for $75,000, the average business broker will charge you an upfront marketing fee and a hefty commission when you sell. This commission is normally a percentage of sale, but with a minimum. This is often $15,000. So even after paying for marketing your $75,000 is going to get reduced to $60,000. By choosing a commission free, flat rate broker you can celebrate your sale with two week cruise, or even a new car.
So to recap- happy customers, intellectual property, recurring revenue, systemisation and get value for money when selling!
To start getting an idea of the sale-ability of your business, you can book in to speak with a Bonza Sales Expert, completely free of charge by clicking here.