HOW TO MAKE YOUR BUSINESS APPEALING

There is one piece of advice that I would give every business owner, whether they plan to sell their business or keep running it for a long time. That advice is “know how you can make your business appealing to others”.

I would give this advice because I’ve found that when people either don’t fully understand their business’ appeal or how to make it appealing, they can have a hard time in their industry, especially when they decide to sell their business or transfer the ownership of it.

The best way to discover what makes your business more appealing is by looking at your business from an outside perspective.

Business owners can commonly fall into the trap of only seeing the business from their perspective. They know what they have had to do to make the business successful over a long period of time. They’ve often developed a successful formula. But sometimes, that means they won’t consider the view of others in the business, industry or investment community. This leads to these business owners building their businesses, unaware of how others perceive their business and them. This lack of knowledge or openness to other views means that these businesses will not understand who they need to appeal to and what they might be missing out on.

We can make all the excuses we like, but for a sale to happen, an outsider (not you) has to understand and see value in your business. Some of this can be achieved through a well-run, professional sale process, which educates the potential buyers. But there are plenty of factors that will need to be embedded in the business prior to sale.

And some of you might be saying, well, we don’t need to worry about that because we always intend to keep the businesses ‘in the family’. While family succession is different, it is still a sale or transfer of ownership with its own set of circumstances and complications. Your family still has to see themselves owning and running your business. So how they see the world matters.

And the fact is, circumstances change. It doesn’t mean an owner must sell, but a well-informed owner does mean that they are better positioned to take that option if the need arises. In my view, it’s always better to be ready just in case.

These problems are prevented, or at least minimised, when business owners see their company from the perspective of others and factor that into their planning and decision-making.

One example is people development. A lot of the discussions I have with clients revolve around how they can develop and bring through people in their business. This could be staff with specialised and technical skills and qualifications. It could be senior management. Or it could be family members that will one day take over the business all going well.

Knowing the appeal of you and your business will be something that will always help you, no matter what stage you are in your business journey, if you plan to continue running your business or want to sell it.

If you plan to sell it, knowing who you appeal to and why dramatically helps you in the process of selling. This knowledge will give you an accurate idea of who your potential buyers will be and why they are attracted to your business. You can make decisions that will make your business valuable in the eyes of your potential clients, which will give you more money when you decide to sell your business.

For some owners, that means having one specific buyer in mind and developing and executing a deliberate plan to position the business to that potential buyer at some stage in the future.

Personally, I also like the idea of having backup plans just in case so that you always have another option.

In my experience, the outside perspective often reinforces good risk management and business practices. Typically these approaches also help with the resilience and profitability of your business in the meantime. A win-win situation!

Knowing your appeal will help you if you want to keep running your business. You can create strategies that will capitalise on what makes your business appealing. You can reach more clients, become more well-known in your industry, and make your business more valuable.

That’s why I will always recommend people to find what makes them appealing in the eyes of others.

Knowing what makes your business appealing will bring short-term and long-term success to both you and those that are important to you.