It's time for the next big adventure in your life. That may be retirement. Or maybe even starting a new business venture. This crossroads in your life means that you'll need to sell your business to transition to this new stage of your life. Here are five tips that you should keep in mind when it comes to maximizing your business' sale value to get the most out of a sale.
You're still in charge. Don't start your retirement early. You'll want to make sure that you're doing all the right things for your business. Keep your business in good shape, and you'll be in good position to get a high asking price. That means you can't phone in your last days at your company before the sale, but always need to be on the lookout for ways to add value to a potential buyer.
There are several things a buyer will look for in a business that helps to add value, which includes a strong customer base, several sources of income, and a great team in place. A company missing one of these factors can fall short in a buyer's eyes, and make them less likely to want to pay top dollar for your business. Make sure that your business hits these marks to attract high-quality buyers.
Selling your business can be different from selling your home or other high-value items. You want to move quietly along this path as letting a large number of individuals know that you're selling could start issues that decrease your business' value. Your customers may think that you're in trouble and you're going out of business. They may view this as an opportunity to shop around while they still have your company as a safety net when trying out your competitors. Your employees may become worried about what may happen to them under a new owner and management. That could potentially lead to higher turnover than you usually see as the worry over the unknown may make them want to find a new position on their terms. They may also not give you your best effort, feeling you're betraying them in moving forward with a sale, and that could even trickle into how your vendors and landlord view your company.
It may seem a bad time to evaluate your brand since it won't be yours for long, but this step can help add value while seeking a buyer. Many businesses don't actively think about their brand or how their customers view the business. You want to consider your brand absence and whether your clients are familiar with your business or just use it because of your location. Think of your brand awareness or how familiar people are with your company.
Do consumers prefer your brand over your competitors? Think of how it compares with the competition, and what it offers your customers that the others don't. Is it creating brand insistence where your customers are loyal enough that they prefer your brand over others?
A final factor to evaluate is brand advocacy. Do your customers rave about your business to their friends and family in person or online? A satisfied customer is a powerful, free marketing tool for your business.
There are a few things that you can do to improve your brand while considering selling your business. The first is being aware of your brand. You also must offer the best service possible and create an excellent customer experience. A final way to improve brand is to get involved in the community if you're not already doing so, as customers enjoy using a company that shares their values.
You may place a large price tag on your business because it's your business. You built it up and made it what it is today, but you're going to need to go through the books to know your numbers. You'll want to be familiar with your financials and look at them through the lens of a potential buyer. They may not know that a particular season is a slow time or other things that may impact these numbers.
At this point, you might want to get an outside view of your company's value. Contact Truelytics today to help get a reading on its current value and what you must do to improve that value before the sale.
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