1) Workers
Do you have a director that can take over operations of your business or give a new buyer significant backing? Is there a crucial hand to help the new proprietor run the business? The quality and depth of your workers is a tremendous asset for your business. Good workers enhance business value.
2) Books & Records
Your account should be in proper order. The quality of the books go a long way to give comfort to the buyers that there’s commodity substantial to buy, and you’re being open and honest in the depiction of these records. All these rudiments help the buyer understand exactly what your business does and how it gets done.
3) Competitive Advantage
Why do guests do business with you? Do you have some special intellectual property? Special client connections? Unique position? Special permits or license? Being suitable to describe why you are different and why someone would want to buy your company to gain that edge can be important.
4) Inflexibility
You’ve been successful in your business because you change with the times. Right now business values are down and a big part of the reason is financing through banks is not available. Dealer backing will help you maximize the value of your business when you go to vend. You can also vend briskly with dealer backing.
5) Client Diversity
Having a broad selection of guests makes implicit buyers comfortable with your profit future. Too important of the deals, like 25 with a single client is a warning sign to numerous buyers. Diversify your client base to reduce threat.
6) Product Diversity
Also, if you’re a one product company, there’s significant threat if commodity happens to reduce deals of that product. Having multiple products that appeal to the same client base provides a lower threat profile.
7) Profit Pipeline
Let’s face it, someone wants to buy your business because it’s profitable. In fact, it’s more important to grow gains than deals. Show the careful attention you’ve taken to ameliorate profitability in terms of product blend, cost controls and marketing elevations.
8) Keep your eye on the ball
Once you’ve decided to vend your business it’s only natural that your mind drifts down to life after your business. Repel the temptation. Although delicate, you must continue to concentrate on running your business while your business broker focuses on dealing your business.
9) Professional Team
Make sure your counsels are on board. Your attorney and accountant will be involved in the trade of your business, so make sure you make them apprehensive of your intent. They will want to shine for the new buyer in the expedients of getting a customer to replace the bone they lose when you vend the business.
10) Growth Plans
Utmost buyers want to know what the dealer would do to ameliorate the business if they were not so embrangle down with the day to day work of running the business. Your experience and drive will help direct the buyer in thinking of ways to ameliorate your business. By helping to pencil out some implicit future directions, you will be helping the buyer to fantasize how to take the good thing that you’ve erected, and make it indeed more.
Final studies
Moment buyers are consumed with managing threat. You can maximize the value of your business by doing effects that help the buyer perceive lower threat. Well proved processes, long client connections, stable hand base, good books and records and long profitable track record will all help the buyer focus on the occasion, and not the threat of your business.
Erik Ottem is a business broker in Silicon Valley. He’s a pukka business conciliator and holds a master of business administration from Washington University inSt. Louis.
