Think Like A Buyer To Sell Your Business
For most business owners, selling their business is the single largest transaction of their lifetime, yet many do little to prepare for it. A great place to start is to put on what we call your “Buyer’s Glasses” to scrutinize your business as if you were going to purchase it.
Buyers look for the hidden flaws, run the numbers, check your online presence, assess your assets, and consider the benefits of ownership. By slipping the Buyer’s Glasses on, you can take a critical look at your business.
Put on Your Buyer's Glasses and consider the following questions:
- Will I be buying a business or a job?
- How much time will I need to put into the business?
- How dependent are the customers on the owner?
- How dependent are sales on the owner being there?
- Is this business overly reliant on a key employee, vendor, or customer?
- Will the owner stay around to help transition the business?
- Is there anything unique that distinguishes this business from its competition?
- Is the cash flow steady, or does it fluctuate?
- What will my return on investment be?
- Is there opportunity to grow sales to existing customers, or add new customers?
- After the sale how much operating capital will I need to cash flow the business?
- Are there legal or environmental liabilities to consider?
- How recently was the technology updated?
- Are there documented operating systems?
- What is the online presence? Social media, website, customer or employee reviews?
As you view your business with the skepticism of a buyer, you will begin to critically consider the pros and cons of taking out a loan and taking on the risk to become the new owner. The Buyer’s Glasses will help you see the opportunities you have to ensure your business is tuned up and ready to transition to new owners, while bringing you top dollar when you’re ready to sell.
To get an expert look at your business through the Buyer’s Glasses – get your Value Builder Score. It’s free and confidential. Created by the author of the best-selling book, Built to Sell, by John Warrillow, it only takes 13 minutes and will give you an immediate view of how your business scores in 8 Drivers of Business Value.