Sell My Business Top 3 Value Tips
Whether you want to sell your business for top dollar or are committed to having your business in tip-top shape to hand to the next generation, these 3 Value Tips will pave the way to a successful and profitable business transition.
1. Understand Your Personal Value. If you’re too valuable to your business, you’ll drive the value of your business down. To maximize your market price, you must minimize the degree to which your business depends on you.
Where do you start? One of the best places to start is to stop answering questions. If you’re feeding answers to your team they are too dependent on you. Creating independence for your team reduces the dependency your business has on you and increases your business value. Next, make a list of all the tasks you perform for your business and begin to put in place documented systems to train others to handle that work. To keep the best of you in the business, be sure to infuse both heart and logic into your systems.
2. Know your Market Value. When you know the value of your business in today’s market, you can easily identify the gap between today’s value and your ideal sales price.
Where do you start? Get an Opinion of Value. What you think your business is worth is often not the market value - or what a buyer would realistically pay. If you're at the point where the foreseeable future (in the next 5 years) includes selling your business, you need to get an Opinion of Value; a detailed analysis of the market value for your business as it is today.
3. Know the Drivers of Business Value. There are 8 Drivers of Business Value and when it comes to understanding what buyers value, what you don’t know can hurt you. Once you know how your business scores in each of these 8 Key Drivers you can make the decisions that increase your score and maximize your business value.
Where do you start? Get your Value Builder Score. Comprised of the 8 Key Drivers of Business Value, The Value Builder Score is a tool that was made famous by John Warrillow in the best seller, "Built to Sell."
This is a call to action; every business owner should understand what they can do to improve the sell-ability of their business. You may not want to sell it today, but you may not have any choice but to sell it tomorrow - life happens in ways we can’t expect. Being prepared is within your control! Take action today to increase the value of your business.