Your business is likely your baby: you’ve nurtured it, cared for it and experienced sleepless nights, early mornings and late nights in an effort to build a viable business. So it’s then only right that when you come to sell your business that you secure both a fair price, as well as the reassurance that the person or company that you’re selling to will take your carefully grown business forward. So here we take a look at seven savvy, must know tips for selling your Startup business and paying the process the due diligence that it commands.
- Show sellers your most promising figures
When selling your business you’ll need to provide a comprehensive set of figures that cover everything from profits through to revenue and onto costs. What’s key to grabbing attention however is to highlight the most promising of these figures to demonstrate just what your business has achieved. You may want to speak with an accountant in order to achieve this whilst still maintaining transparency throughout your figures. Here are some good tips.
- Be sure to highlight the transferability of the business
Potential buyers will want to know that your business will operate as it should when and if it comes under their care. So always be sure to explain any training or support you’ll provide.
You should also highlight your marketing efforts and the ways in which you establish leads, sales and, consequently, ongoing revenue.
- Be prepared
Being prepared to sell is half the battle of selling, particularly when there is so much information to present and so many figures to gather. Generally speaking you should ideally want to begin preparations for a sale 12 months before hand (although this will, of course, differ depending upon the size of your business, your industry type and the number of due diligence tasks to be undertaken) according to Aperio Intelligence.
- Demonstrate your growth consistency
A company that can demonstrate revenue that promises to grow consistently, rather than revenue that merely manages a constant plateau, is always going to be of the most attractive proposition. So be sure to highlight figures that demonstrate your growth and back them up with a growth plan for buyers so that they can see the tangible steps required for continuing in your successful footsteps.
- Appreciate the pace of acquisition
Buyers want to know that should they decide to forge ahead with the purchase of your business that the transition will move swiftly. So be sure to highlight your readiness to sell and have an idea of the practicalities to cover the transfer of business along with the associated estimated timescales.
- Understand the importance of expert input
Selling a business is a legal process and one that can demand a range of specialist skills, from that of an accountant, right through to a solicitor. However it can be all too easy to become bogged down with expert input, from those that may advise on preparing for acquisition right through to marketing guidance. So choose carefully and appreciate the areas where you truly need an outside helping hand. Here are some legal tips.
- Undertake an overhead review
Considering your monthly costings and attempting to drive them down will make your business both more attractive as well as financially more robust. So comprehensively review all of your outgoings and operational costs.
- Be prepared to safeguard your intellectual property
Are your products or services adequately protected? If you’re unsure then it may be worth seeking out legal advice, particularly if you work within the realm of technology (or use it as a key differentiator) where protection can be a decidedly tricky business.
- Consider the sale of your business as a whole new marketing effort
Just as you’ve marketed your products or services now is the time to market your business. Of course the exact tact that you adopt will depend upon your business and industry type, however generally speaking there will be an online platform out there to advertise your business as on the market, which should serve as your first step towards sale. Beyond this you should perfect your business information pack and be prepared for plenty of inquiries, questions and queries.
- And finally… consider the timing of your sale
Before moving ahead with the sale of your business it is worth considering whether now is the right time to sell or whether, given 12 months, you could grow your business figures to boost your sale value.
These 10 tips will make selling your start up a lot easier and ensure you get the best possible deal.