Many business owners live in hope, that at some stage, someone will come to them and offer to buy them out. After all, this is the reward for all the hard work, stress and financial risk.
Setting your business up so that someone will want to buy it involves looking at it from the perspective of a prospective buyer from day one. So what are they looking for?
The obvious answer is that they want to make a return on the money they plan to invest in your business. But there are many other factors to consider.
Whatever their motivation, you can make your business more attractive by planning ahead:
Show the solid foundation. This can be achieved by having a business plan and a marketing plan. It shows you are building your business in a strategic way. Testimonials are also a plus as they show you are good at what you do. Prepare simple graphs that show how the business has grown in the past and make sure they show increases.
Have a clean business slate. Make sure that your tax and business records are up to date and accurate, and that any issues with customers or suppliers have been resolved. Ensure that legal documents are filed and that things like leases are all in order.
Show the potential of the business. This is the key for prospective business owners. Is there potential for even more growth? You can answer this with industry trends, local business activity for your region, the degree of customer loyalty, and continued growth in your turnover.