Neglecting to understand what people want in your business before they buy it is a significant strategy weakness.
You must think like a buyer when you sell your business.
If you think about what you would look for in a business that you’d buy, this will guide you with a clearer idea of what your potential buyers will desire and be prepared to pay for.
Selling a car or house, usually involves cleaning it up to put it in it’s best light so that the best price cand be achieved.
It’s no different when you sell your business. Tidying up the appearance is one aspect of what a buyer will look for, but the main things will be the operational clean-up. Making sure the balance sheet is robust and that cash flow and profits are sustainable will be the key.
There are lots of ways you can tidy up the operational aspects of your business:
1. Hire good staff that you can rely on to operate your business without you
2. Build a management culture that rewards people in your business so they remain committed to your business
3. Boost your business profits and lock in long contracts to create sustainable revenue and cash flow
4. Create systems so that your business is easier to manage
5. Protect intellectual property which may add to the value of your business
6. Make sure equipment and property of the business is well maintained and in good working order
7. Manage business debtors to shorter accounts payable terms and extend creditor payments to improve cash flow in the business
8. Ensure you have a strategy to protect you from sudden unplanned events that could weaken your ability to negotiate with potential buyers of your business
If you think like a buyer, and set out to build your business with these factors in mind, you are likely to maximise your business value and your wealth in a way that may sustain your living standard during the next phase of your life.
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To Your Profitable Business Succession!
Business buyers are looking for something that is well organised, easily managed with sustainable cashflow and profits.