45 things to do before you put your business on the market
-
Upload
tony-arena -
Category
Business
-
view
179 -
download
1
Transcript of 45 things to do before you put your business on the market
45 WAYS TO BUILD VALUE IN YOUR BUSINESSTHINGS YOU WILL WANT TO DO BEFORE YOU PUT YOUR BUSINESS ON THE MARKET
CREATE A WORKBOOK AND CALL IT “MY BUSINESS SALE”
WHENEVER YOU SEE THIS ICON ON THE SLIDE IT IS TELLING YOU THAT YOU NEED TO MAKE AN ENTRY INTO YOUR WORKBOOK
Or use our template at growandsellyourbusiness.com
WHEN ARE YOU GOING TO SELL YOUR BUSINESS AND FOR HOW MUCHJUST TAKE A GUESS AT THIS STAGE AND Y O U W I L L F I N E - T U N E T H I S V E R Y IMPORTANT EQUATION AS WE GO ON. Y O U R G U E S S W I L L B E C O M E M O R E EDUCATED. WRITE IT IN YOUR WORKBOOK
A S K T H E Q U E ST I O N “ W H O I S GOING TO BUY YOUR BUSINESS?”ONCE YOU KNOW WHO MIGHT BUY YOU CAN START TO THINK ABOUT WHAT THAT BUYER WANTS AND ADAPT YOUR BUSINESS ACCORDINGLY. A MUM AND DAD (PRIVATE) BUYER WANTS DIFFERENT THINGS COMPARED TO AN INDUSTRY BUYER
CREATE A BUSINESS PLAN.
A GOOD BUSINESS PLAN ANSWERS THERE QUESTIONS: WHERE ARE WE NOW , WHERE DO WE WANT TO GO AND HOW ARE WE GETTING THERE
One page business plan available at
growandsellyourbusiness.com
FIND A GOOD ACCOUNTANT
YOU WANT ONE WHO IS GOOD BUT ALSO GOOD VALUE SO YOU CAN ENGAGE IN PLANNING AS WELL AS COMPLIANCE WORK
FORM YOUR TEAM
FIND A GOOD LAWYER
YOU NEED ONE WHO HAS EXPERIENCE WITH SMALL BUSINESS AND TRANSACTIONS TOO.
FORM YOUR TEAM
FIND A FINANCIAL ADVISOR
YOU SHOULD BE PLANNING HOW MUCH YOU NEED TO RETIRE AND THEN WHAT YOU ARE GOING TO DO FOR THE REST OF YOUR LIFE.
FORM YOUR TEAM
FIND A BUSINESS BROKER
A BUSINESS BROKER CAN ADVISE ON BUSINESS VALUE, WHEN YOU SHOULD SELL AND HOW TO GO ABOUT IT TO MAXIMISE BUSINESS SALE PRICE. CONSULT ONE EARLY
FORM YOUR TEAM
ASK WHERE YOU ARE IN THE INDUSTRY CYCLE
You need to be selling your business before your product or service is out of date or replaced by a cheaper and more efficient variety. Make yourself future-proof or get out.
The Cycles
ASK WHERE YOU ARE IN YOUR LIFE CYCLE
How well are you performing mentally? How long have you got to go before you start to become less able to operate or build the business. Do you want to sell this one and buy another? Are you stale? Don’t leave it too late.
The Cycles
ASK WHERE YOU ARE IN YOUR CALENDAR CYCLE
What is the best time of year for you to sell. This is the shortest of the cycles but still important for your sale planning. Better to sell coming into your busy time or when stock is low. Think about it.
The Cycles
ASK WHERE YOU ARE IN THE ECONOMIC CYCLE
This is the longest of all the cycles and is probably one of the easiest to plot.
The Cycles
You won’t know exactly when the boom or bust will end but statistics can give you plenty of clues for educated estimates.
SYSTEMS:
CREATE AND DOCUMENT YOUR SOCIAL MEDIA POLICY AND PLAN. THIS GIVES CERTAINTY AND IS A CRUCIAL PART OF HANDOVER.
SYSTEMISE YOUR SALES OPERATION
JOIN A NETWORKING GROUP. THEN WHEN YOU SELL, YOUR SUCCESSOR CAN ALWAYS SLOT INTO YOUR PLACE
SYSTEMISE YOUR SALES OPERATION
CREATE A SALES SYSTEM BLUEPRINT. THIS TAKES THE GUESSWORK OUT OF SALES AND MARKETING AND CREATES. SEE OUR WEBSITE FOR MORE
WORKING CAPITAL
REDUCE THE NEED FOR EXTRA MONEY IN THE BUSINESS. REDUCE STOCK LEVELS. REDUCE DEBTORS. EXTEND TERMS WITH CREDITORS. FACTOR YOUR DEBTS.
IMAGEMAKE SURE YOU PRESENT AN ATTRACTIVE IMAGE. CLEAN UP YOUR PLACE, OFFICE AND FACTORY. YOU WANT A BUYER TO SAY “I’D LOVE TO WORK HERE” STEP BACK AND TAKE AN HONEST LOOK
MAKE SURE YOUR PROFIT STATEMENT IS PROVABLE
BUYERS WILL BE HAPPY TO FIND A BUSINESS THAT HAS A VERIFIABLE HISTORY. THEY WILL DISCOUNT THE PRICE IF THERE IS UNCERTAINTY, MESSINESS OR HINT OF MISREPRESENTATION
√
ENSURE YOU HAVE AN EVEN SPREAD OF CLIENTSTHIS WAY YOU ARE NOT EXPOSED IF A MAJOR CLIENT LEAVES AND TAKES THEIR BUSINESS ELSEWHERE. GROW THE LONG TAIL OF YOUR CLIENT LIST
INVEST IN YOUR PEOPLE
HIRE STAFF WISELY AND TO FILL GAPS THINK OF OUTSOURCING TO OVERSEAS WORKERS IF POSSIBLE
INVEST IN YOUR PEOPLE
PAY YOUR STAFF WELL. HAPPY STAFF STAY LONGER AND THAT IS A KEY STRENGTH WHEN YOU ARE SELLING
INVEST IN YOUR PEOPLE
HAVE REGULAR TRAINING SESSIONS. STAFF WILL STAY LONGER AND IT SHOWS STABILITY IN A BUSINESS TO HAVE LONG SERVING STAFF.
INVEST IN YOUR PEOPLE
BUY UNIFORMS FOR YOUR STAFF. THEY WILL FEEL PART OF A TEAM AND IT WILL HELP WHEN YOU SELL. APPEARANCE IS EVERYTHING.
KEEP A REGISTER OF EMPLOYEES WITH
PAY RATES, HOURS WORKED, SPECIAL
SKILLS AND LENGTH OF EMPLOYMENT.
KEEP IT UP TO DATE
EMPLOYEE REGISTER
MAKE YOURSELF LESS IMPORTANT TO THE BUSINESS
(THIS MAKES YOUR BUSINESS MORE TRANSFERABLE AND HENCE MORE VALUABLE)
DELEGATE MORE TO KEY STAFF IN YOUR BUSINESS.
MAKE YOURSELF LESS IMPORTANT TO THE BUSINESS
(THIS MAKES YOUR BUSINESS MORE TRANSFERABLE AND HENCE MORE VALUABLE)
TRUST IN THE PEOPLE YOU HAVE DELEGATED TO AND TAKE MORE TIME OFF FROM YOUR BUSINESS.
BUILD SALES
BUILD SALES BUT IN A WAY THAT IS REPEATABLE AND
SUSTAINABLE. NOBODY WILL
PAY MONEY FOR SALES AND
PROFIT THAT ARE ONE OFF OR
BUILT ON HEAVY ONE-OFF
DISCOUNTS
HAVE A GOOD SPREAD OF SUPPLIERS
DON’T BE A THE MERCY OF ONE SUPPLIER. GIVE
YOURSELF CHOICE. SHOP AROUND.
BUILD YOUR ONLINE STRENGTH
THE MORE YOU TRADE ONLINE, THE LESS VULNERABLE YOU ARE TO PERSONAL RELATIONSHIP RISK AT TRANSACTION STAGE
BUILD BRAND. BRAND IS BUILT UP OVER MANY
OF YEARS. IT MAKES YOUR BUSINESS DESIRABLE AND
VALUABLE AND IS THE FEELING YOUR
CUSTOMERS OR POTENTIAL
CUSTOMERS GET WHEN THEY SEE OR
HEAR YOUR COMPANY OR
PRODUCT NAME
BRAND
A GOOD BRAND SAYS TO THE MARKET
“TRUST ME AND I WILL LOOK AFTER
YOU”. BE READY TO SHOW CLIENT
TESTIMONIALS, PRESS WRITE-UPS AND ANY
CUSTOMER SATISFACTION
SURVEYS YOU MAY HAVE.
BRAND
PROTECT YOUR INTELLECTUAL
PROPERTY. MAKE SURE TRADEMARKS
PATENTS AND DESIGNS ARE
REGISTERED. START A REGISTER OF
YOUR COPYRIGHTED MATERIAL
INTELLECTUAL PROPERTY
MAINTAIN A GOOD CREDIT RATING.
YOUR CREDIT HISTORY IS
SEARCHABLE. BAD CREDIT HISTORY
WILL MAKE A BUYER NERVOUS ABOUT YOUR BUSINESS.
CREDIT RATING
UNDERSTAND YOUR COMPETITORS.
WHAT DO THEY DO WELL? WHAT COULD
YOU COPY? WHAT DO YOU WANT TO
COMPETE ON?PRICE? SERVICE? LOCATION? FUN?
SPEED?
COMPETITION
PREMISES
IF POSSIBLE-BUY YOUR PREMISES. THIS GIVES YOU
MUCH MORE FLEXIBILITY AND POWER WHEN IT
COMES TO SALE
PREMISES
IF YOU OPERATE FROM PREMISES,LEASE CAN BE
CRITICAL. MAKE SURE YOU HAVE SUFFICIENT LEASE OR GET THE
LANDLORD TO AGREE TO GIVE A GOOD LEASE TO A BUYER
REASON FOR SALEBE HONEST ABOUT THE REASON FOR
SALE. RETIREMENT IS A GOOD ONE BUT IF YOU ARE
SELLING BECAUSE YOU HAVE COME
TO THE END OF THE ROAD OR LOST
ENERGY, SAY SO. THIS BUILDS TRUST
AND WILL HELP WITH THE SALES TRANSACTION.
TELL YOUR STORY VIA A COMPANY BLOG. THIS IS AN INEXPENSIVE WAY TO COMMUNICATE WITH
YOUR CLIENTS AND SUPPORTERS. THIS FORMS PART OF YOUR
INTELLECTUAL PROPERTY