Successfully Selling your Business...

As a long established and successful Business Brokerage we at Biz2Sell Business Brokers have come across many sellable SMB businesses, but even more that are not sellable.

Here are some insights…

Most SMB Business owners wake up 1 day and decide that they want to sell their business.

They have not planned properly for their exit.

Many also have unrealistic expectations of the Selling price they want to achieve.

• ?“ I have put my blood, sweat and tears into building this business for the last 20 years!” Reality - A buyer is not interested. A buyer is only interested in the net profits! A decent R.O.I.
• ?“ I paid R1 million for the business 2 years ago, I just want my money back!” Reality - A buyer is not interested in what you paid or invested into the business. A buyer is only interested in the net profits. A decent R.O.I.
• ?“ I know the business isn’t making much profit now, but it has huge potential!” Reality - “Well why didn’t you capitalize on the huge potential?” A buyer is only interested in the net profits and his R.O.I. He will not pay you for potential!
• ?“ The huge advantage of my business is that I have low rent and no staff to pay!” Reality - Ok. So, the buyer is basically buying himself a job where the business is totally dependent on him opening and closing daily and doing all the work!
• ?“ I don’t have updated Financials or Management accounts, but I can show the prospective buyer my P.O.S. printouts, my Bank statements, my black book with daily turnovers etc…” Reality- The 1st thing a buyer wants to see is proper records. This is evidence that it is a well-managed and organized business! ?
• ?“ I want R3 million for my business!” Reality - Based on your profits, the current fair market value is R1,5m. Unless you are prepared to advertise it at the current market value it will not sell!

?These are some of the common stories we hear from Business Sellers.

?Fact – More than 50% of small-medium size businesses put on the market in South Africa do not sell! ??

?10 Lessons from the book "BUILT TO SELL"

?Creating a Business That Can Thrive Without You"

?1. The more your company relies on your personal involvement, the less valuable it becomes to someone else.

2. Building a business that can thrive without you is the ultimate test of entrepreneurship.

3. The best way to make your business more valuable is to make it less dependent on you.

4. The key to creating a sellable business is to build a company that gets customers, instead of relying on you to chase after them.

5. Standardize everything. A business that isn't dependent on any one person, including the owner, is the key to a saleable company.

6. The secret to cashing out through the sale of your business lies in knowing what buyers value.

7. Creating a sellable business means continually moving it toward a product or service that fulfills a defined need and has a predictable sales cycle.

8. Invest in systems and procedures to make your business as turnkey as possible.

9. The goal is to build a sellable company where someone else runs the day-to-day operations.

10. The process starts with the decision to turn your business into something bigger than yourself.

?If you are looking to sell your Business in the future, we strongly advise proper planning for your Exit.

Don’t just wake up 1 morning and decide to call a Broker to sell your Business.

?For confidential advice and assistance with regards to selling your Business, email me – [email protected]

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For more Business tips and articles relating to Selling your Business or Buying a Business Follow our page - https://www.dhirubhai.net/company/biz2sell-business-brokers/