Preparing your business for sale - Adding value to your business to attract business buyers

As a business owner there are some simple ways to improve your business while preparing your business for sale now or in the future.

In order to add value to your business there are a number of things you need to have very clear in your mind.

Initially, think about the vision that you have for your business and where you see it in the timeframe you estimate selling your business. Go over all the things you really want from your business and seek out ways to improve your business in order to get there.

Then take a step back and make sure your business does not depict you (the owner) as just having a job. You will need to structure your business to show it will run without you. This will attract business buyers and help add value to your business.

“You read a book from beginning to end. You run a business the opposite way. You start with the end, and then you do everything you must to reach it.” Harold S. Geneen

During the process of preparing your business for sale it is important to demonstrate a well-organized and effective operation that can function at arms length – this too will add value to your business and attract business buyers.

There are some things you must put into action first, such as:

- Ensure your business has a clear structure. Separate your activity into sections and areas. For instance, you have to establish what needs to be done and then what should be systemized

- There may be clients /customers you need to meet and networking events to attend to help your business grow

Preparing your business for sale – your business image and your employees

When it comes to having a team or staff, it is vital for everyone to know exactly what they have to do. Each person has to clearly understand his or her role and responsibilities. Your employees represent your business image and play a critical role in attracting business buyers.

You will also need to create a safe and friendly business environment by motivating and supporting staff to be efficient and do their jobs right.

Building and adding value to your business

When it comes to attending to your customers/clients needs, you should be very diligent and make sure their requirements are met 100%. This can be a very time consuming activity, however a ‘must do’ and why this also needs to have set out procedures in place.

Organize your scheduled meetings, settle on the points for discussion beforehand, establish the goals and the strategies to employ in order to reach your goal and keep you on purpose. This will help you save a lot of valuable time as well as help keep everyone on the right track.

As a small business owner you cannot afford to fall into the busy being busy trap – plan your day to guarantee this doesn’t happen.

To ensure you are providing your clients with maximum value added services and faster solutions for their issues, it is extremely important to establish regular communications such as email, newsletters, calls, networking and educational activities.

All these things are of great importance in order for you to structure your business and attract business buyers.

But remember, when preparing your business for sale, the essential thing to do is understand that you cannot do it all by yourself.  Becoming a workaholic is not a solution.  Learn to delegate the minor responsibilities and keep yourself focused on doing the most productive tasks for your business.

By working primarily on the activities that really require your effort and your expertise as the business owner, you will be adding value to your business as well as consistently maintaining maximum value, enabling your business the power to attract business buyers at any time.

Selling your Small Business – Discover the formula for selling a business

Sooner or later most business owners will find themselves asking "what shall I do with my business?”

Like most business owners, you have put your all into your business to get it where it is today and it is a big part of your life you are parting with; there can be a lot of emotion tied up in the process but it is important to work out what you really want and follow a realistic path to get there.

A well thought through and planned formula for selling a business will ensure you achieve a great result for you and the future ongoing success of the business.


Deciding who to sell to as part of your formula for selling a business -

Many small business owners are very concerned with who they sell to and who is going to look after their ‘baby’ (business) if and when they go. Some common questions include:

• Should I sell directly to my staff?

• To the competition up the road?

• Perhaps to a much larger business?

• Should my children have first option?

• Should I stay on and play a role in the business’s future after it sells or pursue other interests?

Customizing your own formula for selling a business –

What do you really want and how will you get there?

Coming to grips with the simple fact that leaving your business is going to eventually happen for one reason or another is difficult, especially when you have invested so much time and energy.  Try and put your emotions to one side for a moment; sit down and really think hard about what you truly want from selling your business.

• What is your desired outcome?
• What will you do with the proceeds?
• What about tax?
• What will you do with your time?

We all know that it is preferred to be deciding when, where and how to sell rather than having to deal with selling should something unexpected arise, however, in reality it is just as important to ensure you include the unforeseen.

Formula for selling a business - Planning

Having a good plan outlined and ready for selling your business is vital.  Strategy comes into play here also and I recommend speaking with a few other business owners who have decided to sell or have been forced to sell in the past. Most business people are happy to share their experiences and recommendations. Obviously, this is just one source for information in the planning process.

Educating yourself and understand the process is highly recommended and with this comes a few serious questions to consider such as:

• What can I do to ensure my business is operating at its best with little time?

• What are the best strategies to market my business?

• When should I get my lawyer and accountant involved?

• How do I sell my business myself – without a business broker? Do I need a broker?

• How do I establish the correct value of my business?

Once you have written down your desires for success in selling your business, run it by your trusted team of confidants for feedback.