Last Updated on Mar 11, 2020 by James W
Selling a business can be an exciting time for anyone. The thrill of knowing that you are about to get a
massive payday, the relief of not having to worry about the business anymore, the chance to finally relax
and do what you want. While all of these things are great, you have to focus on ways to make your
business as valuable as possible to ensure that potential buyers will pay you enough. So to help you out,
we are going to take a look at 5 ways to help increase the value of your business in the eyes of buyers.
Automate As Much As Possible
Automation is great when it comes to selling a business. Since the business is going to be a bit bumpy
when the transition happens, it is always great to make sure that things are still able to get done without
a problem. This also shows potential buyers that managing company is going to be an easy task
compared to having a micro manage every aspect of it. The less time they have to worry about the
business, the more interested they will be. So try and automate everything you possibly can.
Make Sure The Business Can Survive Without You
A big issue that buyers run into is that once the business is purchased, it falls apart without the previous
owner. Long before you decide to sell the business, you need to make sure that you have everything in
place so that once you leave, the business will not have any issues. This means that all paperwork needs to be organized, employees do not rely on you, proper management systems are in place, and anything
else you think might need to be done before you leave. If a potential buyer starts to think that the
business might not do as good without you, then you are going to run into a lot of problems trying to sell
it. The last thing a buyer wants is to buy something, then watch it fall after only a short period of time.
Make More Sales
This tip might be a bit obvious, but it well worth mentioning. A lot of owners start to lose focus on the
sales aspect of their business once they decide to sell it, but in reality, this is when they should be trying
to push for more and more sales. If you let your sales drop while trying to find a buyer, the buyers will
see this and offer lower amounts since they see a decrease in the profits. On the other hand, if they
notice recent spikes in sales, they will be willing to offer more since they are hoping that the sales will
continue to grow.
Have All of The Financial Documents Accounted For And Organized
One of the worst parts of selling a business is making sure all of the documentation and paperwork is
there and readily available. If you are really good at keeping records, then this might not be a big issue
at all to you, but for those of us who don’t really keep great records, we may be in trouble. If you are
unable to come up with documentation regarding your business, it looks very bad and will push away
most potential buyers. Don’t let this happen to you, ensure that everything that they might ask for is
available and ready to be seen.
Show Potential Buyers That The Employees Are Assets To The Company
A big part of how well companies do is all due to the incredible employees that work there. If you can
prove that the employees are assets that will make the company thrive, then that can greatly increase
the value of your company. This is especially true to essential employees such as programmers, writers,
etc. So don’t just let your buyer take the skilled people for free, give them a reason to pay more for your
business!
There are many ways to help convince potential buyer to pay more money for your business, but these 5
tips should definitely help you attract more and have a much better chance at getting a price that you
will be happy with.
