Over time, business owners can lose interest. They become tired of the routine. The challenge has gone, it’s not as exciting as it used to be when the business was new and growing. Problems are no longer a new challenge to be solved, but have become a frustrating hassle.
The recent lock-down may have heightened this perception. Numerous business owners are feeling tired, fed up and frustrated at the prospect of re-building. Some have even decided that they quite enjoyed the peace and tranquillity of the lockdown period, and have decided to retire.
Selling a business which may have taken decades to build is neither an overnight nor a DIY project. It requires consideration and planning to achieve the best result. Here are 3 important areas to consider when you prepare to sell.
First Impression Counts
On two recent occasions I have advised business owners to tidy up the front and paint the facade of their building Although both of these businesses had excellent trading and profit figures, they looked tired which made it appear that they weren’t well managed or efficient. Avoid having front offices with piles of paper everywhere, or factory and assembly areas that are messy and cluttered. Give attention to parking areas, fill potholes, cut grass and tidy garden areas. It’s a relatively small cost that will help achieve a premium sale price – perhaps tens of thousands of dollars more, it’s a no-brainer.
Take Time to Plan
Many business buyers will be putting their life’s savings and their family home on the line, they are naturally cautious and anxious and they do not necessarily stop looking for a suitable business while they are waiting for information.. It’s therefore important to make sure all your systems and processes are well documented. This means ensuring all your records are transparent and transferable and that you are able to demonstrate that the company name and brands are protected. This should also include ensuring any licenses and agencies are secure and formalised arrangements for key suppliers, like landlords are in place.
Price Your Business Correctly
You can quickly and irretrievably lose potential purchasers by overpricing. Your Business Broker can advise on how to best market your business, what similar businesses have previously sold for, what you will be competing with, how they compare with yours, what they are generating and how they are priced.