By Clearvue Business Brokers
March 2, 2021
Let’s talk about what’s really important if you’re going to sell your business. We have identified key strategy points, which if addressed before the sale of a business, will attract more offers and higher prices. Once the decision has been made to sell the business it can be overwhelming to try to undertake a complete company makeover to position the company for sale. Focus now on tasks which will have a big impact on the marketability of the company and maximization of profits. Let’s discuss two of these.
LET GO AND LET OTHERS LEAD
Is your business you or is it something independent of you? Do your customers or clients always ask for you or are they not sure who you are?
A potential buyer wants to know that your business will run as well without you as it does with you. As they step in and take over, they want to know that the business will continue without transition hiccups. You probably already have talented management leading in various areas of your organization. Now is the time to let them fully lead.
This might sound counterintuitive, but the best thing you can do now to prepare for selling your business is to begin taking long vacations. Even better would be to begin “disconnecting” while on vacation for periods of time. When you have a company that you can honestly reply with “oh, they don’t need me” then you have a very sellable business.
SEEK OUT CUSTOMER SATISFACTION REVIEWS
Zero in on your customers and find out what it is about your product or service they like. Ask for reviews online and in other ways. Ask them how likely they are to recommend the products or services to a friend. Even if you haven’t done much of this in the past, receiving current, high-marks ratings will go a long way in describing the value of the business being offered. Build a portfolio of recommendations and service or product quotes for use on the company website and for later use in the business marketing package. It’s one thing to rave about your own business and it’s another powerful thing altogether to hear it from clients and customers.
A new owner can build on a good reputation, and products or service that customers really like. Most buyers have a plan for growth and expansion for a new acquisition which they will want to quickly put into action. What they really want is to know that there is a base of satisfied customers who are happy and willing to recommend your service or product to others or to re-purchase themselves.
Professor Linda Ginzel, of the University of Chicago Booth School of Business, puts it this way: “If you don’t write it down, it doesn’t exist. When you do, it becomes data that is observable to yourself and others.”
When it comes to selling your business, having a record of positive experiences with clients and customers is invaluable. Online reviews provide some, but most are simply heard and then set aside. Start now to write down clients’ comments about your exceptional products and services. Ask customers to provide you with testimonials of their experiences with your company. Then it exists and it is observable.
Don’t overwhelm yourself with trying to recreate your business. However, don’t overlook those few things that will make a big impact on the sale of your business. A little effort right now on these areas can have an impact on achieving your goals and selling your business on your terms.