Start With the End in Mind!
Start With the End in Mind!
That's what I like to tell prospective buyers whenever they are looking at my listings. What will you one day sell the business for? Will other buyers see what you see in the value of this business or what can you change to make sure the business sells well after you're finished with it?
Is the industry that you are buying in going to have lots of buyers in 5- or 10-years’ time or whenever you are ready to sell?
That's the key question when it comes to your next big investment.
What makes a business popular to buyers:
Clean reports: Are you the one to produce a good set of annual reports year on year? Buyers often need finance. Their finance provider will need to see good reports to approve the lending for the purchase.
Growth potential: Will the business keep moving upwards? Is the product on an upwards trend? Are you the one with the marketing and management skills to help the business scale?
Specialty: What types of skills are required to run the business? The less specialised, the more buyers there are!
Margins: Are the products or services this business is selling producing a good margin to make this business easier to produce a profit?
Low maintenance: Can this business be run with a full-time or part-time manager? Are the overheads at a comfortable point? How much input is required by the owner to maintain a good profit? Investors love low maintenance profitable businesses!
Appeals to everybody: The more it appeals to everybody - the profit, the product, the opportunity, the lifestyle - the faster it will sell.
Call William on 0474 464 763 to chat about which businesses you should buy, or what it takes to sell!
Tags: buying business owner small business
About the author
William Dang
William Dang has been in small business for all of his working life and is now passionate about helping business owners exit and realise the value of ...
