Come “Sell” Away: How to Sell Your Business For a Higher Price Tag

When it comes to selling your business, it’s important that you sell it for a price that’s suitable for you and that, as the seller, the deal happens according to your terms. Buyers will naturally try to get you to lower your price on the sale of your business based on a number of facts, such as current sales volume, customer retention, popularity, brand awareness and current net income. Buyers may use these facts to justify their offer versus your asking price. The business coaches at FocalPoint have come up with six ways on how you can make your business more appealing to buyers, so you can get the price you want when you’re ready to sell it. 

Get the Timing Right
Know when you’re going to sell your business from day one, and plan ahead for an exit strategy in your business plan. Many business owners make the mistake of waiting until their business is not doing well, which may be due to a number of variables such as the economy. If you’re going to sell, make sure to do it when your business is in the peak of its “powers”. Do not wait to sell when your business starts to take a dip—this will result in you having to take a discounted selling price from a prospective buyer.

Get Your Books in Order
Make sure you keep records of everything! This is crucial when it comes time to sell the business. Many business owners “live” out of their business to save money on their taxes, meaning business owners run personal expenses through the company, and these expenses must be recorded and added to the bottom line. It’s imperative to know your numbers down to the “T”, so when it comes time to sell, you can back up your asking price with facts and figures.

Work Your Way Up the Five-Rung Branding Ladder
This refers to how well your brand is recognized in the public eye. The five steps are as follows:

  • Brand Absence – Consumers don’t know about your product or only use it out of convenience.
  • Brand Awareness – Consumers are familiar with your brand.
  • Brand Preference – Consumers prefer your company’s brand over another brand.
  • Brand Insistence – Consumers are so loyal to your brand that they refuse to use another brand.
  • Brand Advocacy – Consumers who are such big fans that they recommend your brand to other people.

Try to move up this metaphorical ladder to increase the value of your business. To move up the ladder, make sure your company partakes in community service events and that you have a strong, creative and innovative marketing team.

Know What Makes Your Business Valuable
A strong management team, a healthy customer base and multiple sources of income are all positive indicators that a business is a good one to buy. Buyers will be more inclined to offer a higher price if these assets are present within a business because it proves the business is sustainable and a transfer of ownership won’t disrupt the system.

Keep It Quiet
The worst way to ruin a business deal is to begin to tell people, including your customers, that you’re going to be selling the business. People aren’t always open to change, and if they hear a change of ownership is imminent, they may not continue to support the brand—this will lower your healthy customer base, as well as the value of your business.

Hire a Good Business Broker
Hire someone who can keep the dealings with potential buyers private and quiet while still being able to negotiate effectively. A good business broker will highlight the many assets that increase the value of your business and ultimately secure the highest selling price from the highest bidder. 

At FocalPoint, we can help with the tedious, difficult and tricky process of building a successful business and what goes into it. We’ve helped countless business owners take their business to the next level while increasing key assets of their business—you can be next! Give us a call at (610) 768-7774 today or visit our website here.