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If you decide to sell the business.
So you made the decision to sell your own business. There is already an opportunity to congratulate you on the fact that your attitude to the matter is not as part of life that you cannot do without. You know, a business is an asset with high liquidity, which has its value, which means you can be called a mature owner.
In those situations where the sale of a large business is required, it is necessary to attract additional experts, including financiers, lawyers and other specialists. The owners of such a business have usually carried out such transactions more than once; accordingly, they have experience.
When selling a small company, the situation is slightly different. Most often, this transaction may be the first in the owner’s life, so there is a chance of some mistakes due to lack of experience. For this reason, you can get revenue that is less than the real value. Contacting consulting agencies allows solving such problems, as the owner is provided with a number of recommendations to avoid most mistakes.
"A little pregnant."
Often, the owners have a psychological problem that it is very difficult to put up with the sale of the created company and realize the situation that this company will no longer be its property.
In the subconscious of the future seller is a real fight. As a result, a person practically does not make efforts to complete a transaction. Often the process simply goes by itself with the thought that if someone needs this business, they will buy it, otherwise you can leave it as it is.
However, in practice, it turns out that there are not many people who want to make a deal, therefore, the sale does not occur or the cost is significantly reduced relative to the real price. It is worthwhile to realize that any enterprise is also considered a product. Moreover, this product is very complex and has a high cost, so the search for a buyer may be delayed. To carry out the sale will have to make a lot of effort.
If you have made the final decision to sell your own business, then you should treat the deal as a full-scale project. Big money is at stake, so you should correctly prioritize and plan all the actions. If you have fluctuations, you need to postpone the transaction until a final decision is made.
There are situations when a business is sold for the reason that a person is simply tired of the business, and the moment has not come in terms of obtaining maximum benefits. A person is simply tired of doing this business and he has accumulated fatigue and irritation. The purpose of this sale is to get rid of the enterprise as quickly as possible, so the price can be as low as possible. The only advice in this situation is to think a little about the need for these actions. It is better to take a short vacation and weigh all the advantages and disadvantages of this solution.
All customers are different.
Business as a product is considered quite complex. Therefore, its customers will also be difficult and vary among themselves. All potential buyers can be divided into two main groups:
1. Financial investors. These people are interested in the income that your company brings, as well as evaluate its price;
2. Strategic investors who are interested in the presence of technology at the enterprise, the staff and markets your company occupies.
Accordingly, the needs and requirements of each type of customer will vary. For some, some factor will not be important, for others it will become a determining factor. Finding a buyer means getting really good income.
For a small company, the situation becomes even more complicated. Potential new owners can look for options for investing part of their funds, providing work for relatives or spouses. Someone needs to expand similar production. Before starting sales, determine the circle of people who may need to buy it. Put yourself in the place of the future buyer and decide what will be the most important and what actions should be taken to make a positive decision.
To each his own.
You can recall one story from the post-Soviet era. A company of Western investors who want to make a purchase has arrived at one of the plants. The company’s engineer loves his enterprise and begins to present them with items that he is proud of. This may be a unique production line, developed from improvised means, allowing to solve any problems. For an engineer, this is a curious solution that inspires respect and admiration, since specialists with disabilities were able to find a solution to the problem.
But only visiting investors will not be interested in such details. They want to invest several million and they are not interested in how inventive craftsmen worked here. They need to enter a new market and create a competing company there. A sales manager must be present at such transactions, but he is on vacation at this moment. The buyer wants to receive the information that he needs to make a decision, so he needs to immediately show it.
As an example, consider selling a car dealership. If the buyer is the owner of a similar business, then the flow of customers and the availability of certificates from your specialists, as well as their experience, will be important for him. As a result, you will spend most of the time in the sales room. If a person wants to invest his own money, then it will be much more interesting to him how stable this business is and what his income is. If the buyer is an important businessman who plans to acquire a company for his wife, then the main significance is whether his wife will like this establishment. Therefore, the main rule will be not to impose your opinion on the buyer, but to find out what is important for him.
Appearance is very important.
Selling a car usually requires cosmetic preparation. The business story is very similar, but preparation for the sale will be important. It is worthwhile to determine in advance what moments the future business owner should pay attention to. Next, it’s worthwhile to take actions so that the advantages are immediately evident, and the disadvantages would be imperceptible. The main difficulty of such decisions lies in the inability to evaluate a business without involving outsiders.
It is almost unrealistic to identify all the flaws that can catch the eye of the buyer. For many of them, owners simply stop paying attention over time. There is an opportunity to invite specialists who have experience in this field, but here the question arises of the financial profitability of such an event.
An acceptable option is to consider inviting your friends to the company, who will be able to evaluate your business from their own point of view. This procedure is the simplest and even with its help you can get some interesting facts.
Pre-sale preparation is not only about cosmetic methods. Often, you can improve the attractiveness of a business from an investment point of view with simple pre-sales solutions. Optimization of the management system, tidying up accounting and conducting audits will positively affect the value of the business. Investing in pre-sale preparations of several tens of thousands of rubles can increase its potential value by several thousand. Agree, such decisions will be justified.
Proper planning is very important.
Buying a business means that the buyer acquires the company with the profit for several years ahead, and not just today. Only a properly prepared strategy and a prepared business plan will allow us to demonstrate how promising a business is and what income it can bring.
Such documents are usually present at all large companies. The affairs of medium and small enterprises are much worse and they are unlikely to find such documents. Most often, actions are carried out intuitively, and plans are in the heads of the owners. If you have the gift of persuasion, and you plan to convince the future buyer of profitability, then you can try to do without additional documents. However, reinforcing all the beautiful words with forecasts and statistics is considered the best option.
Even the presence of documents will allow you to demonstrate to the buyer how important your intentions and attitude towards business is really serious. If the business does not have a clear perspective, then its value will be evaluated only at the expense of assets at the moment. And if you have a clear plan and guarantee a stable income, you can get a much higher income.
Do not forget about advertising!
Proper design of the document is no less important than its contents. If a business plan is presented before a potential buyer, which is drawn up on a simple sheet of paper, then it will not cause reliability and trust with the investor. However, if you beautifully format all the data and present it to the potential buyer along with the available statistics, then the perception will be completely different.
It should be understood that the main role is still played by the evidence base and priorities in the ranking. Any company that considers itself serious and its owner plans to profit from the sale must have four main packages of documents:
1. A business plan with a well-developed structure and strategy for future development. This document is necessary for domestic consumption and should be checked by all company managers;
2. An investment memorandum is a business plan that, in its content, takes into account the interests of a potential buyer. In such a plan, cases should be considered that may interest the current buyer;
3. Information memorandum. This is a summary of all the theses of the memorandum, which is drawn up on 10-50 pages. The main goal of the document is to create interest from a potential buyer. It is with this document that negotiations begin with a potential buyer;
4. Teaser - is a shorter memorandum, which consists of a small booklet containing all the benefits of a business. This document is considered a bait and allows you to attract potential customers for further negotiations.
Forewarned is forearmed
Selling a small business to any seller carries rather high risks. Usually it is connected with the fact that the alternative to this sale is the purchase of a similar business, which is planned to be developed from scratch.
The costs are comparable, since it is not a large plant, the construction of which requires many years. The most dangerous situation is the sale of a client’s business, when most of the revenue comes from the competent work of sales managers and the presence of connections and experience. Negotiations can be ended with the sale being carried out together with key employees. As a result, you will be left without potential revenue and give the buyer part of the market. Therefore, you must first reduce the risks.
Attachment of clients should not be carried out to a specific person, but to the name and image of your company. The availability of technology should be obvious and attract customers. However, transparency is not allowed, as they can be used by a competitor.
Fish should be found where it is found.
To believe that at the beginning of the sale of a business a huge number of buyers will gather naively at the office door. Such situations arise extremely rarely, and usually you have to look for a buyer yourself. Currently, in the vast network you can find specialized sites and companies that offer services for the sale and purchase of a business. This process has become much easier.
If you have a portrait of the buyer, you can search for them among your friends. In this case, pre-prepared teasers will go into action. You should not expect that the buyer will come to you. Use all options in order to attract potential buyers.
Evaluate the business from the outside.
Preparing to sell a business involves using all possible methods. There is a good option to verify that you have done everything to improve the value of the enterprise. Go to the site and find some ads for the sale of a similar business. Try to act as a buyer, and evaluate if there are reasons why you would buy this business or refuse this idea. What exactly caused doubts in you and what you paid attention to. Make a list of such problems and evaluate your own business. Perhaps something was lost and needs to be improved.
Do I need a sale?
There are a number of activities that are required to properly prepare a business. If you do everything right, you may not recognize your business, because it will become much better and its profit may increase. About 30% of sellers in this situation begin to doubt whether it is worth selling the company, because it is so good.
This is a normal situation and it means that this business has potential that has not yet been exhausted. There are real ways to improve it and increase profits. As a result, it is possible to increase its real price. Do not worry if you refuse to sell, because the effort spent will certainly not be superfluous.
Ovo je automatski prijevod.
Kliknite ovdje da biste pročitali publikaciju na izvornom jeziku.