Looking Ahead to 2021
As we enter the last stretch of 2020, there is some hope for next year to come; promising results from multiple vaccines has bolstered both the stock market and peoples’ spirits. Many business owners are looking for relief after a brutally long year. While some businesses have been forced to shutter for good, we’re talking to a lot of business owners who have been hunkered down and weathering the storm if not day by day, then at least week by week.
Looking Back at 2020
Regardless of how your business is being impacted by COVID-19, now is the time for all business owners to do one very important thing: keep notes or records of this year and how you have been affected. For those business owners considering the sale of their business, these records could be crucial during the business valuation. Those notes could influence how both business buyers and lenders view your business and its chances for success in the future.
Perhaps you have been too busy surviving to think about taking notes. In order to help you reflect on this, use the following questions as a guide, including the answers as well as how your business responded:
- Has your business had to pivot?
- Did your state or local government have any restrictions that impacted your business?
- What disruptions did you experience?
- Did your overhead costs rise or lower as result?
- Did you receive aid or assistance from the government or from other sources (landlord, vendors, etc)
- Did your working capital or assets change during this time?
- What other changes have you seen that need to be recorded: positive or negative?
- What do you see as temporary and what do you see as permanent effects from this year?
- Are there any additional opportunities?
Taking time to flush out the answers these questions is not just about seeing what worked and what didn’t for your business in the midst of a crisis (though that is invaluable too). It could be the key factor in selling your business for maximum value when the time comes.
If you have questions about whether or not 2021 is the time to sell your business, contact one of our experienced business brokers today for a free consultation about today’s market.