In commercial business sales Santa Ysabel, there are a couple of things business buyers focus on to determine whether a business is a great investment. As you get ready to sell your business, it is always good to keep these value drivers in mind in order to influence buyers the right way.
When buying a business, buyers focus on the financial records. The problem with this is financial records can be incomplete or inaccurate. At times, the financials are created in a way that helps minimize taxes. That is why buyers tend to look beyond the financials when deciding on whether to buy a business or not. As you get ready for commercial business sales Santa Ysabel, it is good to know the key value drivers.
Steady income for several years
Buyers are more interested in businesses that have been in operation for several years. This is because such businesses have proven to have a working business model and it is easy to do a background check on them. In most cases, buyers will request for the financial records of a business that run back at least three years. Their focus here is to see if the business has had steady income or not. If the income of your business has not been steady, now might not be the best time for you to sell it. If you can wait, hold back the sale. If you can’t, your business broker in San Diego will advise on the best course of action.
Potential to grow and expand
Buyers are not interested in businesses that cannot grow. If a business has no potential to grow, it has a potential to fail. Buyers focus 30 percent on what the business owner has done and 70 percent on what they can do with a business. If the business owner is the backbone of the business, it will be hard to scale the business.
To prove to buyers that your business has potential to grow and expand, start by removing yourself from operations. Your business should be able to thrive without you. You will also need to build a strong company brand, have a recurring revenue model, improve your market position, bring in quality employees and build a strong and loyal customer base.
Selling a business is usually quite emotional for most business owners. That is why you must always get the right help. An experienced business broker in San Diego will make sure that your business is ready for commercial business sales Santa Ysabel and everything has been done to help you sell fast and for the best price.