When marketing a business, keep in mind that buyers have certain expectations when exploring their investment options. Attracting buyers requires effort, but the results are worth it. Here are a few ways business owners can increase the number of interested buyers.
Make the Property More Attractive
First impressions are always important, and that holds true when a potential buyer is looking for an investment opportunity. A clean, attractive property draws more attention than an unkempt one. Improving how a property looks starts with the basics. The business brokers from CGK will recommend removing all debris from the area and arranging any equipment or supplies stored outside in an orderly fashion. Freshen the landscaping and cut any weeds or brush around the perimeter. If buildings or signs need paint, take care of that issue before attempting to sell the business. Even small details make a big difference.
Establish a Realistic Market Value
Most potential business buyers already have a rough idea of what specific types of businesses are worth. They’ve done their homework, and sellers must do theirs, too. Work with a broker and other marketing experts to determine the value of the business. This process should start well before a business is placed on the market. Sellers can often increase the value of a business by carefully planning their exit strategy well before attempting to sell it. For example, making prudent investments in marketing or updating the business often yield high returns on investment.
Have Financial Statements Prepared
Potential buyers always expect to see at least three years of clear and concise financial records. In most cases, working closely with financial experts is recommended, as errors in the financial statements could prove detrimental to a sale. While a profitable track record is always preferred, some buyers focus on potential rather than earnings. However, every potential buyer will insist on accurate records, so have them ready.
Highlight the Future
Buyers are betting on the future, so help them hedge those bets. Develop a plan outlining your vision of the future for the business. The plan could include expansion ideas, new product development, or marketing plans. While the buyer may not adopt all the ideas, a comprehensive plan for the future may suggest ideas the buyer hadn’t thought of and lead them to make an offer.
Have a Solid Team in Place
While some buyers will have their own management team in place, others will rely on the existing team. Highlight the expertise of staff members and how they can contribute in the future. At the same time, discuss how much information to share with the team about a pending sale. Every situation will differ to some degree, so take advantage of your business broker’s experience when making that decision.
Start Planning Well Before It’s Time to Sell
Attracting potential buyers for a business is rarely easy, and marketing experts always recommend planning for the sale as early as possible. Doing so makes it easier to put all the pieces in place that will lead to a successful sale. That generally means working with a team of experts to ensure the process flows smoothly. Start by finding a business broker you trust, but also have financial and legal experts on hand to provide advice throughout the sales process. When the details are all in place, you’ll have more potential buyers for your business.