Commercial business sales Shelter Valley are not as straightforward as most people assume they are. There is a lot of work that has to be done. Needless to say, balancing between selling your business and running it can be hard. That is why it is always a great idea to involve a business broker.
To increase chances of winning the trust of a buyer, you need to prove to them your business is valuable. The best way of doing this is knowing what buyers look for when determining if a business is right for them or not. Here are the key areas buyers focus on.
Unless they are interested in the location or assets of your business, buyers will pay attention to the financial performance of a business. In commercial business sales Shelter Valley, you have to be ready to show buyers how profitable your business is. You do so by providing financial records that go back at least three years. These records should include profit & loss, revenue and cash flow statements. Being able to show a healthy multi-year trend of increasing revenue and a forecast for continued revenue growth will further convince buyers to buy your business. Your business broker can help with this.
Position in the Market
Buyers are more interested in businesses that offer products or services that are unique. If your business has products that are different from those offered by your competitors, buyers will be more inclined to acquire it. This is because having unique products means your business is not easy to be replaced.
The listed price matters. Smart buyers will want proof that validates the set selling price. Pricing should be backed by facts. If you don’t have a business valuation report from a reputable broker or appraiser, buyers will doubt your set selling price.
Nature of Employees
How competent are your employees? Smart buyers will focus on businesses that have highly skilled, experienced and well paid employees. Such employees will be able to run the business in the right direction and will have a lower chance of quitting.
Last but not least, buyers will want to look at how established your customer base is. If more than 40% of your sales are from a single client, your business will be at a higher risk of failing if that buyer leaves. Taking time to diversify your customer base will increase chances of selling your business fast and for the best price.
There are so many things buyers look for in commercial business sales Shelter Valley. The best thing you can do is make sure you enlist the help of a competent business broker to guide you through.