Imagine this: you are busy running your business, when suddenly you receive an unexpected phone call. On the other end of the line, someone anonymously reports interest in your business.
It happens to many business owners: a potential buyer or M&A adviser who inquires whether you are open to a sale. It may come as a surprise, or feel like a show of appreciation, but the question remains the same: "Hello, is your business for sale?
The first reaction is often confusion or curiosity. You feel stroked, wonder what your business might be worth, or, conversely, think, "What are you getting into? These kinds of unexpected questions have an impact. They force you, perhaps for the first time, to consider the future of your business. But are you prepared?
Thinking from a potential buyer's perspective
Many entrepreneurs are focused on the day-to-day operations of their businesses. They work hard in their business, but not necessarily on their business. And that's where the crux lies. The problem is that we often have blind spots. Maybe you pay little attention to a specific area, simply because you don't like it.
Yet there can be great opportunities here. Consider, for example, a marketing strategy that is underwhelming or automation that could be more efficient. By improving these underexposed facets, you not only increase the current profitability, but also the future value of your business.
Post an anonymous sales profile on Brookz now and bring your business to the attention of 50,000+ entrepreneurs and investors!
Working on your business
It's good to think of your business like a house going on sale. Many homeowners wait to do maintenance until after they put their home on the market, but this is a waste. After all, you never got to enjoy the improvements then.
The same goes for your business. This means that investing in your business not only ensures more profits now, but also a higher valuation later.
Buying your own business
Do a thought experiment: suppose you wanted to buy your own business, how would you look at it? What would excite you and what would worry you? Better yet, invite an expert to do this analysis with you. This could be a business friend, a fellow entrepreneur, or a business consultant. Uncover the strengths and weaknesses of your business and create an improvement plan.
A focus is the strategic fit of your operations. Think carefully about what adds value for you, but especially for a potential buyer. This will not only give you a clear picture of where you stand, but also create concrete goals for the future.
Risks affecting value
Also look at factors that can affect the value of your business as well as pose strategic risks. Consider dependence on you as the owner, a few employees or a small group of customers or suppliers. Diversifying risks is crucial to ensuring stability of value.
Ready for the future
In short, the unexpected question of whether your business is for sale should not overwhelm you. By actively working on your business now, you ensure that it is not only a pleasant place to work, but also ready for the future. With a business that is in good shape, strategically positioned and with a plan for continued growth, you are in a strong position - whether you decide to sell or not.
