You’ve invested your time, money and energy, and now it’s time to reap the reward. When it comes time to sell your business, how you set yourself up in the months prior to sale is just as important as how an agent markets it. Here are three steps a coach can assist with to get you ready for sale.
The overview
The first thing a prospective buyer will ask for is an overview of your business – what it does, how it operates and where there is room for growth. A good overview of your business can make or break any business sale. Akin to a business plan, it outlines staffing, management roles, and day-to-day operations.
Buyers are looking to ascertain whether the business can be run under management or how much time they will need to spend in it. They also want to know whether it’s a skill-specific industry or one that they can step into, with training, to take over.
They need to be able to see if there is potential to diversify and take the business to the next level, or whether they can sit back, relax and let the cash roll in with minimal input.
Above all, the overview should be professional, and come in a format that’s easy to read. It should reflect the look, image and ethos of your business, providing potential buyers with a “feel” of the asset you have built.
The figures
Let’s be frank, business comes down to the bottom line. No matter how much time or money you have put into it, ultimately a business’ worth relates to how much money it makes. Figures provided should be current, indicating growth and clearly accounting for losses. They should reflect staffing costs, production or stock costs, any outgoings, and of course profit. They should also account for potential stock at valuation.
Again, they should be professionally prepared, in the knowledge a prospective buyer and their accountant will trawl through them with a fine tooth comb.
If by chance, you are behind on your accounting, it is essential to bring them up to date in the months prior to putting your business on the market.
Growth opportunities
A big factor any buyer is looking for is potential, so take the time to identify and outline prospective areas of growth. Maybe you haven’t implemented a marketing plan, maybe stock could be expanded or a website could be better utilised.
A little investment in an expert to identify and outline areas of growth or improvement could go a long way to securing a solid price for your business.
A little investment
Engaging a coach or mentor to assist with any of these areas prior to sale could land you a major return in the long run. Poorly prepared businesses can sit on the market for months or even years, so do the legwork first and where necessary bring in a professional to help you get your business into shape long before you contact an agent. Not only will they ascertain your strengths but could identify any weaknesses, allowing you to remedy them before going on the market.
The Coaching Circle has coaches available to assist in all area of business. Click here to see their areas of expertise and credentials, or contact Clive directly.
