How to Prepare Your Business for a Successful Sale
The process of selling your business isn’t as straightforward as when selling other assets. You’ll need to prepare carefully to ensure a smooth transition. But with the right planning, you can sell your business with greater confidence. Here are some tips to aid you as you complete the process.
Conduct a Comprehensive Business Evaluation
Your first step should be to perform a thorough business evaluation. This means taking stock of the value of your business, including any and all assets it contains. Don’t forget to consider any intellectual property that may add value to your company as a whole.
The final evaluation will also take into account your business model, marketing strategy, and management team. You can start by using Sunbelt’s free valuation calculator.
Prepare Your Financials
Potential buyers will want to see your financial records. Does your company pay taxes? Are you showing clear profits and business growth? Keep in mind that these records will form the basis of your business valuation. They will provide documentation to validate your asking price.
Improve Curb Appeal
Never underestimate the value of curb appeal. This includes the literal physical property of your company, ranging from landscaping and signage to the condition of your parking lot.
It also never hurts to clean up the interior of your business to generate more interest from potential buyers. As a general rule, structural improvements won’t generally improve your sale price. However, cosmetic changes like a fresh coat of paint or a new sign can go a long way.
Document Processes and Procedures
You know your business inside and out. You are aware of what works and what doesn’t. Make sure that your core policies and procedures are in writing before selling your business.
This can actually add to your company’s value, as it will give buyers something of a “quick start” guide so that they can make the most of the business following the transition.
Diversify Your Customer Base
Before you make any major transition, you’ll want to work hard to diversify your customer base. Why? Once the transition occurs, you may lose at least some of your most loyal customers. Diversifying your customer base will give you (and the next owner) greater flexibility and ensure that your company remains profitable thanks to a wider range of customers.
Consult With Professional Advisors
An advisory team can be crucial for helping you sell your business. The right consultant helps you secure a proper business valuation, devise a communication strategy, and screen potential buyers. And they can also ensure that your transition happens on your terms, without news or rumors spreading.
Develop a Marketing Strategy
Finally, you’ll want a clear marketing plan for selling your business. Think about factors like the:
- Ideal buyer for your business
- Things that make your business unique
- Future prospects of your business
Articulating these unique considerations will help you put your best foot forward when selling your business. Additionally, the future of your business can actually impact its valuation and help you gain a better price from buyers.
Getting Help When Selling Your Business
Selling your business isn’t just one big step; it’s a series of small ones. The right consultant can make the process easier by helping you navigate any and all challenges to ensure a smooth, confident transition. Sunbelt Business Brokers would love to discuss the sale of your business.
We are proud to work with small- and medium-sized businesses. Contact us today, and let us strategize the sale of your company.