Some businesses are built from the scratch; others are acquired with time depending upon several factors. The biggest test of an entrepreneur lies in the fact that if his or her business is sale-ready, given the opportunity. Here are five signs that your business is sale-ready.
Systems that work
Any successful business is built with a unique set of processes and system that help it to work like a well-oiled engine without any snag or perceivable disruption to the end-user or customers. Today’s businesses no longer work under the premise, “I am the boss”. This is because autonomy as well as high-level skill development has led to systematic business practices at the organization level. Thanks to automated documentation systems for a range of applications leading to enhanced compliance, efficiency and productivity of business operations. Today, any business operation is an integrated sub-set of people, practices, systems, tools, procedures and processes.
The emergence of cloud-based storage system has made creating, editing and maintaining documents a snap. Essentially, it is all about a “cloud-based repository of enterprise software or file folders with access controls and policies. This brings us to the point that in the context of selling any business, a prospective buyer would have to see that the capabilities and knowledge required to running the business not lies in the golden hands of the founder or the key employees, but rather that which has been clinically imbibed into the internal controls and overall system of the company. In other words, the prospective buyers would ideally want to view, edit, refine or even modify a business’s systems as part and parcel of its culture. This makes the business an attractive buying proposition.
The numbers game
Knowing the numbers in and out before the idea of selling or trading business can either make or break deal. However much innovative your product or service may be, it is the company’s bottom-line and its ability to respond to market dynamics that will have the final say. It is important to know how your decision to sell your business would pay out at the end of the day. Have you forecasted all your customers and costs properly? No room for any guesswork here. There will be times when the price of your biggest input may escalate. Now, what if your product development time takes longer than expected? Sellers need to understand the whole gamut of possible outcomes. Overall, potential buyers would want to see the preparedness of your business to tackle unforeseen challenges head-on. Having a solid business plan sets the direction for the future.