Can I Sell My Business?

The real question is, can you charge – and get – what it’s really worth to you?

Even if you’re not ready to sell yet, it’s wise to prepare now so that you’ll fully reap the profits of your success. Start establishing your business’ value now and boosting its sellability as needed so that you get a truly fair price for all of the effort you’ve put into it.

Here are just a few ways you can think about improving the value of your business.

Establishing a Monopoly Control

Your brand is important; if you don’t have one, you need to create one now. Even if your business is small, you still need to set yourself apart from your competitors and become a leader in your market.

If you don’t have a brand yet, develop one by determining your “unique selling proposition;” this is a statement or phrase that clearly defines just how you’re better and different than your competitors.

Establishing a recognisable brand for monopoly control is important because it gives you:

• Free advertising – once customers know who you are, a simple glance at your name will produce instant recognition.
• A way to stand out from the competition – your brand instantly sets you apart from your competitors, and can instantly establish you as the industry leader in customers’ minds.

Demonstrating Your Business’ Growth Potential

You’ll need to be able to show potential buyers both your business’ past growth, and its potential for future growth.

You can demonstrate this with your financial performance. How much of your profits, revenues, and client or customer base grown in the years since you started your business? If you have expanded to other geographic locations or acquired competitors’ businesses, detail this as well.

Utilising the ‘Switzerland Structure’ Management Style in Your Business

Do you depend largely (or completely) on one client, vendor, or even one employee to keep your business afloat and profitable? What happens if your employee quits, your vendor goes out of business or your client moves on to someone else? Will your business struggle, or even collapse?

Similarly, do you micromanage everything, so that your employees can’t function without you?

If any of the above rings true for you, potential buyers may see significant risk in buying your business because of its potential for collapse or struggle.

What to I Need to Change Before I Consider Selling My Business?

You can fix things so that your business is an attractive prospect for potential buyers:

• Establish multiple vendors.
• Train employees to do more than one job in your business; they’ll be able to assume responsibility for someone else’s job instantly if needed.
• Step away from the business once in a while and let your employees run it so that they learn self-sufficiency.

Making these changes will boost your business’ value  and your sale price once you’ve decided to sell.

We’ve put together a free guide to developing a sellable business, with 11 practical ways to ensure your business is built to sell.