Has the time come for you to sell your business? Perhaps you are reaching the retirement phase, and you are putting your succession plan into place? Maybe you have decided that it is time for a career change? No matter what applies, it is important that you approach the whole process carefully if you are to sell your property at a great price. With that in mind, read on some top tips that you cannot ignore.
Be honest at all times – There is only one place to begin, and this is the cliché that honesty is always the best policy. You need to be upfront about everything from the beginning. All businesses have negatives and positives, and investors understand this. They don’t expect everything to be perfect.
Give your staff some attention – It is important to ensure your staff members are engaged, especially if the buyer intends to keep them on. If they feel appreciated and connected to the brand, they will work harder for you.
Verify your financial claims – You need to have verifiable proof of revenue from all sources. No one is going to simply take your word for it; they want to see the solid proof. Now maybe a good time to migrate from QuickBooks to NetSuite so you have everything organized.
Improve your business premises – If you are selling your business premises as part of the deal, you should spend a bit of money on improving them so you can demand a higher price – just like you would if you were selling your home. Companies like HappyRoof.com can install a brand new roof, which will add thousands to the value of your offices. Other options include installing new windows to allow more natural light to come in, as well as changing the entrance to your premises and getting rid of clutter.
Don’t focus on potential – A lot of business owners believe that they will be able to demand a higher price because their business has a lot of potential. Nevertheless, buyers won’t pay more for potential. This is not how it works. If a business is essentially a concept, and there is no proven revenue stream, there won’t be any value in the eyes of most buyers.
Automate processes – Now is a good time to start automating. Your business model needs to be built with scalability in mind. If your business grows to be ten times what it is today, it is going to require ten times the effort from you, and then the new owner. This is why now is the time to automate some of your processes. You may also consider outsourcing certain elements, such as accounting, so you can free up the time you have available. It is going to be much harder to part from your business if the entire operation relies on you.
Find your hidden value – Finally, all companies have a hidden value, and finding this can be the key to selling your business successfully. You may need to conduct a considerable amount of analysis to find it, but it will be there!
Launching a new business is a very exciting albeit stressful time. If this is your first business, it can feel like taking a step into the unknown. There is so much to think about, and so much that needs to be achieved. One of the most critical aspects to consider is the financial side of things. You need to lay the foundation for a sustainable business, and below we have some tips on how you can achieve this.
Establish financial goals – Everyone wants to build a company that is worth millions. However, you need to break down your financial goals into measurable and reachable ones. By having daily, weekly, or monthly revenue goals in place, you will be able to stay motivated and keep on track. You can also ensure constant growth by making any necessary changes.
Focus on customer acquisition – At the end of the day, you don’t have a business if you do not have any customers. Your company will have a greater chance of making it the sooner you realise how to acquire customers and scale. Once you have identified various acquisition channels, you can focus on optimization to reduce expenditure.
Always go for an unsecured loan – When it comes to business loans, you generally have a choice of two options: unsecured and secured loans. The problem with the latter is that you are going to be linking your personal wealth to the success of your business. You will most likely need to secure your home against the loan, which means your property could be in jeopardy if your business is not a success.
Time is money – No doubt you have heard the saying time is money before, but it is a fact. Every minute of your time has financial value. You only get so many hours in the day, so take this into account when planning your daily duties and schedule.
Constantly look for ways to reduce outgoings – As a startup owner, you are going to have plenty of expenses. However, you will often find that a lot of business owners are paying way more than they need to. You must look for opportunities to reduce your expenditure on a continual basis. Suggestions include focusing most of your marketing strategy online and outsourcing time-consuming tasks to experts.
Cash flow management is key – Finally, managing your cash flow is of huge importance. One of the main reasons why startups fail is because they run out of money. You need to know where all of your outgoings are going and where all of your incomings are coming from. You will put your business in an extremely difficult position if you do not stay on top of cash flow. It does not matter how amazing your ideas are; you will hit a massive brick wall if you run out of money.