Let's draw a picture. Every day in the United States, a whopping 12,000 people turn 65, hang up their hats and head into retirement. Of these, approximately 20% own small and medium-sized enterprises. If you do the math, that means nearly 2,400 companies need new leaders every day.
This trend changes scale, creating a buyer's market and meaning fewer companies are sold.
So what do you think? It's time for you to step up. How can you ensure your business sells for its true value when buyers have free choice?
Let's take a closer look at four strategies to help you sell in a buyer's market.
1. Financial Fitness: Adjust your numbers
Let's start by talking about money. You want your business's finances to be as sound as a fiddle.
- clean those books
- Reduce unnecessary costs
- Make it look like your income is going back to the gym.
A good financial profile means buyers are likely to pay top dollar.
real talk: A technology client I worked with tripled their business valuation after we helped them double their recurring revenue streams.
2. Build a strong management system
Once you have your finances in order, it's time to review your operations. Efficient and streamlined operations are key selling points.
- Review and optimize your business processes.
- Make sure your technology and systems are up to date.
- Build a strong team that can operate without day-to-day input.
A business that runs like a well-oiled machine is not only more profitable, but also more attractive to buyers.
Kind advice from the field: Meet Jocelyn and Shane Sams, the dynamic duo behind Elementary School Librarianship. In 2012, we began selling extremely useful lesson plans for school librarians. After five years, they'll hand over the keys to the business for his $1 million. how did they do it? “Recurring revenue, systems and automation are paramount in valuation, so hire, systemize and automate,” says Shane.
3. Showcase the uniqueness of your business
Every business has something special. Identify your company's characteristics. These include exclusive products, strong brands, and a loyal customer base. This is your chance to make your business attractive to potential buyers.
An example of unique splendor: Museum Hack founder Nick Gray hired stand-up comedians and actors. That's why no museum tour is the same, and each one will be fun and interesting. The company was sold to management for “millions of dollars,” Gray said.
4. Timing is everything: Make the right choices
Let's talk strategy. Selling your business isn't just about what you sell. That's always the case. Always keep an eye on market trends and enter at the right time.
Insight: Rebecca Bastian co-founded OwnTrail in March 2020 to create a safe space for more than 6,700 people to participate authentically and celebrate professional and personal milestones. We shared it so we could help each other. Three years later, she ran out of money and was forced to take a different path. Although Bastian wasn't ready to sell, “the reality is that market conditions forced us to exit sooner than we would have liked.” Bastian was determined to keep OwnTrail alive. , sold to career development platform Teal for an undisclosed amount.
It's your turn
Now, let's move on to a personal story.
- Think about what makes your business uniquely great.
- Write down three things that stand out to you.
- How can your business use them to attract the right buyers?
By focusing on what sets your business apart, you're not just preparing for a sale. You are preparing for a major exit in a buyer's market.
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