What Do Business Buyers Expect?
Business Buyers are a fussy lot; they have huge expectations and are often spoilt for choice. They get to choose from retail, wholesale, trade based, food related, health & fitness, service or tourism related businesses. Or they may be tempted to buy a franchise or home based business, or an online, managed or preferably a five day a week opportunity.
When investing in businesses, buyers are generally well researched; they do not want to make a mistake and will employ professional advisors to ensure they don’t. So, how do you meet their expectations and ensure that you receive the rewards that they rightly deserve?
The key to a fantastic result when selling is to understand what business buyers are looking for. Your business must stand out and be attractive enough for buyers to proceed. This takes time, clever marketing and careful planning, however, by fine tuning your business the chances are you will achieve your goals.
It is unlikely the buyer will come from within your industry, so systemise and structure the business to be more attractive. A documented procedures manual covering all operations can prove invaluable. Historic Sales records and Client Data Base are key points in adding value and Maintainable Future Earnings. Appointing key staff can reduce the reliance of the buyer and increase the chances of a seamless transition after settlement. Ensure your financials are perfect and reduce excess stock levels where possible.
Business Buyers do not like premises that require refurbishments, relocation, equipment upgrades and lease/franchise renegotiations. They don’t have the confidence or desire to do this, so it’s imperative to take care of these issues, prior to going to the market.
Most of us that live in Queensland are here for the amazing lifestyle on offer, so the businesses that offer owners flexibility and the opportunity to spend time away with family and friends will always in demand. Keep this in mind when you are looking at exiting and implement strategies to ensure your business can offer this.
Lastly, choose an industry experienced Business Broker with a clever marketing strategy in place and a good understanding of buyer’s expectations, you will be well rewarded when it comes time to sell.