Is your business sellable? Most small business owners don’t even think in terms of selling a business because to them its their “baby” and they become co-dependent on their business. I always think of this as “small business suicide” because at some point in your life you may NEED to sell your business so you should always think in terms of would someone else want it. Thinking about the opportunity to sell also let’s you look at your business in a more objective manner because you look at the business in terms of whether other people would want it or not. And you are more likely to make better decisions to ensure the success of the business.
Think about what makes your business unique, this is always an attractive lure to prospective buyers. Think about recurring revenue, as this will also attract buyers. Does your company have future long term contracts? Most owners think that financial history is important to buyers when in fact quite the opposite is true. The past may help to predict the future but future long term contracts cinch the sell because prospective buyers know beyond a shadow of a doubt that they will make money Future contracts are also a great way to attract investors should you need additional funds for the business. When small business owners go on The Shark Tank, you will see that all of the savvy investors and potential buyers want to know about future contracts, and how unique the item is. They are NEVER interested in a product that another competitor can rip off and while they like seeing the financial history they are typically more concerned with the small business owners’s ability to make money in the future. If they don’t see a future for revenue and profit they typically won’t buy your business nor will they want to invest in it.
We like and look for Business that have three basic elements
1)PAST= a good History – hopefully with constant growth , but not always necessary.
2)PRESENT= a good position within it’s industry –hopefully some recognition.
3)FUTURE= potential future growth – a scalable business.
Keep these issues in Mind and someday your business will be able to sell itself.
Sell your Business with LISITEN ASSOCIATES BUSINESS BROKERS.
