As a business owner, it’s understandable that you value your business higher than most buyers would. You’ve spent years of blood, sweat, and tears to get your company where it is today. You know the business inside and out. Unfortunately, not everyone thinks like the owner. Most buyers won’t understand the legacy and value like you do. One of the biggest tips that we stress with our clients as they prepare to sell, is to view their business through the eyes of a potential buyer.
It isn’t always easy to put yourself in the buyers’ shoes. You have done the work, spent the time/money, and have been fully dedicated to this company. You have a sense of pride that many might not understand, but that’s okay. When a business owner changes their perception of the business, it can help them tremendously.
If you think about it, every buyer looks for the issues. Viewing your business as a potential buyer might, a business owner may be able to identify impending issues with the sale of the business. Does your business need technological upgrades? Do you have a solid, diversified customer base? Is the business overly dependent on you (the owner)? If the buyer can’t come in smoothly and continue successful operations, then you’ll need to solidify your processes and transfer as much of your responsibilities as possible to others in your company. If there are any weaknesses within your business, they should be addressed. The seller will be looking for them.
You want to arm yourself with detailed facts about your business. A business owner should be able to answer very detailed questions with facts, and nothing but the facts. Using data as opposed to opinion and anecdote can instill confidence in buyers. They’ll feel a sense of confidence that this business is worth what you’re telling them.
Picturing your business as an outsider would, will have a positive impact on you and the company. Looking into the weaknesses of your business and addressing them before selling will not only leave you feeling confident, but the buyer, too. When you present them with facts and data it will bring a sense of relief. They’ll feel even more prepared to make their decision.
Are you ready to speak with a transition advisor? Schedule a confidential consultation today.