Many business owners are toying with the plan to sell their business. There is a lot going on in the world of retail and external environment. Consumer behavior has changed, the customer journey is completely different than in the past, and the provider side is also evolving.
The outlook seems uncertain and then you ask yourself whether your business is still marketable. A good store is still marketable, even in economically depressed times.
What should your store meet when selling?
There are some basic factors that are very decisive in this. The three most important ones are:
- The quality of the location
- The quality of the store concept (online/offline proposition)
- Revenue/Returns.
Quality location
When considering the quality of a location, you don't have to immediately think of an A1 location. What is important is that the environment you are located in suits the type of business you are operating. That may mean that a location where many passers-by come is a prerequisite, but it may also be a run-up street where you can function well or even a solitary location.
Quality store concept
An open door, but very important. To what extent is the business you operate current and interesting enough for a buying party? It is not only revenue that determines this. Think about collection structure (brands), store image/store concept, active entrepreneurship (visibility and presence in the market, current customer base and a good online proposition).
The online/offline proposition is becoming increasingly important. A webshop is not necessarily a prerequisite for this. The customer must recognize himself in your store concept and wants to do so in the places where he/she orientates.
Revenue or profitability?
It is not revenue that determines the likelihood of success in a sale, but the profitability of your store. A good return in a business that has proven itself over a longer period of time in its market area is of interest to a buyer.
Both start-ups, as well as entrepreneurs with several branches, often choose to take over because of the already acquired market position.
Getting your business ready for sale
The selling party is often unaware of the importance of operating a current and forward-looking store. Often entrepreneurs unknowingly take a step back in the final years of their careers. This can substantially reduce the chances of selling.
So I advise entrepreneurs to take another critical look at their business operations and make improvements where applicable before you market your business. What are you good at and where can you improve? Optimize your collection, modernize your store and make sure you have an up-to-date business model. Make sure you are strong both offline and online and that you are adding value to customers.
A sales process: how long does it take?
The duration of a sales project can vary greatly. It depends on factors such as tax complications and the financial position of the entrepreneur. If there are no fiscal complications, the process usually takes between at least one to three years.
Here, the preparation phase is crucial. Before you can initiate the sale, you are sometimes two to three months away. Then comes the search for buyers, introductory talks, and finally the negotiation period.
Advice for professionals considering taking over a store
Keep looking critically at the quality of the location and concept. Provide a distinctive store and make a good plan. There are still many great opportunities in retail, despite the challenges.
It is important not to stick to traditional methods. The world has changed, and you have to adapt to the new reality. A strong online proposition alongside your physical store is indispensable today.
