It is sad that after many years of toiling and hard work to move your business up the ladder and even having a proper business premises after moving out of the basement, no one interested in buying when you want to sell your business. You finally retire and your business grinds to a painful halt, you are leaving a lot of money on the table. Think of inspiring designers like Coco Channel and how small they started and the businesses are still growing big even when the owners are no longer running the business. This is how they did it.
DON’T BE THE SUPERMAN
Avoid being the “Hubs and Spokes” business model that depends on the owner to function. You act like the gasoline in the car, the car cannot run without it but it still runs out and you still need to refuel the car. The car is lucky it can be refueled and even repaired, but you will wear out. In other words do not be the owner that performs all critical tasks from product design to marketing and management. Learn to delegate responsibilities such that the business runs even when you are away without a phone or a computer to be in touch.
HIRE TALENTED PEOPLE TO RUN THE BUSINESS
Your employees are not just mere helpers to assist you run the business. Hire competitive people whom you can afford not to assist but to run the business, put them in critical executive roles, and then let them take on larger roles as the business grows. In this way even a prospective buyer would be more comfortable buying the business and still keep the executive team. It will also make the transition process easy. It is always good to feel wanted or even needed in your business. However, think of what you could be taking to the bank because of your efforts over the years. Letting go is definitely worth it.
This is the golden rule: when you are creating a business that you would be looking to sell is to generate profits year after year. Nobody wants to buy a business that is not making profits or one that is even not promising to make any in the near future. Maximize on making profits so that your records would appear impressive to any prospective buyer.
If the profits are increasing each year the buyers assume you have hit a formula for running the business. It assures the buyer that the profits will continue to grow each year. Once they have the business in their hands they simply add more money into the business, improve on what is wrong and move it to the next level.
DO WHAT YOU DO BEST
For some it is software, others it is a secret ingredient, and others responsiveness and quick service to serve their customers is what keeps them on the radar of worldwide sensation. Your business may not have reached that point yet but it is that small special deed that you do that will keep your business at the edge of competition. This is important to the buyer so he is assured that competition will not kick him out of the business.
For more information on selling a business visit www.intelligentbusinesstransfer.co.uk