How to Prime Your Business for the Perfect Buyer from a Multi-Business Owner Who’s Been There

Let’s talk about something we don’t discuss nearly enough… selling your business.

Whether it’s your first business or perhaps you have multiple businesses, selling a business can feel like letting go of a piece of your soul. It’s not unusual to feel anxious or unsure about venturing into a sale process but when done right, it can set you up for your next adventure or even, financial freedom.  I’ve bought, sold, and managed multiple businesses and learnt a lot along the way but my biggest headline on selling a business is always: a business that’s easy to sell is a business that’s running like a well-oiled machine so here’s how to get your business buyer-ready, or primed for the next generation, while keeping it thriving.  

Know Your Numbers Inside and Out; you need to know your financials like you know your coffee order. That means ensuring you have finalised, clear and organised Financial Accounts, Tax Returns and Cashflow Reports for the past 3-5 years – yes, even for Covid years. You also need to be ready for questioning. You wouldn’t buy a car without asking some questions so be ready to explain any dips or spikes in revenue. Remember, transparency builds trust, and you will need trust throughout this process.

Maximise Recurring Income: You want to identify, maximise and grow recurring revenue streams – buyers love these. Any form of consistent and almost ‘sure’ income is a huge win for buyers.

Get Your Business as Self-Sustaining As Possible: No buyer wants to inherit a business that depends entirely on the seller. I always say, I’m buying a business, not a job. Focus on getting your business operating smoothly without you. To get your business self-sustaining, focus on:-

-              Getting a Staff Handbook and Standards Operating Procedures (SOPs) in place for every process in your business. There are plenty of AI tools now that can assist with this and take the time-consuming aspect out of this process. Over the next two weeks, write a list of everything you do for your business. Every. Last. Thing. No matter how small. Then spend the next 2 weeks training your team to take over all of those aspects that are outside of an owner’s role. You want to ensure your business can operate without you just as it does with you.

-              I only ever consider businesses for sale in which the team are willing to stay on. Empower your employees to take ownership of their roles and responsibilities.

-              Automate everything you can. Invest in the software that can send review prompts after a customer purchases a product or experiences a service, introduce financial software that your team can directly upload their receipts to your accounting software. Head over to the @fiainvestments Instagram page and download our AI tool recommendations directly from our bio!

Get Your Branding TIGHT! Just like staging your home for selling, you want to stage your business. Make sure your branding is on point. What are your brand values, does your website and social media reflect this? Is your branding consistent? Can you hand over a clear and concise marketing document to the buyer? Buyers want to acquire a business that feels polished rather than a work in progress.

Diversify Your Client Base: One of the biggest red flags for buyers is a business that relies too heavily on one or two clients. If losing one big customer could sink your business, it’s time to diversify. Expand your client base and show buyers that your revenue is steady and reliable.  

Know Your Why: Any buyer will ask you ‘why you are selling?’ We are naturally cautious. Your reason doesn’t have to be dramatic. Maybe you’re ready for a new challenge, planning to retire, or just want more time with your family. Whatever your reason, show buyers that your business is in great shape – the best time to sell your business is when it is thriving, not surviving.

Value Your Business Right: There are an abundance of ways to value your business. In fact, inside our Small Business Fanatics app we have a webinar all about how to value your business. Regardless of how you value it, make sure to set a realistic price. Go too high, and you’ll scare off buyers. Go too low, and you’ll shortchange yourself. Work with a professional to determine a fair price based on your revenue, assets and the current market.Selling a business is like handing off your baby to someone else—it’s emotional, exciting, and nerve-wracking all at once but if you take the time to prime your business for sale, you’ll attract the right buyer and get the payoff you deserve.  So, whether you’re planning to sell in two years or twenty, start thinking like a buyer now. The more prepared you are, the easier (and more profitable) the process will be.  Here’s to building businesses—and selling them like a boss!