The United States economy is largely service-based. While manufacturing companies will be profitable well into the future, it’s service industry businesses that are seen as the backbone of America’s economy.

As an owner of a service industry business, keeping your doors open after you retire is not only important for your saving’s plan, it’s also important for supporting the economy as a whole.

If you’re considering putting your business on the market, take the steps to ensure it sells successfully. Let’s take a look at what you can to stack the odds in your favor.

Create a Digital Following

Nowadays, cultivating an online following is extremely important for your business. Not only will it help you gain new customers now, but it can also help you close a deal with a potential buyer down the line.

Buyers like to see that they are buying a profitable business that is known for providing quality services to their customers. They are looking for a company that has good reviews online. But, that’s just the bare minimum. Businesses that have a lot of followers on their social media accounts can often sell for more than their less popular counterparts.

Introduce Subscription Practices to Drive Cash Flow

As a service-based business, you most likely have a lot of recurring customers. The problem is, you may not know when they are going to be buying again.

By rolling out a subscription model for your services, you are able to put your customers on a regular schedule. Create a payment structure where they commit to your services for a month or more at a time. The longer you can contract out their commitment, the more stable your cash flow model is, and the more your business is worth to a buyer.

Invest in Your Workforce

As a service-based business, you’re only as valuable as your weakest employee. Well, maybe that’s not true. But, your employees certainly play a large role in what your company is worth.

Buyers are looking to purchase businesses that have a stable workforce that is likely to stick around. They also like to see that you train your employees well and invest in their continuing education.

By sending your employees to training, you not only gain the value of the knowledge they are exposed to, but you also inspire them to innovate your practices when they come back to work. Investing in your workforce and its education is always a good idea.

For Help Selling Your Service Sector Business

Selling a service sector business isn’t as straight forward as selling a company with an asset-based valuation model. But, if you work with an experienced business broker, you will have a much easier time proving your business’ value to potential buyers. At Dolan Sales, we know how to help you position your company to sell for top dollar. We will guide you through the sale process step by step. Contact us today.