How to increase the value in your business
Using an analogy of buying a big-ticket item, which people are more familiar with, a car, you would check that it had an MOT, the servicing had been done and look to see how many more miles it was going to be able to do before it became costly to repair or be scrapped. Buying a business is similar, the buyer will look to see if it has audited accounts and what the future stream of profits will be. Just like buying a car, they will not want the existing owner to be part of future journeys.
When you sell a business, the buyer is looking to acquire a future stream of profits, that is a reliable forecast and is not at risk of being downgraded.
The sorts of concerns a potential buyer might have which will reduce the profit stream:
â€¢ Is the profit stream secure?
â€¢ Will the customers keep buying?
â€¢ Are suppliers going to continue to trade?
â€¢ What happens if any of the staff leave?
â€¢ How much cash does the business consume?
â€¢ How dependent is the business on the owner?
Statistically, it has been proven that businesses which sell for a better price will score highly on eight defined drivers. The owner will not look back if they address the drivers early on.
So, if you would like a no-obligation discussion about making your business more saleable, please request a free health check and find out how Business Doctors may help you to increase the value of your business. http://ow.ly/SyPn30j0MUY