So how can you, as a potential business buyer, take advantage of the opportunities out there? First, educate yourself - what kind of business would you be interested in running? What is your skill set, what do you like to do? Don't be afraid to dream - after all, this is your business you are planning! Having said that, inject a level of reality into your dreams. There is no perfect business out there, just as there is no perfect job. Look at a couple of potential businesses, and try to picture yourself running them - would you enjoy it?

 

The next step - book an appointment with us. We can help you focus your mind on what is available. We hold regular seminars on how to buy a business. Learn about the process. It isn't like buying anything else - even real estate. There are protocols you must follow (primarily relating to confidentiality) and risk elements to contend with. Earlier, I said to dream a little, but combine it with reality. This is where the reality really comes to play - the actual nitty-gritty of finding, evaluating, and buying a business.

 

The key element in selling your business for maximum value is ensuring you own a business and not just a job.

 

The biggest deal breaker when you want to sell your business is how involved/important the owner is to the successful operation and profitability of that business.  If the owner is key, the business will be tougher to sell.  If the owner is key and the skill set is very unique or rare, the business may never sell.

 

So what can you do to maximize the sellability of your business and hence its value?  Start with these key items:

 

• Take a holiday!  Plan what you need to do to keep your business running while you are gone.  Whatever you need to do to take a 3-week holiday will give you insight into what needs to be done to take a "permanent holiday."
• Set up systems to run your business.  Document all processes.
• Tidy up ownership.  If your share structure is a mess, tidy it up.  If you have minority shareholders, get them on board or buy them out.
• Document legal matters.  If you have a "handshake" agreement with any of your suppliers/landlord/customers, try to get something in writing.
• Stop cheating the tax-man!  Every dollar you save in taxes will cost you $25-30 in sale price (based on a 10% tax rate and a 2.5-3x multiplier).
• Give us a call.  We can help you prepare your business for sale even if the sale isn't going to occur for 5 years.  Call us now at 204-478-7266x110 to see how we can help you maximize your business value both now and when you eventually sell. 

If you are interested in discussing succession planning for your business, contact us at 204-478-7266x110.