Posted by abdul on 14 Nov 2009 at 6:06 pm | Tagged as:
Business has gotten dangerous today. The priority of every single buyer is how to avoid or lower the chance of risk. Selling your business can in fact turn out much harder than you anticipated. You need to maximise the value of your company and inspire trust in them to encourage them to buy what you’ve built. If you can help the buyer see a lower risk then you are on the road to maximising the value of your business. Excellent customer relations, processes that have been accurately documented and an impressive track record are among the several things that will help in this regard.However, there is lot you can do to maximise the value of your company. Here are some easy ways.
1) Employees : That good employees enhance the value of your business is not a seceret.Work to acquire and retain a good, stable employee base out of which you even have a few key ones.
2) Books & Records: Once your accounting is proper order, half the job of convincing your buyer that you are honest and trustworthy is achieved. Well kept records inspire instant trust and also give the buyer an extremely clear picture of your business.
3) Competition: You need to show the market and the world your USP.Why should people do business with you? Why should consumers buy your product? Acquire or develop a USP and use it to your advantage.
4) Customer diversity: It makes potential buyers a lot more comfortable to observe that you have wide customer base instead of having a few customers with major chunks of your business. The risk if much higher in the latter scenario.
5) Product diversity: Similarly, It is much better to have a range of products that cater to your consumers instead of one best selling product or even service. Having a variety spreads interest equally and reduces the risk factor by a huge percentage.
While all these factors definitely help maximise the value of your business, one thing’s for certain, the buyers only want to buy your business for its profitability. You need to focus more on that than on sales even. Utilise a carefully selected range of marketing promotions, product mix and cost controls etc. To improve your profitability.