Though it may be tough to recall, January 2020 brought a lot of good news for business owners, particularly business owners who wanted to retire soon. The reports for the sales of businesses in 2019 had been released and the numbers were positive. Though the number of sales declined slightly, the median asking price was up and all signs pointed to strong opportunities for the same in 2020.
Flash forward to today and many business owners are still scrambling to decide what to do with their businesses post-pandemic. For some, it’s time to pivot. For others, it’s time to make a plan about exiting the business for good.
You’re Ready To Sell…Now What?
If you’ve already determined it’s time to sell the business and move toward another phase of life, retirement or even just a new business opportunity, you might think the next step is to put it on the market.
We would suggest not doing that right away. In fact, there are several steps to take to sell your business for the best possible price, though many of these address a pre-pandmic economy.
Today, the most important thing you can do is make your business more attractive to potential buyers. Here are three ways to do that:
Highlight Your Company’s Strengths Without Hiding Its Weaknesses
If your company is still profitable in today’s economy, be sure to highlight what’s working for it: a strong demand for particular products, excellent customer service, an online presence, etc. Be sure you understand and can define the processes and metrics that make your business desirable, especially when coupled with a professional business valuation. If your sales have been down over the past year (as many have) perhaps this is offset by a stable infrastructure and overall customer loyalty.
Also keep in mind that the due diligence process is quite detailed and extensive, so rather than attempting to hide any of the weaknesses of the businesses, be prepared to address them.
If your company has the potential to grow in the future, be sure to showcase that opportunity. Of course, this means being able to grow in an efficient manner without suffering too many growing pains. Right now, this will be one of the most appealing traits for potential buyers, who want to know that they can not only be profitable now but can expect even bigger opportunities in the future.
Have A Transition Plan
Having a business model built around you may have been wonderful to get your business off the ground, but problematic for someone else to take over. Create a clear roadmap of a smooth transition with the right processes and employees already in place. This will give potential buyers confidence that they can step in and take over without jeopardizing the company.
Ready for a Free Business Valuation?
Naturally, one of the most important ways to make your business attractive to buyers is with a solid business valuation. Don’t wonder what your business might be worth – know for sure! Contact us today for a free and confidential opinion of value.