Like houses, businesses need renovations before they are ready to sell
If you are going to sell your house, you might do certain things to make it sell faster. You may replace the worn carpet, patch the roof, repaint the bathroom and complete other projects that make your home as attractive to buyers as possible. But what if you are thinking of selling your business? Here are some great tips that show you how to spruce it up and increase the “saleability” of your business.
Make it Teachable
A sellable business does not need you to survive and thrive. Teach your employees to do most of the work so your business can continue under another owner.
One of the best ways to test this aspect of how sellable your business is is to go on vacation for a week. Leave your iPhone at home, do not check your emails and stay out of contact for five consecutive days. If the business thrives during that five-day test and continues to operate well, it is likely a very sellable company.
Make it Valuable
A sellable company has something that is not easily replicated by others. It fits in a niche without much competition. Carve a unique spot in a larger market by offering something different. Create services and products that provide true value, establish a well-known brand and build a sold business credit history.
Make it Repeatable
The most challenging part about making your business more sellable is building a recurring revenue model. Potential acquirers need to see how revenue will continue to come in even after you are gone. The most valuable form of revenue to potential acquirers is in the form of contracts. Make sure all your contracts contain a survivor clause to ensure potential buyers that the obligations of your customers will survive a change in ownership.
Are you considering selling your business? What steps are you taking to ensure it is sellable? Share your best advice with our readers in the comments section below!