Are you thinking about selling your business? Perhaps you are ready to retire? Maybe you simply want to get away from the stresses and strains of running your own company? No matter what applies, you probably already have an idea in your mind regarding how much you want to gain financially from the sale. In order to achieve your exit goals, you need to put in the groundwork. Below, we take a look at different ways to increase the value of your business before you sell.
Tidy up the business – Firstly, don’t ignore the importance of tidying up the physical structure of your business. This is usually a buyer’s first impression of your company, making it a vital one. Ensure your facility is looking its best. Now would be a good time to invest in a fresh coat of paint and some new furniture.
Differentiate your products and services – This is especially important for small businesses. You can command a premium in the business-for-sale marketplace by differentiating. This is because your business is less of a risk, and you will be able to demonstrate that your business is uniquely positioned to dominate a portion of the market. Not only this, but it means that you have a diverse customer base as well, which will insulate your company from the loss of a major customer.
Keep key employees on board – Your key employees bring stability to the business, and this is exactly what a new owner is looking for. These are the people that bring in the real profit for your company. The last thing a new employer wants is to walk through the door and experience employee turnover. Instead, put incentives in place so that your key employees will stay on board for the foreseeable future.
Invest in security – Is your business’ security plan effective and up-to-date? Have you invested in the best security systems? If not, now is a good time to do so. A surveillance system such as the HS Tech Group business surveillance system can seriously boost the value of your business and enable you to command a much higher price.
Cash flow – We simply cannot ignore cash flow when it comes to driving a higher sale price for your business. Cash flow is, undoubtedly, one of the most important factors taken into consideration when determining the true value of a company. If you can show that your cash flow is increasing year-on-year, you are in a very good position.
Review marketing and advertising – When someone buys your business, they are buying into your brand. They are buying into the name of your company, your phone number, your website, your logo, and so on. Now is a good time to reflect on your marketing campaign, ensuring it is clear and effective, and that you are making a good return on investment in the process too.
If you follow the six tips above, you will drive up the value of your business, ensuring you pocket more money during the sale.