Your time as a business owner can end in a variety of ways. You could retire and pass the business on to someone else such as your son or daughter. This is an incredible legacy to pass on to someone. Or, your business could collapse and falter leaving you with no choice but to cut your losses. The final possibility would be a successful sale that earns you one final, massive lump sum of money. That’s an exciting prospect for a lot of business owners because if you can manage a successful sale like this, then you can retire in luxury.
Ah, but how do you make sure that your business sells for a high price when you are ready to let it go. Believe it or not, this starts from the very first time you open the doors of your company to the public. If you don’t make the right choices from day one, it’s going to be incredibly difficult to course-correct later on. Ultimately, you should always be thinking in terms of that future sale. So, let’s take a look at some of the key variables that are going to play a part here.
Lay A Strong Foundation
First, you need to make sure that you are laying down the right foundation for your business to be both successful as well as popular. There are lots of factors that are determined in the early days which will shape the future of your business. For instance, you might want to start by thinking about your business name. This is usually the first aspect of your business that you need to consider which relates to shaping your business brand.
A name is valuable because it’s how people are going to know your business. Some successful companies and brands owe a great deal of their success to the founder choosing the right name from day one. But this isn’t the only element of a strong foundation that you should keep in mind. You might also want to think about your business website. Now, you probably think that getting your website right from day one doesn’t matter. After all, if there are any issues, you can just play around and change them.
There are two points to consider here. First, you’ll only be able to adapt and evolve your site if it’s been built in a way that allows you to do this. Second and perhaps more importantly, you’ll only get one chance to make the right first impression of your business. If you falter here, then you’re going to be facing an uphill battle getting it to a point where it is going to reach a high price on the market in the future.
Put The Right Team In Place
Next, you should consider your business team. Your time is, in essence, nothing short of the life force of your company. If you don’t have the right team in place, then your company will quickly fall behind the competition. You need to make sure that you are adding experts and innovators to your business. These people must have the power and knowledge to push your company forward in exciting new directions. So, how do you get the right team?
Well, one way that you can do this is by using a recruitment agency. The best recruitment agencies essentially act as gatekeepers to the job market. They have huge power in terms of representing the candidates with high levels of knowledge and experience who you should absolutely hire.
As well as this, you should certainly conduct a thorough search. In doing so, you can make sure that a vital candidate who could take your business in exciting new directions is not missed.
Of course, it’s not just about hiring the right people. You need to make sure that they want to stay with your company. This is always going to be easier said than done. Churn can be a massive problem for businesses. It’s often one of the most significant costs which we’ll move on to next. To reduce churn, you should think about how to make your business more desirable. Although, don’t hold onto team members that aren’t pulling their weight. If they are holding your company back, then they will always need to be replaced in the long term.
Manage Costs Effectively
Once you have the right team in place, you should then turn your focus to costs and concerns regarding spending. If you want your business to be seen as valuable to a potential buyer then it needs to be efficient. If your business is bleeding then it doesn’t matter what broker you choose, you’ll never find a buyer. One of the best ways that you can manage costs is by making sure that you do have the right management systems in place. For instance, you can think about choosing the best fleet card if you are running a fleet of vehicles as part of your company model. In doing so, you can easily keep a handle on things like fuel costs.
Currently, one of the biggest threats to your costs is likely going to be fuel. Due to rising fuel prices, it’s going to be hard for businesses to stay in the game. But we’re not just talking about cars. You need to think about the cost to power your business building too. This is why it may not be desirable any longer to run your business from a huge office. If you can manage a successful company from the comfort of your home you should.
Don’t Damage Your Reputation
When it’s time to sell your business, you need to make sure that your reputation is squeaky clean. If there are any blotches on your history books, then you will always struggle to get the attention that you want from buyers. Nobody wants to invest in damaged goods. That’s why you should think about using a brand management service. They will work to quickly put out the fires that might threaten to engulf your business brand and take your entire company down with it.
Another way that you can keep your reputation on track would be by managing quality standards. You must make sure that you have quality checks in place throughout your business model. If you have issues with quality, this is going to lead to some difficult reviews for your business that you might not be able to handle. Don’t forget, these days 80% of customers will check reviews before they buy a product or service. So, it’s always going to be in your best interest in the long and short term to handle this problem the right way. Often, this will mean responding to negative reviews directly, but your brand manager will put a game plan in place for you here.
Keep Your Books In Order
Finally, you need to make sure that you are keeping the books in order. Any issues here will make your company look shady and potential buyers won’t want to inherit this type of problem. That’s why you should always use an accounting service when running your company.
We hope this helps you understand some of the key considerations that you should think about when you are trying to ensure that your business is ready for the final sale. If you take our advice here, you will be able to guarantee that your business does sell for the price you always hoped for. You won’t face one final loss. Instead, you’ll win one last success story before you part ways with your startup for good.