Published on January 12th, 2014 | by MariaJohnUK0
How to continue generating revenues while you sell your business
Other business owners will be interested in buying your company if they think doing so will give them access to more profits. Let’s face it. Even the most compassionate business owners aren’t interested in buying your company simply to keep it from failing. Therefore, as you partner with a business broker to find qualified buyers, finalize documents and complete the sell your business process, keep the goals that buyers have at the forefront of each of your decision making efforts.
While doing this, you’re going to have to find a way to continue generating revenues even as you sell your business. If you let revenues slip, the value of your company could decrease, making it harder for you to get top dollar for the company you’ve worked tirelessly to build.
Instead of thinking about the value of each customer transaction, consider the lifetime value of each customer relationship your business enjoys. Nurture these relationships by surveying customers, taking action on their suggestions and by establishing and communicating special deals like holiday sales and birthday discounts to loyal customers.
Nurture these valuable relationships properly and you could keep these customers buying from you even after they become aware that you are involved in the sell your business process. By upselling and offering complementary products and services to existing customers, you can also continue to grow revenues, making your company increasingly attractive to potential buyers.
Concerning complementary products and services, Inc. suggests that you “put a little thought into what your customers are buying and the other needs that those purchases might trigger (think printers/ink cartridges).” Also make it easy for customers to tell their contacts about your products and services. You can do this by adding share buttons to your company websites and social media pages.
Offering free products and services to customers who recommend your company to others is another way that you can make it easy for customers to help sell your products and services. Above all, stay in touch with your customers. Don’t abandon or decrease communications with them simply because you are trying to sell your business.
As you continue to position yourself to sell your business, start getting budgets, sales sheets and expense reports together. Entrepreneur reports that “Buyers evaluating your business generally require at least three years’ worth of financial information.” Furthermore, “The more formal your statements (accountant-reviewed or -prepared vs. internally generated statements), the better the impression you’ll make-and the easier the due diligence for a buyer. Tax returns may suffice.”
Also work with an experienced business broker such as the specialists at tworld.com to get your legal paperwork together. This involves reviewing incorporation papers, licenses, permits, partnership documentation, leases, utility agreements and client and vendor contracts. You should also review employment contracts with the business broker you work with. Included in this sell your business process should be a detailed review of employee base salaries, bonuses, stock purchase agreements and benefits contracts.