After working hard to create a viable business – wouldn’t you want to see a substantial return on your investment?
How do you create additional value in your business to maximize it’s sale value?
5 Key Focus Areas:
1. Systematization – Make it easy for potential buyers to just pick up the business and run with it. Creating a written system for all business activities makes it easy for any new owner or employee to pick up where you left off. This means that no one person is vital to the successful running of the business – least of all you – the business owner.
2. Consistent Recurring Revenue– All revenue is not created equal. Potential buyers look to see if you have recurring revenue as a result of a contract or agreement like annual licensing fees, maintenance fees, etc. This obviously makes for an easier sale because a certain % of revenue is almost guaranteed to stream in.
3. Desirable Products/Services– Products that are sought out after are more attractive to potential buyers than those that aren’t unique. If you have a niche that hasn’t been tapped into yet – it makes your company more desirable. If you aren’t sure what makes your business unique, now is the time to find out. If you can effectively communicate what makes your business special, your business becomes more desirable in a sale situation.
4. Dream Team – Having a team of professionals such as a business coach, bookkeeper accountant and lawyers will help reduce the buyer’s perceived risk. Utilizing trained professionals with expertise in specific areas provides a comfort level that the business has been run properly, systematically and efficiently.
5. Written Growth Plan – Having a 2-3 page long written, strategic growth plan that identifies and lists areas your company is expected to grow can help maximize its value. Your business is more appealing if there is potential room for growth and opportunity.
Are you looking to prepare your business for sale?
Looking for a business valuation review? We can provide a review to show you how to maximize your sale value. After working hard to create a viable business – wouldn’t you want to see a substantial return on your investment? Our business coaches can show you how to prepare your business for sale to reap substantial rewards.