Turning your Green Industry business into a well-run machine does not happen overnight, it takes time and a consistent strategy. Why wait to create a business that a potential buyer would get excited about, when you can start now! Your business will benefit from being “sales ready” even if you don’t plan to sell your business anytime soon.
There are many reasons why it’s important to be sale ready, even if you don’t plan to sell your business. Here are a few of the most important reasons:
• It can help you attract and retain top talent. When you’re sale ready, it shows potential employees that you’re serious about your business and that you’re planning for the future. This can make it easier to attract and retain top talent, who are more likely to stay with your business for the long term.
• It can improve your chances of securing financing. When you’re sale ready, it shows lenders that your business is well-managed and that it has a bright future. This can make it easier to secure financing for things like equipment purchases, marketing campaigns, or expansion plans.
• It can protect your business from unexpected events. If something unexpected happens to your business, such as a lawsuit or a natural disaster, being sale ready can help you recover more quickly. This is because you’ll have all of your financial records in order and you’ll be able to show potential buyers that your business is still a valuable asset.
• It can give you peace of mind. Knowing that your business is sale ready can give you peace of mind knowing that you’re prepared for anything. This can free up your time and energy to focus on other aspects of your business or your personal life.
If you’re not sure where to start, here are a few things you can do to get your business sale ready:
• Get your financial documentation in order for. Not only will this be helpful in the due diligence process of a potential sale, but it will be key in running a financially healthy business. This includes your balance sheet, income statement, and cash flow statement. You should also have a clear understanding of your debt and liabilities. This shows the buyer that you are organized and prepared to sell.
• See where you can eliminate risk. This could involve things like reducing your debt, improving client concentration, or getting insurance for your business assets.
• Think of ways your business can be less owner dependent. This could involve things like hiring a manager, automating your business processes, or outsourcing tasks.
• Consider investing in recurring services to increase value. Recurring services are a great way to generate predictable revenue and increase the value of your business.
• Resolve any debt or outstanding legal issues. This will make your business more attractive to buyers and could save you money in the long run.
• Look at your company from the perspective of a buyer. What would make your business more attractive to a buyer? What areas could you improve?
• Consider the tax implications of a sale. This is an important consideration that you should discuss with your accountant.
• Make overall business improvements and improve inefficiencies. This could involve things like streamlining your operations, improving your marketing, expanding your customer base, or improving route density.
• Identify underutilized aspects of the business, such as technology. Are there any areas where you could be using technology more effectively?
By following these tips, you can get your business sale ready and improve your chances of selling it for a good price, even if you don’t plan to sell anytime soon.