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.