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by | Jul 23, 2024 | Broker Advice, Sell Your Company

bool(false) Are Your Sales and Profits Meeting Your Expectations?

Are Your Sales and Profits Meeting Your Expectations?

Plan Early and Enhance Your Business’s Attractiveness to Buyers

Did you know that 80% of businesses don’t sell when put on the market, and 70% of family-owned businesses do not transfer? Why, you ask?

When you were younger, increasing sales was easier, partly because you had more energy. However, as you enter retirement age, maintaining the same level of drive and stamina becomes more challenging. This is a critical time to consider the future of your business. Planning to sell now ensures that you can transition smoothly into retirement while maximizing your business’s value and attractiveness to buyers. Choose your targets carefully, not what is easiest, but what will generate the most results.

Starting the process early gives you ample time to prepare and do some thinking on the matter, allowing you to identify and implement necessary improvements, streamline operations, and enhance your business’s attractiveness to potential buyers. To avoid surprises, get an evaluation of what your business is worth today with a business broker to get a better idea of the job ahead of you.  No blue-sky reality. Remember, whatever the mind can conceive and believe, the body can achieve.

One Key Strategy

In today’s competitive market, one key strategy stands out: customer reviews. Encouraging customers to leave Google reviews can significantly enhance your business’s attractiveness.  I have seen it with my customers. Positive reviews build credibility and trust, making your business more appealing to potential buyers. If you receive a negative review, addressing it promptly and making things right demonstrates your commitment to customer satisfaction, further enhancing your reputation.

For instance, consider the case of a startup roofing company, a customer of mine, who asks every customer for a review. They now boast over 100 five-star reviews, doubling their sales each year and achieving profits of over $2 million per year. I encouraged them to go one more year before selling. The extra year will nearly double the selling price, especially getting past the $1 million annual cash flow.  At $1 million and above in cash flow, many new opportunities will present themselves.

What sets this company apart is its unwavering commitment to continuous improvement. It constantly seeks better ways to do business, from providing precise quotes to maintaining a simple showroom. It holds weekly meetings to discuss opportunities, and its philosophy is to satisfy every customer, whatever it takes. This success story should inspire and motivate you to take similar steps to enhance your business’s value.

As we age, maintaining the same energy levels as in earlier years becomes challenging. That’s when you should start planning to sell. By beginning the process early, you can ensure your business is in the best possible shape to attract qualified buyers.

Effective Strategies for Boosting Value

With over 45 years of experience in selling businesses (of all sizes and types), I can help you analyze your business and suggest inexpensive improvements to boost its value. This might include implementing effective strategies like soliciting positive customer reviews, optimizing your operations, and maintaining a strong reputation for customer satisfaction. All of these factors contribute to making your business more attractive to potential buyers. Remember, it’s only one or two years of hard, focused drive to get to your dream; it’s not forever.

As Albert Einstein said, “To keep doing what you have been doing and expect a different outcome is insanity.” Start implementing the suggested ways to improve your business and see where that can take you.

I offer this business analysis at no cost or obligation to you. Call me in confidence at 954-579-4687 to discuss how we can enhance your business’s value and prepare it for a successful sale.

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