What do you do before you sell a valuable asset, such as a house or car? You take care of repairs to get it in the best condition, share beautiful photos and highlight all its desirable qualities.
Selling a business has a similar approach. You need to get your company in excellent condition inside and out and show how it is a better option than the rest out there. Here are a few concrete ways to make your business more attractive to buyers.
The basic “health” of your business is a good place to start. These questions are good to consider even if you are just creating a startup:
- Does your business operate smoothly?
- Are your employees well-trained and reliable?
- How diverse are your clients and vendors?
- How effective is your marketing?
- What are your goals for growth and how are you achieving them?
- Do you have policies and procedures in place?
- Is the appearance of your establishment attractive and well-maintained?
- What makes your product, service or methods unique and valuable?
Continue cash flow
Buyers want assurance that the business will continue to bring in profits after the sale. If you arrange for cash flow to continue, even with the challenges of going through a transition in ownership, your business will be much more appealing.
However, in doing so, make sure you are transparent with your financial records and business valuation. Deception and confusion will only hurt you, not help you.
Create a succession plan
It is your job to ensure proper leadership and a smooth transition to make it easy for a buyer to take over. Of course, there will be challenges anyway, but they should not be due to lacking an organized plan that you have reviewed with your company. Part of this includes minimizing risks. Make your business a safe option; the new owner can always choose to take risks with it later.