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6 Ways to Make Your Business More Appealing to Buyers
When beginning the process of selling your business, it’s important to consider what you can do to attract the right buyer. A little preparation will help you sell your business to the right buyer for the right price.
Here are six ways to make your business more appealing to buyers:
Put yourself in the buyer’s shoes.
Before you begin marketing the sale of your business, it’s crucial to start with the end in mind: What does a buyer want, and how will they profit from purchasing your business?
Buying a business represents a considerable risk to the prospective buyer. Often, they are using a large portion of their savings to make the purchase, and this will likely be their first experience owning and operating a business.
It’s easy to look at your business through the lens of your own experiences. After all, the time and effort spent building your business are important to you. A potential buyer, however, will have different goals and objectives.
You need to help them clearly understand your business's value and future potential.
To help you determine what a potential buyer is looking for, ask yourself the following questions:
What does a potential buyer value?
How scalable is your business?
How can you help a buyer see themselves running your business?
What do your financial records indicate about the future of your business?
How transferable is your business?
Understanding a prospective buyer’s goals for the purchase of your company can help you prioritize what needs to be focused on while preparing your business to be marketed.
Review, analyze, and prep financial documents.
One of the most important factors to a potential buyer is the financial soundness of your company. Preparing and presenting clear and accurate financial information to a potential buyer is imperative to the sale of your business. An educated buyer will want to see the following:
The past three years' profit and loss statements
Tax returns
Balance sheets
Previous bank statements
Lease agreement
Work with an outside accountant to help you create some of these documents. Having a CPA on your team of advisors helps to validate the numbers you are providing to possible buyers, potentially increasing your asking price.
Consider the appearance of your building.
In some ways, selling a business is similar to selling a home. For example, the appearance of your brick-and-mortar business can leave a lasting effect on potential buyers. What can you do to ensure a positive and inviting experience? Consider the following:
Are there any minor renovations that need to be finished?
Does your office space look and feel inviting?
Is there anything outside that needs to be spruced up to improve curb appeal?
Do any areas need to be cleaned up or organized?
Can decor be added to make specific areas feel more welcoming?
You want to ensure that your business leaves a positive impression on a potential buyer. Simple updates to the appearance of your business, both indoors and out, can aid in your success.
Prepare your website for viewers.
One of the first things a potential buyer will likely do when researching your business is to review your website. Is your site ready for viewers? Here are a few things to keep in mind to ensure your website is clean, functional, and leaves possible buyers with a favorable impression of your business:
Make sure your business website is easy to navigate and functional.
Consider updating and refreshing your website’s design.
Ensure that what your company does is clear, concise, and evident on your home page.
Fix any broken links.
Include social share links and follow buttons.
Incorporate easy to understand language.
It’s also wise to make sure your social media pages are up to date. If they are outdated or rarely used, consider updating or deleting them.
Improve brand awareness.
Brand awareness increases the possibility that potential buyers are already familiar with your business and brand. Additionally, focusing on brand awareness can improve sales and encourage repeat purchases from your customers, all positive factors for possible buyers.
To increase your brand awareness, consider concentrating on the following:
Ask your customers to submit online reviews.
Share positive customer reviews both on your website and social media pages.
Share case studies via LinkedIn articles and blog posts.
Be personable online.
Share your company’s story and history.
Increasing your brand awareness will help potential buyers recognize your brand and ensure your company has a positive reputation.
Look to the future.
A business with little room to grow or a bleak outlook on future profits can be challenging to sell. Showing potential buyers your future projections helps them feel more at ease about purchasing your business, visualize what’s in store for their future, and understand how they will profit from their investment.
Consider summarizing and presenting the following information to potential buyers:
Any future sales and marketing plans for new products or new markets.
A detailed plan of what you foresee the changes being in the next 3-5 years.
Current repeatable trends that can be continued into the future.
A detailed outline of your infrastructure and processes.
Creating a successful exit strategy and ensuring potential buyers that your company has room to grow can be the deciding factor for a potential buyer.
Need help?
Making your business more appealing to customers may take time and effort. But, the payoff of maximizing your profits and finding the right buyer for the right price will be worth it. Considering selling your business and looking for more ways to attract potential buyers? Contact us today for a free consultation.