Even if you are not thinking of selling your business at the moment, as the owner, you would not want to your sales to be declining. But when it is time to sell your business, it is critical that sales are not declining. Potential buyers want successful businesses. For most business owners, receiving all of the proceeds from the sale of a business is an important part of retirement funding, so getting all cash at closing is really important – and that usually won’t happen if you can’t show a healthy sales record.
To get all cash at closing, a buyer either needs to have all cash or be able to get a bank loan. Most banks will want to see at least three prior months of stable or growing sales. The concern of banks and potential buyers over declining sales is the unknown aspect of where it will end. Additionally, having a business that can get a bank loan, SBA-guaranteed or otherwise, will provide the opportunity for a greater number of potential buyers.
To find a solution to a downward sales trend, you have to work smarter and harder, and do things differently. Asking well-thought-out questions of customers and potential customers may help. An easy-to-read book that might help you look as this issue differently is Ask Questions, Get Sales by Stephen Schiffman, available on Amazon.com. The essence of asking the right questions is to find out what people do, then finding ways to help them do it better.
If you would like a confidential, no-obligation analysis and discussion of what you can be doing now to prepare for when you are ready to sell your business, please call (888-893-6661) or e-mail (firstname.lastname@example.org) me. I serve customers nationwide. To learn more about my background and see customer recommendations, visit my LinkedIn profile at http://www.linkedin.com/in/dolansales.
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