Is your business ready to sell?

Just as with selling a house you want to make sure that every aspect of your business is appealing from the indoor and outdoor aesthetics to its location. The things you first see when looking at your business are exactly what potential buyers will see and it is these things that could make or break the deal. If you feel your business could benefit from some improvements but don’t know where to start, here we have 3 simple steps to help you on your way.

Doing HR properly

As your business grows you will inevitably take on more staff but as you do it is important to make sure you adapt. Having the adequate HR infrastructure in place within your business is extremely important but even more so when you are trying to sell. As a smaller business you may feel that your slightly more informal management approach works best but you may find this to be a liability when looking for a buyer.

Acquirers tend to have existing businesses, so it might be worth looking into what human resource polices they have it place to ensure yours align as much as possible. A lot of the time these policies consist of key written documents such as;

  • A policy clarifying zero tolerance towards harassment and discrimination
  • A written contract confirming the employment of each staff member
  • A written description of your workplace bonus system
  • Written policies for any employee expenses e.g. Travel, food, benefits

File all documents

Collating all the important documents and information regarding the day to day running of your business is a sure fire way to impress any potential buyer. By having all of your business procedures, financial information and other intellectual capital in one place you are likely to attract more interest.

This file containing all of your information should include the following;

  • How the business is opened and closed
  • Instructions and forms for tasks carried out within the day to day of the business
  • Templates for all key documents i.e. invoices
  • All emergency numbers for your businesses service providers
  • Customer billing procedures
  • Marketing tools and your current market position

Documentation of business assets

Every business has unique selling points that buyers should be made aware of. Not only does the documentation of this make you seem more professional, it also makes your business more attractive. These assets may include the following;

  • Your formula to acquire new customers
  • Any proprietary research you’ve conducted
  • Any research you’ve done into evaluating potential new business locations
  • How you as an owner personally ensure satisfied customers