The Details Can Help Get a Business Sold
California Association of Business Brokers says financials aren’t the only thing to consider
(Sacramento, CA) Selling a business can be an overwhelming task for a business owner, especially in today’s economy. However, the California Association of Business Brokers, a non-profit trade organization, says that selling a business – and getting a reasonable price for it – can happen. It’s all in the details.
According to the CABB Outlook Survey for 2010, members stated that although the economy is still unpredictable, they are cautiously optimistic about the future of the business brokerage industry over the next year, saying they predict the industry will remain the same or improve slightly.
The annual survey sited the top three things a business owner should do to make their business attractive to buyers: increase sales and have all financial records in order, consider seller financing and be able to show the growth potential of the business. “While these factors are indeed key, there are other details business owners should consider that will help them be competitive,” stated Ron Hottes, president of CABB and of several Business Team Business Brokerages throughout California.
The survey results sited several other important, but maybe not so thought of, details:
Maintain a strong workforce. A buyer wants to know that the success of the business doesn’t rely only on the owner. Having competent, dedicated and trustworthy employees shows buyers that the service or product that is sold is where the success of the business is, not with the owner.
Document processes. Financial books are not the only thing that should be in order. Make sure the businesses processes such as job descriptions, the employee handbook, inventory, vendor and client lists, insurance policies, and daily business records and procedures are well organized and documented as well.
Clean, refresh and organize. A buyer looks for a financially sound business, but curb appeal matters as well. A new business owner doesn’t want to inherit someone else’s mess. Clean out and get rid of unused supplies and update the business with new paint and carpet to give the business a fresh look.
“On their own, these things probably won’t make or break a sale,” Hottes stated. “But when you combine these items with having financials ready, the business showing a profit, and utilizing the skills of an experienced certified business broker, it could give a business owner the edge needed to get the business sold.”
Source: The California Association of Business Brokers (CABB)
