If you own a small business and are ready to sell it, there may be a buyer in the wings ready to snap it up. Working with your Richmond business broker or other broker can help you make a deal. However, before you put your business in the marketplace, consider the following recommendations to prepare it for a lucrative sale.
You can give your business a chance to sell by having a strong brand tied to it. It isn’t enough that your business turns a profit — a trusted brand presence will imbue the buyer with the confidence that it will succeed once you are no longer at the helm.
Take a look at the domain associated with your business. Is it the right choice? Does it tell people something about your business or will they see a disconnect? Your brand should have a recognizable logo, with the right colors. It may be time to invest in an update and implement those changes before you market your business.
Does your business serve a specific demographic? If so, it should be a strong leader in that segment. You will showcase your demographic strength to buyers, making a case for them to snap up your business.
Owning a demographic market, especially a lucrative one at that, can raise your business’ value. Buyers will look beyond the Financials to find out how your business is performing with certain customers. Therefore, amplify your strengths as you market your business.
Nothing strikes fear or dismay in a potential buyer when they discover how much of a business’ responsibilities sit squarely on the owner’s shoulders. It can be daunting to envision just how the new owner will accomplish each task.
Objectively look at everything that you do. Are you on hand from early morning to late at night, six or seven days a week? If so, why? Are there tasks you are currently accomplishing that can be automated or delegated? This can mean simply automating your email or your social media activity. It might also mean making some difficult choices to help streamline your operation. Simplify as many tasks now and before you have a potential buyer looking over your shoulder.
A Roadmap for Success
You stand a greater chance of selling your business if you have a road map in place to guide the new owner. That map should supply a blueprint to demonstrate where the business is going and how it will arrive there.
A potential buyer should be able to envision where the business will be in one, two and five years or longer. Moreover, that roadmap should offer compelling and realistic steps to help the buyer actualize those goals. Conceptualize a blueprint based on outcomes that can be readily visualized.
Work With a Broker
In order that your business will sell at its highest price, you will need professional assistance to make that happen. In other words, hiring a business broker will go a long way in obtaining a strong valuation and the expertise that goes with these professionals.
Know that there are costs involved with hiring a business broker. And you should work with someone who can supply references attesting to past successes. Brokers come with two groups of people that you need: buyers and investors. The first group is necessary for taking over your business. The second group is for investing in the enterprise after the sale has been finalized.
Business Broker Considerations
A business broker can help you make a deal. He can also advise you on the steps you need to take to prepare for the sale. Finally, the broker opens doors for business owners that they cannot possibly do on their own, professional prowess you must have access to if you are to succeed.