The journey to maximise your business value doesn’t just come down to the bottom line (although it’s very important); buyers will look for a whole host of value features when they are considering a purchase.

Whether you’re ready to put up that ‘for sale’ sign and take your business to market, or you want to simply be prepared for when the time comes, the question you might be asking yourself is “What is my business really worth?”

Every business is unique, and alongside those all-important figures, the value of a business can vary for each buyer and each market. However, there are certainly some consistent factors that every owner should take into consideration when you are aiming to maximise your business value and prepare for sale.

Building Your Brand Name & Identity

Generating buzz for your business requires a dedication to smart marketing, and understanding what makes your business stand out from the rest in your industry.

Perhaps you’ve ridden the wave of great word of mouth repeat clients, and now you’re looking to set in place repeatable and consistent marketing action that utilises these stellar testimonials, or you’re creating content that’s getting great reach on a platform like TikTok or LinkedIn. However you decide to do it, a strong brand will always make a solid case when looking to sell and increase your business value.

Your People Power

Having a solid base of staff that understand your business goal is essential – your people can make or break your business. When a buyer comes to review your business as a whole, they will want to understand what human capital they are working with and what will be passed on to them with the sale of the business.

A fantastic business owner and leader is a great asset, but if you feel that you’re personally responsible for the success of a business (for instance, most customers want to deal with you as the owner), then it’s time to review your recruitment and training strategy – how can you pass along the essence of what you do, and replicate this amongst your staff?

The Proof is in the Paperwork

Every buyer will want to do their due diligence on your business, and this means running the numbers on your supporting accounts and other documentation. Ask yourself, if you handed over your database or file storage to a potential buyer, would they be able to easily navigate and find the information they needed?

Record keeping is essential, and you will need to be able to pull all relevant data in the sale process, across financials, other documents of licensing and employment agreements – if this administration side of your business is feeling a little haphazard, take the time to enlist the help of experts to get your house in order and maximise your business value, as this will also highlight to a buyer that you are running the business in a logical, organised manner.

Streamlined Systems & Operations

Your business operations will always take some getting used to for a new owner, but if they plan to keep up your system during the transition and handover period of a purchase, then they will want to know that you have documented the essential day-to-day systems that make your business tick.

Take a look at where you can streamline and refine your processes, and take into consideration the feedback of your staff, as they will have valuable, first-hand insights into where you could save time and money, or perhaps implement technology to work smarter, not harder.

A clean system of operations will show a buyer that you’ve put time into creating a business flow that works, and that can be handed over to a new buyer without serious disruptions to sales, staff and customers.

Next up in our ‘Sale-Ready’ series, we’ll take a look at some very targeted and specific questions you should be asking yourself in order to prepare for sale – the kind of conversations a business broker will have with you to cut through the noise and ensure that you are sale ready, and prepared to take your business to market.