While certain tangible elements like financial analysis, return on investment, market conditions, industry trends, etc. are important to any buyer, often times, intangible elements separate your business from the rest. Many times this comes down to nothing more than sales savvy when positioning your business for sale… a trait you undoubtedly gained by being a business owner.
What is “your story”?
Think back to when you began your business. Why did you get in? What are the obstacles that you had to overcome? How did your success position you for the future? What are your relations with employees, vendors, suppliers? Understanding where you came from and how your decision and endurance contributed to your success speaks to the culture of your organization…an aspect important to any purchaser.
What is the potential?
“Your story” supported by tangible components goes a long way in selling your business. The next component lies in the potential for growth. Many buyers are interested in understanding how the purchase of your business will contribute to their interest and provide opportunity for growth. If resources were unlimited, what could you do to reach the next level of success? While we all understand that rarely do we have unlimited resources, this is a good hypothetical question to ask when building your sales position to a seller. Perhaps adding a sales manager or e-commerce is something that can catapult your business but could not be supported at this time. Don’t forget, that the purchaser o your business is entering with the same excitement, hope and desire that you did when you entered.
Whether using a business broker or not, formulating “your story” and sharing your vision for future potential can make the difference in attracting qualified buyers to your business.
By Keith Dyer, Partner