Has the time come for you to sell your business? Perhaps you are reaching the retirement phase, and you are putting your succession plan into place? Maybe you have decided that it is time for a career change? No matter what applies, it is important that you approach the whole process carefully if you are to sell your property at a great price. With that in mind, read on to find some top tips on selling your business:
Be honest at all times
There is only one place to begin, and this is the cliché that honesty is always the best policy. You need to be upfront about everything from the beginning. All businesses have negatives and positives, and investors understand this. They don’t expect everything to be perfect.
Give your staff some attention
It is important to ensure your staff members are engaged, especially if the buyer intends to keep them on. If they feel appreciated and connected to the brand, they will work harder for you.
Verify your financial claims
You need to have verifiable proof of revenue from all sources. No one is going to simply take your word for it; they want to see the solid proof.
Improve your business premises
If you are selling your business premises as part of the deal, you should spend a bit of money on improving them so you can demand a higher price – just like you would if you were selling your home. You can install a brand new roof, which will add thousands to the value of your offices. Other options include installing new windows to allow more natural light to come in, as well as changing the entrance to your premises and getting rid of clutter.
Don’t focus on potential
A lot of business owners believe that they will be able to demand a higher price because their business has a lot of potential. Nevertheless, buyers won’t pay more for potential. This is not how it works. If a business is essentially a concept, and there is no proven revenue stream, there won’t be any value in the eyes of most buyers.
Now is a good time to start automating. Your business model needs to be built with scalability in mind. If your business grows to be ten times what it is today, it is going to require ten times the effort from you, and then the new owner. This is why now is the time to automate some of your processes. You may also consider outsourcing certain elements, such as accounting, so you can free up the time you have available. It is going to be much harder to part from your business if the entire operation relies on you.
Find your hidden value
Finally, all companies have a hidden value, and finding this can be the key to selling your business successfully. You may need to conduct a considerable amount of analysis to find it, but it will be there!