Complaints Spawn Complaints Spawn Complaints

As part of the RTA Business complaints series, this week we want to look at the knock on effects of complaints on your business.

We Know About Potential Buyers Here at RTA Business

We know a thing or two about what you need to do, when you decide it’s time to part with your company here at RTA Business. A market leader in the field, we have the largest business database of any UK transfer agent, ensuring that we’ll find the right buyer for your firm, and the right company for you to buy.

We have a lot of experience when it comes to selling a company here at RTA Business, and we know what potential buyers are looking for, and what they most certainly aren’t.

The More Complaints You Get, the Worse It Is

That’s’ why we’ve been taking the time over the last few weeks to talk about the damming effects that complaints can have on your business when you decide to up sticks and sell. If a potential buyer finds out that customers have been complaining about you, they’ll wonder why, and it’ll have a really good chance of turning them off your business.

Of course, the more complaints you have, the more likely they are to impact a potential buyer’s decision. Think of it like this; more complaints suggest that more people have reason to complain, which suggests more problems to deal with for your business; not what a potential buyer wants to hear.

One Complaint Will Spawn Another

You may be thinking at this point that complaints tend to be one offs, that they don’t build up. But they can, and it’s often a case of that if you don’t deal with the problems at hand, then one complaint will spawn another complaint, which will spawn another etc.

Take the energy industry for example. According to the BBC, the Financial Ombudsman has revealed that in the first six months of this year, complaints more than doubled from the same period in 2014; up to 22,671 from 10,598.

Deal With the Underlying Issue behind the Complaint

So why did this happen? Was there some sort of major one off scandal that caused complains to skyrocket? No, all that happened was that the cost of energy continued to rise; the ombudsman found that 84% if all these complaints related to billing.

So you see what happened here? The energy companies didn’t deal with the problem of rising costs, even though it was already causing customers to complain, and what did customers do? They kept on complaining, making the problem worse.

That’s why RTA Business Consultants always suggests you deal with the underlying problem that caused a complaint, to ensure that it doesn’t get any worse, and ruin your chances of finding a potential buyer for your business.

How Can You Get Ready to Sell Your Business?

When you decide it’s time to sell your business, make a handsome profit, and move on, you need to make sure  it’s ready to attract a potential buyer. This week RTA Business lets you know how you can get your business in perfect shape when you decide it’s time to sell up.

RTA Business is a service that specifically exists to broker the right deal for you when you wish to make some money and sell your business on. That means we know the whole process inside and out, and furthermore, we know what you need to do to make sure it’s ready to sell.

Making money off the sale of your business means you have to attract a buyer, and you won’t attract a buyer if all the loose ends aren’t tied up – buyers aren’t exactly known for their desire to deal with what you’ve left behind. That’s why you’ve got to make sure your company is ready for them to take over at their convenience.

The Business Sales Preparation List

So how can you do this, what are the final steps that you need to take? At RTA Business we’ve witnessed countless business owners from numerous sectors position their company’s ready for sale and we found that doing so generally includes:

  • Settling Legal Matters: No buyer will be interested in a business with legal baggage attached, because it could negatively impact their own firm going forward. Settle all legal matter before you even think of selling.
  • Driving up Profit: Profit margins mean everything to potential buyers. They’re the most obvious tool you have at your disposal to show how a buyer can make money from your business. Drive your profits to their maximum potential before you sell.
  • Settling Debt: This is similar to settling legal matters- no buyer is going to want to inherit your debt. If you can, settle or at least mitigate debt obligations before you actually put your business on the market.
  • Protecting the positions of key employees: A buyer will want to know that the people who made your business a success will continue to do so under their leadership, which is why you need to make sure those employees commit long term before you sell.
  • Cutting Costs: A long expenses sheet may persuade a buyer that your business isn’t worth the effort, so it’s always a good idea to trim costs before you put your business up for sale.

At RTA Business Consultants we would always suggest that you make sure your company is in the best possible shape before you put it up for sale – that way you have all the ammo you need to attract a buyer and make a profit once they sign on the dotted line.

RTA Business Lists the Top Six Business Practises

Before you even think of putting your business up for sale, you’ve first got to make sure that someone wants to buy it. That’s why it’s important to develop and follow good business practises and this week RTA Business thought we’d lend a helping hand by listing our top six!

Buyers are ultimately looking for a business that will make them more money, which means you’ve got to develop a culture that not only makes money, but that is centred towards sustaining that goal in the long term. That’s why these six business practises are vital to your eventual sale.

1)      Good People: Your business is only as good as the people who work for it. That’s why you need to make sure that you surround yourself with the most skilled people for the job. Don’t hire lesser qualified individuals to save money, it’ll do more harm than good in the long term.

2)      Protect Your Brand: You are your name; people will factor your reputation in your chosen industry into their decision not only to do business with you, but in whether your business will benefit them. Always strive to maintain your reputation as a trusted company.

3)      Chase Down Payment: This is crucial to your profit margins, always make sure you chase down late payments. Letting this issue slide not only leaves you with less money in the bank, but persuades those you trade with that you are a soft touch, which if it reached a buyers ears, could persuade them that your firm isn’t worth the hassle

4)      Do Your Market Research: This is a vital business principle; know your audience. You’re never going to be able to get them to part with their cash if you don’t know how to appeal to them. Buyers will also most likely ask you about your target audience and if they don’t have the information, it may persuade them that there isn’t a stable customer base to take advantage of.

5)      Diversify Your Service: Don’t just stick to the goods and services that have already made you a success, try out new things. Not only will this potentially lift your bottom line, it will show potential buyers the areas they can expand into and make more money.

Be Honest: It’s a basic human truth that deceit will catch up with you in the end, and it’s the same in business. Without honesty, you cannot sustain success in the long term and prove your business is viable to a potential buyer.