After years of hard work, you are finally ready to sell your business and move on to the next challenge.
A smart business professional knows that his business is only as valuable as it is perceived to be.
In other words, you need to be able to back up your selling price with solid proof that your company is worth the price you are asking.
When it comes to selling a business, there are several important elements to consider. Some of the more immediate considerations are:
- Whether or not your timing is right to get the best price;
- How much you are willing to put into your business to get the most financial reward from it?
- Will you want to be involved with the business after it sells?
If you want to get the best possible return on the investment you have made in your business, then there are some things you need to do to make it more attractive prior to selling.
Get A Third-Party Audit
Even if you are selling an accounting firm, your own valuation of your business is not going to matter to buyers. You are not expected to be objective when it comes to putting a price tag on your own hard work.
If you really want to get the most out of selling your company, then have it audited by an independent third-party and use that valuation as your selling price. You will want to ask the auditor what he thinks you can do to the company to get a higher selling price.
Fix The First Impression
If you have to start off your business sales pitch with “it may not look like much,” then you are not going to get top dollar for your business. Invest in cosmetic repairs to your business location and make sure that all of your business processes are updated.
You do not have to invest in a new inventory software system, but you should take advantage of any upgrades that are available for system you do have. Fix your company’s first impression and you will get more from the sales agreement.
Cut Back On Spending
You can either do your own business process efficiency audit, or you can invest in having a third-party do one, but you need to put more profit on the bottom line by cutting back on wasteful spending. If you have an efficient business, then that will appeal to the buyers you are talking to. Consider adding more efficiency to:
- Manufacturing processes
- Inventory management systems
- Accounts receivable processes
Have A Competent Staff
You will never really know if a potential buyer is going to keep your staff in place or replace it. But a company that has an efficient and productive staff is going to be much more attractive to a buyer than a company that is struggling with inefficiency.
Evaluate your personnel at all positions and make sure that you have the best possible people in place. From your management staff to your workers, you need to have a well-oiled machine in place if you want to get the most for your business.
Have Effective Marketing Programs In Place
One of the things that a prospective new owner of your business will want to see is a growing customer base.
That is why you need to make sure that your marketing programs are effective and that your customer base is growing at all times.
Even though you are looking to sell the business, you should still have an effective business plan in place that includes a comprehensive marketing program.
The idea of buying into a company that is experiencing strong growth is very attractive to prospective buyers.
Take Your Time, Relax, Negotiate
You should never be in a hurry to sell your business if you want to get the most out of it at the bargaining table.
Spend some time making your business look attractive to prospective buyers and you will be rewarded with a much higher selling price than you had been expecting.