3 Reasons Your Business Will Not Sell
In my time as a business consultant and broker, I have consistently come across the same three reasons that a business will not sell. It is really remarkable to me… these things are easy for an owner to do, yet I see owners neglect these basics all the time.
Fortunately, if you have been let some things slip in your company, now is the time to get back on track!
Owners sell their businesses all the time. It is often a difficult decision, and it can happen for any number of reasons. Perhaps you want to retire and spend your free time traveling…or you want to cash in and purchase another venture. Maybe you’ve had a very successful run and you just feel that the time is right. Whatever the reason, when you are ready to sell you want the best price for the business
that you’ve spent a great deal of time building.
Reason 1: Financials
First, let’s talk financials. I have spoken with owners and toured facilities of some great places, but when I have asked for taxes and financials, the books are seriously lacking. If you’re thinking of selling, you MUST get your finances in order. No one will buy based on your word- the numbers need to do the talking. A prospective buyer will most likely be getting some financing, and any bank or investor will
want solid financial details.
Reason 2: Operating Procedures
Second, take a close look at your operating procedures. The buyer will want to know all the ins and outs… this could be in the form of procedures for making a specific product, organizational charts, vendors, schedules, etc. When procedures are clearly in place, it gives the buyer a tremendous amount of confidence that they are taking on a well-run operation that will continue to produce revenue, even with a change in ownership.
Reason 3: Curb Appeal
Last, think very carefully about the “curb appeal” of your business. Is your reception area clean and welcoming? Is the front of the building clean with trimmed hedges? Do you have broken equipment that needs to be replaced? Try to look at your establishment with a critical eye… does anything stand out in a negative way? I’m not saying you must redecorate or spend a fortune in landscaping- just make sure that your place looks tidy. The same goes for online presence as well! If you have website, make sure the links work and the information in accurate and relevant. Prospective buyers don’t wish to find a website that is out-of-date, or show up to visit your place and see a non-working soda machine or burned-out lights in the dining area. Think about repairs and cleaning before it’s officially on the market!
If these things seem simple, well, that’s because they are! It’s just a matter of making sure you are presenting your business at it’s best so that you can earn top dollar for it when it’s your time to sell.