Article by John Denton on preparing businesses ‘ready for sale’ because a business that’s ready for sale, is well worth keeping!
As much as we would like to sometimes, we just cannot change history.
Although, some business owners still try to turn the clock back!
What do I mean by that? Well, every day in business we are creating a history of the business’ performance. Every single thing that happens in the business is there for everyone to see – including potential buyers of the business. And that’s why I keep emphasising to business owners “be aware of the history you are creating.”
One of my mantras is “Keep the numbers going up!”
A business, like shares, is much more attractive to buyers and produces much better cash-flow for the owner, when there is a history of the numbers going up! The most important numbers are ‘adjusted net profit’ to the owner, turnover, and gross profit. The longer they have been going up the better but at least over the last three years. Steady growth is preferred by most buyers not sudden increases or decreases. Consistency is very important and spread over a good diverse mix of clients. It can take years to get to this state.
One bad year can make a big difference in the value of a business and can put buyers off – big time!
Many businesses I get to assess simply do not have a well constructed “marketing and sales process” for their business. This is absolutely critical to keeping the numbers going UP and maintaining consistency and cash-flow for the owner, over time.
Your business needs good lead generation systems, sales conversion processes, companion selling techniques and incentives for the customer to keep coming back. And these things are just scratching the surface. Back these up with awesome customer service and you will have a cash rich business and a valuable asset to sell.
This is why every business owner who has any ambition at all to sell their business one day, and cash out with a good sale, needs to be planning and preparing their business ready for sale EVERY DAY.
A business that is ready for sale will be cash rich, much easier to manage, run without the owner, be much more successful and will attract buyers. This is the situation you want to be in so that you can have options to sell for the price you want, when you want to. You should be in control of the whole process.
If you want a business assessment, or want to fast track your learning on the developing a “cash rich” business that’s “ready for sale” consider attending one of my half day seminars on the topic. To get the details, go to www.johndenton.com.au