As always any business owner and business seller should always take steps to improve his/her bottom line and stay ahead of the competition.
• VALUATIONS: Having an updated valuation is always a good idea. Firstly, it keeps the Business Owner updated and informed on the state of the business. Secondly, for the potential business Buyer, a business with Valuation will always be more attractive than a business without one. Thirdly when you are ready to sell your business, the Business Broker will have all the information and answers with the Valuation Report and thus market the business to get the maximum value for you. Even if you are not looking to sell your business in the near future, having a Valuation Report is an eye opener and a good habit. It keeps the Owner disciplined and informed of the strengths and weaknesses of the business.
On that note, if your Annual Valuation is coming up and if you can anticipate when your annual P&L Reports and Balance Sheet will be complete, please email us right away to block your time to get your addendum.
• GET YOUR BUSINESS S.B.A. LOAN READY: In this economy most businesses that sell at full price, sell with some kind of financing. Seller Financing should be the last resort, but in many instances, its the only resort. However, if your Tax Returns match your Profit and Loss reports, and the business is healthy, a Buyer will we able to get a conventional or Small Business Loan; thus making your business more attractive and marketable.
• WHY DO SIMILAR BUSINESSES SELL FOR MORE THAN OTHERS?: There are many factors (some hidden), and in the next few issues we will discuss each to them individually, but most of the factors will show up in the 'bottom line' of the business. Therefore, two similar businesses with the same revenue could have a great variance in their worth.
• KEEPING YOUR BUSINESS READY TO GO: Past performance is no guarantee for future rewards. Therefore, its vital to keep the essential things in order....like a favorable long term lease, Employee Training programs and staying informed of the industry trends for your industry.
• GOOD BUSINESSES ARE IN HIGH DEMAND: Every business sells eventually, but good businesses sell fast and for a higher multiple. As the Austin Metro Area gets more people relocating here, the need for service and retail business is increasing and so is the demand for quality businesses that the new residents want to buy. If your business is in order and doing good, the best time to sell is when there is a greater demand.