When starting a business, there are many things to think about, but certain factors are more crucial than others when it comes to your success. One of the essential considerations is choosing the right business broker. A business broker can help you find a business that aligns with your interests and advise on what steps to take next.
Here are five of the most important things you can do to affect the success of your business:
1. Create a Detailed Business Plan
This is another area where a good business broker can help, especially if you’re planning to seek out financing from investors or lenders. They’ll want to see a business plan that outlines your goals and strategies and how you plan to actualize them.
The plan will start with an executive summary outlining what kind of company you’re buying and why it will succeed.
The plan should also include marketing analysis and financial projections for your business. This will give potential investors an idea of the possible return on their investment and help you keep track of your company’s progress.
Another thing to consider is making the business as simple as possible. If it can be run without an owner/ manager, it’s much easier to focus on the business. It also makes it easier to transition to a new owner further down the road.
Finally, not a part of the preliminary business plan, but something essential to consider, is to make sure “Best Practices” are in place. Be prepared to evaluate mistakes and create policies, so they don’t happen again. Clear procedures will help employees be effective and help future buyers not make the same mistakes.
2. Choose the Right Location for Your Business
The location of your establishment is essential for several reasons. It can affect your company’s image, foot traffic, and bottom line.
Choose a location that makes sense for your business type. For example, if you’re a retail business, you’ll want to be in a high-traffic area. If you’re a business that requires appointments, you’ll want to be in a convenient location for your customers.
Location is also important from a zoning perspective. You’ll need to ensure that your chosen area is zoned for the type of business you’re planning to open.
You also want to look at the businesses around your intended commercial space. Do they fit your client type? Ideally, businesses should complement the other leased spaces so everyone benefits from the traffic.
3. Invest in Marketing and Advertising
No matter how good your business is, you won’t be successful if people don’t know about it. That’s why it’s fundamental to invest in marketing and advertising.
There are many ways to market your business, so you’ll need to find the right mix of methods that work for you. Some common marketing strategies include online advertising, print advertising, and word-of-mouth marketing.
Also, consider your website because advertising generally lands for more information. Update your website as often as possible and consider monthly promotions as a way to draw traffic if it fits your business model.
4. Build a Strong Team of Employees
Your staff is the face of your enterprise, so it’s important to build a strong team. They’ll be the ones interacting with your customers, so it’s vital to choose friendly and personable people. Their customer service should be front and center with set procedures and expectations. Done well, those employees will become a significant asset to the business.
When positioning your company to sell, for key employees, a buyer will consider their pay, tenure, vacation, and benefits. The buyer may consider a raise or bonus to the employee if they’re a valuable asset to the company.
5. Stay Up to Date with Industry Trends
To succeed in business, staying up to date with industry trends is essential. This will help you identify new opportunities and challenges for the business you’re considering.
Listing off well-known businesses that failed to evolve shows that no one is immune. Blockbuster and Toys R Us are relatively recent examples of businesses that didn’t adapt. Apple may be one of the most significant adapters in our lifetime. Once known for computers, you can look at your wrist, source of music, or phone and see that they listened well.
These are just a few of the most important factors that affect the success of your business. If you’re thinking about starting or selling a business, contact Sunbelt Business Brokers of Naples for a free valuation & consultation.