It’s one thing to run a small business yourself for the love of it and earn whatever profits can be gained there. However, if you have plans to one day sell your small business and let it become something bigger, you have to start thinking about it in a different way. Much like in the conception of the business idea you had to think of what would make your business appeal to your customers, now you have to consider what would make your business appeal to other businesses or potential buyers. It can be daunting, especially when it means letting go of something that you’ve held so close since the beginning, but there are a few key things that those looking to buy a business want to see.
Current Financial Success
Your business might not need to be booming, but it should at least be able to stand on its own and then some if it’s going to attract a larger party. Much of business is about taking risks, but these risks are often calculated risks based on the promise of reward. Are you reaching your target audience successfully? Are you making a good profit every month? It might seem a little ironic, but from a business standpoint, it’s practical: the better your business is doing for itself, the more likely someone will be to buy it.
But it’s not just about how your business is doing now. Potential buyers need to know that your business has the potential to grow in the future. If it seems as though your business is successful, but has peaked in its success, then potential buyers won’t have anything to work with in improving it. Don’t just assume that whoever buys your business will have the know-how to make it something more. You need to be able to make buyers confident that your business is just getting started.
One thing that small businesses too often prioritize is big name clients and customers. It only makes sense because often those big name clients are the lifeblood of your business, both in terms of profit and marketing. However, if you want buyers to see your business with the potential to be something more, a few important customers aren’t going to cut it. Your business needs to be able to appeal to a wide range of people — and therefore a wider profit margin.
A Strong Team
It’s nice to have a team that’s loyal to you, but if your plan is to sell your business, that’s not really the ideal. Your business needs to be able to function even if you’re no longer at the head of it. How do you ensure that? By empowering your team to be self-reliant. Make sure that they’re trained to take care of various functions and prepped to be adaptable to change. The ideal here is that when someone else buys your business, your team can keep performing at the same level as if nothing has changed.
You might be fond of your business, but how special are the products and services it offers, really? There are countless virtual assistants, online shops, or marketing services out there. That’s not to say that a marketing business can’t sell, but what makes your marketing business stand out? Why should someone buy your business over any of your competitors? This is something that goes back to branding and marketing your business to customers. You have to find the thing that makes your business different — and therefore valuable.
We know that the process of figuring out what makes your business sellable can be overwhelming, which is why TCA Darwin offers small business improvement services as well as remote consulting. We can help you make your small business the best it can be, and hopefully one day, it will appeal to someone else, as well. Contact us today for more information.