Selling your business in the next few years? If you’re thinking about a future sale, there are three key things you need to focus on right now to get the best value and make your business more appealing to potential buyers.
1. Address the Risks
First and foremost, buyers care about risk, not profit.
When potential investors or buyers look at your business, they’re not just buying into your profits, they’re buying into your risk. They want to know that the business is low-risk, whether that risk is internal or external.
Your job is to minimise those risks.
If you know there are potential issues (whether it’s a supplier problem, legal risk, or any operational bottlenecks), fix them now. Buyers don’t want to inherit a problem, they want something that runs smoothly, efficiently, and predictably.
So, tackle the potential risks head-on. Have solutions in place to show that when they buy, they’re stepping into a secure, stable business. No surprises.
2. Build Standard Operating Procedures (SOPs)
Next up, let’s talk about standard operating procedures (SOPs).
When a buyer comes in, they want to know if your business can run without you. If you’re the “key person” running everything, that’s a huge red flag.
The more your business can function without you, the more valuable it becomes.
Create clear processes for everything. The more streamlined your operations are, the more attractive your business becomes to a buyer. When you can show that the business doesn’t rely on your daily involvement, you’ve built something that’s scalable and transferable, and buyers will pay more for that.
3. Get a Business Valuation
And finally, if you don’t have a business valuation, how do you even know what your business is worth?
Without understanding the value of your business, how can you plan for growth or figure out what areas need attention? You can’t.
A business valuation is essential. It shows you exactly what drives your value and where you can improve. If you don’t have one, you’re essentially flying blind.
And here’s the thing—your valuation doesn’t have to be where you want it to be right now. But knowing where you stand means you can make the changes needed to increase that number. Whether it’s increasing your margins, improving your customer retention, or tightening your processes, a valuation gives you a clear target to aim for.
Ready to Sell? Let’s Get Your Business in Shape
If you’re planning to sell your business and want to ensure you get top dollar, start with these three steps:
Minimise risks and have solutions ready.
Build and document your SOPs to make the business run without you.
Get a professional business valuation and work towards improving it.
If you need help with any of these areas, reach out today.
Let’s talk about how we can increase the value of your business and help you plan for a profitable exit.
