Selling A Business
Look at your Business from a Buyers point-of-view...
Most business owners never receive "full value" when selling their business because by the time they come to put the business on the market; either its too late to do anything about it...or the owner has no energy or time to properly prepare the business for sale. We advise our clients to take a "good look" at their business from a buyers point of view. Act as though you are undertaking due diligence prior to purchase. This applies whether you own a micro or a macro type/style business. We advise there are numerous aspects that one can look at to "ready" business for sale.
Reason for Selling must be genuine...
Don't "invent" reasons for sale; such as a strategy which is transparent and will not achieve the "market price".
Ask Yourself - would you Buy this business?...
Take a good look at the strengths and weaknesses of the business; boost the strengths and fix the weaknesses.
History of Ownership...
If your business hasn't a long track record be prepared to justify profit or sales, in one way or another; for example
* trial period
* performance clauses
* Without solid history, be prepared to wait a period before full purchase price is paid.
Brand, Reputation and Integrity...
Nurture your reputation by the quality of the products and services you deliver. Always be conscious of the image you project.
Customer and Client Agreements in Writing...
it may be AOK for you to believe your contracts, though oral are safe; however a buyer requires more assurance. Written contracts provide a measure of that assurance. If you rely on a single supplier, you are at risk, unless you are protected by a long contract and even if there are no guarantees.
Commercial and Intellectual Property should be protected...
Ensure your IP is protected. Register trademarks, patents and designs.
Business Analysis...
If you do not have trends in sales, explain to them by way of seasonal influences et cetera. Introduce new services into your business to help "smooth" over the bumps.
Property - Tenure Considerations...
Lease must be strong and sufficient in length and contain reasonable terms and conditions. Perhaps negotiate a new lease before placing your business on the market for sale. Have your tenure paperwork reviewed and take advice as required. Ensure property achieves statutory requirements.
Employee Arrangements...
Your staff are one of your greatest assets. List the job descriptions, duty statements, employment terms and conditions.
If possible reduce your own working hours...take time "off".
Financial Considerations...
Maintain reliable , compliant and regular bookkeeping systems.Computerise.if possible,(eg XERO, MYOB)...use "cloud computing" processes.Have BAS reports and ATO returns up to date and available.. Also, maintain good records of Debtor and Creditor activity. Maintain budget and cash flow systems.
IP, IT Systems should be maintained...
If you are going to set a programme of two (2) years or more, you may consider all aspects of computerisation, including multi digital platforming. perhaps consider external advice and service.
Creditors and Debtors...
Have a win-win spread of both Suppliers (Creditors) and Customers (Debtors). Ensure you have good "capture" Debtors cycles in place
An accurate assessment of your Competition...
Identify your competitors both "direct" and "indirect". Assess their weaknesses and strengths. Disclose your point(s) of difference(s).
Ensure SOP's are appropriate...
Overview and detail your business operation. Systemsise your business in the most appropriate manner and way. Should include accountability.
Stock Details...
If your business has stock, use a appropiate stock control system; example "first in - first out", "par inventory", "stock turn" etc.
Sales, Marketing as well as B2C and B2B Development...
This is a viable and variable part of a business - depending upon the type and style of a business. Even Funeral Directos, Accountants, Lawyers - allrequire some form of exposure. Digital marketing and Socil Media platforms are now important in the scheme of things.
