Why you should always be selling your business

Why you should always be selling your business

When you’re selling an item you always try to make it look good, correct? Think about it for a minute, if you are selling a car you’ll wash and vacuum it before letting people bring it for a test drive. The same goes for selling a house, to get the best possible price you’ll paint and cover up any obvious cosmetic work you’ve been meaning to do for years! This way, whatever you’re selling looks good to potential buyers and you’ll get the best price. Now, why don’t we run our business this way? Imagine if you had potentials buyers coming to view your business next week. What’s the one thing you’d change or improve rather than putting up with mediocracy. It will also help you to declutter and improve you’re business processes without them revolving around you – The owner

Cosmetics: How does your business look to potential buyers and clients? When was the last time you painted your clinic? Is the tap dripping in the toilet? How is the lighting? Is it warm in your clinic? Make a list of all the things you could potentially change to improve your business. Also asking an independent observer to take a look around or do a client survey on what improvements they’d like to see at your clinic. This can be really useful information to make your business look it’s best.

System: Now that your business is looking good, it should feel good when you run it. This means having the right systems in place to ensure a smooth transition post sale. Are your client files easily accessible? Do you have online booking? Is your business telephone number also your personal number? Do you have a website? A business should ideally not rely on one person, even you the owner (obviously if you’re a sole trader on your own this does not apply).  Do your systems only work for you or can other people easily use them? If the answer is “only for you” then you need to change them.

Make a profit: The whole point of being in a business is to make a living from it. Otherwise what’s the point of working all those hours every week to take home less than the minimum wage along with a lot of stress? If someone is buying your business they will need to see a profit over the last 3-5 years in order to deem it a wise investment. If there is no profit then your business is worthless – Harsh but True! 

Get your legals in place: Ensure the structure of your business is sound. Are you a sole trader or a Ltd Company? What are you selling in the business? How long do you have left on your lease and is it transferable to a third party? All these questions need to be answered before you sell your business. Having a good solicitor and accountant is vital when running a successful business, I highly recommend you get these two pieces of the puzzle in place ASAP.

Exit Strategy: So you’ve finally sold your business and you’re now going to do what? What are you going to do when you retire? Have you a pension in place now that you’re no longer earning an income from your business? These are all very serious questions to ask yourself before you sell your business. Regardless of whether you sell your business or just wrap it up, you need to think about these questions.

I appreciate 90% of you reading this blog have no intention of selling your business but I hope I’ve changed your mindset! I’d love to hear your feedback or comments – colin@practicenav.com 

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Colin Phillips
Business Consultant
PracticeNav

By | 2018-11-05T22:29:38+00:00 November 5th, 2018|Accounting, Business Basics, Business for Sale, Business goals, Business Plan, Business software, Client experience, Habits, Ideal Client|Comments Off on Why you should always be selling your business