Is My Business Sellable?

One of the most common questions we get when engaging with prospective clients is ‘Is My Business Sellable?’

To help you determine whether your business is sellable, we have compiled a checklist for you to consider when making this important decision.

Financial Position: You need to have evidence of the money that you say your business is making. Consistency is key! It is ok for your weekly earnings to fluctuate a little. Most brokers will calculate the average over a period of time to determine how much money your business makes each week.

Growth Potential: The question that you need to ask yourself is what can a prospective buyer do to grow the business and in turn, increase revenue? Buyers want to see what potential businesses can have. Working alongside with your broker, you need to be able to demonstrate this.

Taking Time to Examine Your Equipment: Have a look at the equipment that your business contains. This forms part of your businesses assets! If you have a cafe, this would include things like a coffee machine, the kitchen, the inside fitout, etc. If your equipment isn’t already paid off, you ideally want to make sure that there isn’t much money owing on the equipment. Your equipment adds value to your sale. So it will pay off to ensure that you’ve taken the time evaluating this.

Customer Feedback: Consider the following questions…

– Is your business known on social media? Are you keeping your social media up to date?

– What is your google rating? The higher your rating, the more attractive your business is to customers and potential buyers.

– Has your business had write ups on media outlets such as the Herald Sun, Broadsheet, Good Food Guides, etc.

– Do you have a loyal customer base? If so, how can you prove this?

Employees: Make a list of how many part-time versus full-time employees you have. How many of those employees will stay on even after you have sold your business? A buyer wants insurance that employees will stick around, as they are the face of the business. Regular customers have relationships with the employees and want to ensure that the business that they love is still the same.

You: Will your business survive without YOU? As much as we all would like to think we are irreplaceable, in this circumstance, you actually do want to your business to be able to survive without you. This is truly how you know how successful you have made your business. A prospective buyer (with the right skill set), should be able to pick up the business and continue to run it as you have done so.

If you wish to discuss this in greater detail or are unsure of how to get started, Total Business Brokers is here to help! Get in contact with us so we can work with together with you on ensuring that you maximise your business’ potential.