Creating a profitable strategy for selling your business will require the efforts of a team. Not only will you need a successful business broker to steer you through the process, but you will also need to provide them with the tools to do a good job.
Let’s take a look at some of the steps you can take to ensure a successful sale of your business.
1. Invest in Your Team
If your business is too dependent on your as owner and CEO, it will not be a good financial investment for a buyer.
Buyers want to see that you have a team in place that can continue to function after you make the sale. Be sure to invest time and resources on bringing your team up to speed and continuing their education.
2. Create a Diverse Customer Base
No buyer wants to purchase a business that has one or two clients making up the bulk of its business. You need to make sure that your company has multiple revenue streams in order to make it more appealing.
Consider looking for ways to add new clients to your books. As a rule of thumb, it’s best to not have one client making up more than twenty percent of your billings.
3. Automate and Update Your Systems
Buyers will expect your business to be turn-key. That means all of your systems need to be up to date with the latest technology and automated as much as possible.
As we go into the future of artificial intelligence and new systems engineering, being a company that sees the importance of using the latest technology and retraining your workforce as you go will be seen as a major asset to a buyer.
4. Sell Off Excess Inventory
Having excess inventory can kill your deal, particularly if the inventory is perishable. Make sure that you find ways to reduce your inventory before attempting a sale.
You may need to locate buyers from your inventory outside of your industry to make sure you’re not feeding your competitors low-cost goods.
5. Remain Involved Until the Deal Goes Through
While some business owners are obsessed with the negotiations surrounding their sale, others prefer to take a hands-off approach letting their business broker handle the conversations.
Unfortunately, even the best business brokers aren’t mind readers and can miss critical information if it isn’t supplied to them by a seller. Make sure you stay up to date on the happenings of your sale until it is finalized.
How to Find a Great Business Broker
Selling your business is a stressful process for many owners. But, by supplying your business broker with the right facts and information you can help them put together a great deal.
It’s also important to make decisions that create a balanced customer base and a well-trained workforce. For more advice and help selling your company, contact Dolan Sales today.