Company Selling Prep within "6-12 Months"

• Business Category:
  
  

  	distribution
  	manufacturing
  	wholesale
  	retail
  	or other

  
  
• What is your Standard Industrial Classification Code (SIC)
  
  
• Who is your primary market target?
  
  

  	business (define type)
  	consumer (define demographic)

  
  
• What is the approximate number of customers?
  
  How many of these customers account for 25% of revenues?
  
  
• Where is your customer base?
  
  

  	local
  	regional
  	national
  	global

  
  
• How would you rate the trend of your markets:
  
  

  	growth
  	stable
  	decline

  
  

• S=Strengths: you need to clearly define your company's strengths. It could be your product line, sales force, location, operation efficiency or other.
  
  
• W=Weaknesses: in comparison, you need to outline your company weakness. This too may by your product line, sales force, location, operation efficiency or other.
  
  
• O=Opportunities: the buyer would like to know what opportunities lie ahead under a strategic play. This could be a key reason why the buyer is interested in your business.
  
  Strategic opportunities may include a product line expansion, opening a new market, streamlining an operation for better efficiency, etc.
  
  
• T=Threats: in contrast, you need to also list the potential threats. This may include price competition, new competition from a major player, lack of employment skills, declining demand, etc.
  

• Who is your target market? Who buys your particular products and/or services and why?
  
  This is very important. The buyer may want to move into a new marketing segment. Your experience with this kind of strategic play is very valuable.
  
  
• The buyer would like to understand your customer base. What is the approximate number of customers that you serve and how many of them account for 25% of the revenues?
  
  
• The buyer will ask whether your customers are loyal. Do you have repeat sales from your customer base?
  
  
• Where is your customer base: local, regional, national, or global? Are there any potential customer base opportunities outside of your current marketing reach?

• The buyer needs to understand your current product or service offering. A history of your product or service development will be requested.
  
  
• Questions on potential product line extensions will be raised? For example, a plumbing business buyer may want to expand their service line to include bathroom remodeling.
  
  The buyer would like to understand your experience (success or failures) that you have in product line extensions and development.

• How do you price your product or service? Price is a relative term. But could you raise your price and maintain your market position? Or is price subject to intense competitive pressures that force you to offer discounts and other incentives?
  
  
• A follow-up question is whether you have cyclical and/or seasonal factors that impact your price and revenues?
  

• The buyer would like to know your promotional activities:
  
  Media:
  

  	radio
  	television
  	newspapers
  	billboards
  	internet

  
  Direct Marketing:
  

  	direct mail
  	telemarketing
  	search engines

  
  Direct Sales:
  

  	sales staff
  	outside representatives
  	trade shows, conferences

  
  Public Relations:
  

  	PR campaigns
  	media alliances

  
  Other:
  

  	customer referral
  	other

  
  Which of these promotional campaigns are successful? Which of them were failures and why?
  

• Finally, how do you distribute your products or services? List the distribution channels that you maintain:
  
  

  	Do you maintain a warehouse, order facilities unit, etc.
  	Do you maintain a retail operation in a strategic location?
  	Do you deliver your service?
  	Do you maintain an e-business fulfillment operation?
  	Other

• if you are operating in an emerging market, you may have few competitors. But fast growing markets invite in new players with new capital that can challenge your dominant position.
  
  
• if you are operating in stable markets, you may have many competitors who hold a strategic position in the market. It is unlikely to see new competition; but it is possible for mergers and acquisitions that may give a competitor added strength and depth.

• define the barriers of entry into your market — how easy or how difficult is it from someone entering your market to compete?
  
  
• define the the barriers of exit — can a competitor exit the business fairly easy or are the barriers so high that an attack on a competitor may force retaliation in price or other?
  
  
• what competitive threats do you find from players in the value chain — can your supplier or buyer move down or up the value chain to compete directly?
  
  
• what gives you an competitive advantage over the next player: is it your retail location, target location, product offering, or what?
  

Company Sales Prep

• company analysis
• company sales sheet
• company valuations
• professional advice and strategic consulting in marketing, finance, and operations
  

Business Brokerage

• listing and networking your business
• qualifying and screening buyers
• managing the company due diligence
• arranging financing
• closing the sale
  

click to view more information about the Novars Group Business Brokerage and Consulting Services