To sell a business for the best price possible you need to be ready. Accounts, systems and processes, supplier contracts, staffing issues…. all of it needs to appeal to a buyer.
Getting your business for sale requires your ability to look at your business from a buyers’ point of view and give yourself an honest verdict on the entire picture; would you purchase your business yourself?
Because you are emotionally invested in your business it is almost impossible to answer this question and the pink glasses need to come off to see the actual business in front of you. This is where a business broker comes in handy as they have all the facts, figures, historical data needed to tell you the true value of your asset.
Generation Y: tech savvy and ready to BUY
Generation Y is more tech- savvy than any other generation, is more driven and more demanding than all generations before them. They will view your business in a complete different light. They can see opportunities to implement more efficient ‘modern’ technologies in your business but they are much more cautious to purchase a business in, what we would describe as the ‘more traditional industries’; think retail from a shop, product manufacturing and some businesses offering services from a shop.
Business is changing and this is exactly the reason why THIS is the right time to sell your business right now. Especially a business that is moving forward; one that has some systems in place, and most importantly has some more growth potential by implementing fresh ideas from a new owner before it is blossomed out and looks like an old concept, like we have seen with video shops and print businesses for example.
The advantage of selling your business NOW
There are many reasons to sell your business sooner rather than later. Two main reasons include:
- The baby-boomers will have to sell in order to capitalise on their retirement investment. This would push more businesses on the market and it could be hard to stand out in an open market if the market is flooded with other, more average performing businesses in the next few years.
- A younger generation is coming to buy most off the good businesses that are standing out from others in an open market. These businesses typically are already performing well within their market but have even more potential, given the right systems & management.
This generation is looking to buy a business that is relevant in todays business environment; an ever fast-changing business world where new rules apply. The old way of doing business could seem useless and worth nothing like it would be in these present times. Because the world is changing so fast you will have to think of a way to capitalise on your current investments and realise that “Management Trumps Idea”. This is a good time to revaluate the way you do business currently, and how you could adapt to the change that is coming. We see lots of businesses that change ownership because the old owners didn’t feel they could keep up with the modern way of doing business. If you feel you can’t get your business to its full potential it may be time to look at other options….
Are you ready to sell?!
When you have read the whole article, chances are you have qualified yourself to, at the very least, look at the option of an Exit Strategy. Like having a road map, engaging a Business Broker is a backup when all other options fail.
If you want to drive a car from Auckland to Queenstown it is important to know that there is a possibility of the Dessert Road being closed in winter and that you need to plan an arrival time in Wellington that connects with a departure time for the Interisland ferry to Picton. Not knowing this may have all sorts of consequences; unnecessary delays and extra costs for a hotel in Wellington to name a few.
Having a roadmap for your business is the same; an appraisal value of your business and bullet points to get an understanding of some improvements you need to make may be all you need to get a better sale price.
Engage a Business Broker early in the process, rather than later. It will save you time, money, frustration and you will find that it will make the transition process much easier for all parties involved.
FREE LINK Northland downloads:
FREE Booklet outlining the sales process: Managing The Sale of Your Business
FREE Booklet outlining other options to an Exit Strategy