Anyone who owns a business wants to make more money than they already do, but adding to your bottom line becomes crucial when you are considering putting your business on the market – now or in the future. A growing business will always be more appealing to a buyer than a business that isn’t, and surprisingly simple changes can help boost your numbers in this critical time.

It might seem obvious that one of the easiest ways you can boost your numbers is by cutting costs, but some costs happen so routinely that they may not even occur to you as an owner. For instance, what do you pay for your merchant services? These subscription-type services are something your business needs, but if you take a closer look you might find you are paying far too much. Services like these often contain hidden and unnecessary fees – and if you signed a contract for service you could be hit with a hefty cancellation fee if you find something better and want to switch. Do a bit of research to see if all of your recurring expenses are giving you the most for your money.

A second surprising way you can improve your bottom line is by keeping your inventory in check. How much inventory do you have on hand? What inventory control mechanisms do you have in place? Many small businesses don’t think they need inventory management, they just order new inventory when something runs low. Neglecting your inventory can have disastrous effects on your bottom line, however, because excess inventory eats up your cash. Excess inventory, especially inventory that probably won’t sell, can even decrease the amount of money you are able to get for your business. Keeping proper tabs on what you’re buying will keep you from ending up in a situation where you are sitting on a pile of inventory that won’t ever sell – and business buyers won’t want.

Cutting costs by minimizing unnecessary expenses and streamlining your inventory process can all add value to your business in the critical time before you sell. Even if selling is on the distant horizon, these types of changes will at least help your bottom line – so why not?

Have you thought about selling in the near future and have questions about the process? Would you like to know more about boosting your bottom line in the run up to a business sale? Contact us today and we would be happy to help.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

When you are in the thick of selling your business, you will be answering buyer questions, broker questions, attorney questions, accountant questions…the list goes on. It is also important that you ask a few questions of your own, especially of the person who may buy your business.

What kinds of things should a seller ask a buyer?

The person buying your business will be taking over for you and hopefully continuing all of the hard work you’ve put in during your time as owner. It is important to find out a few things about this new person, especially if you are going to be offering seller financing. You will need to be able to trust that this buyer has what it takes to keep the business open long enough to pay you back. Here are a few of the questions a seller should ask any potential buyer:

Have you ever owned a business before? If yes, then what happened to that business? This question will help to establish that this is a person who knows the kind of commitment of their time and energy business ownership requires. If the buyer has never owned a business before, don’t be tempted to write them off. Many people have the drive necessary to own their own business. Remember that at some point you were a rookie business owner too. 

Do you have any experience in this industry? Why do you want to own a business in this industry? It is always ideal, although not absolutely necessary, to buy a business that is within your knowledge base because it allows you to start with experience under your belt instead of at the ground floor. This question will help you determine from the get-go what kind of training and consultation periods are going to be required for this buyer.

How do you plan to finance this business? Would you require seller financing for this business? Are you a cash buyer? These questions should have already been asked and answered by the business brokers involved long before your first meeting with a buyer, but it is always good to get an answer straight from the source, especially because circumstances may have changed since the question was last asked.

As you move through the process of selling your business, just remember that you have the right to ask questions too.

Are you a business seller who is curious about the kinds of questions a seller should be asking? Do you have questions about what kinds of answers you should be looking for? Please leave us a comment or question here, and we will be happy to assist you.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com

If you are a business seller, get ready for a low-ball offer.

It is more than likely that you will get at least one offer that you consider far too low. The key to turning a low-ball offer into a successful sale? Attitude.

It can feel pretty insulting when a complete stranger takes a look at the the business where you’ve invested you blood, sweat and tears and comes back with what you would consider a ridiculously low offer.

Business is an impersonal game, and when you sell your business you will need to take your emotions out of the game if you want to be successful.

Don’t look at a low-ball offer as an insult, look at it as a starting point. The listing price of your business should never be the very minimum that you are willing to take, it too is a starting point for buyers.

The business transaction process is called a process for a reason. There will be a lot of back and forth between the parties involved over everything from the closing date to the bottom line. If you go into the process with the goal of getting to the closing table, you will be far more successful than if you go in with the attitude that everything must go your way. Also realize that not all buyers are going to think that coming in too low would offend a seller, so keep a good-faith attitude throughout the process about the other side.

Once the initial offer is in play, you can begin the process of negotiating for a price that is acceptable for both parties. This is a great time to be using the services of a business broker because they can do the impersonal negotiating for you.

During these initial negotiations you will be able to tell pretty quickly if what you have is a serious buyer who is truly motivated to buy your business. If they are a serious buyer, they will be inclined to back up their offer with the reasoning they used to arrive at that price, and will be willing to meet you somewhere in the middle. If they aren’t, then you can move on.

Again, it is critically important that you treat all offers, at least initially, as serious offers and that you deal with all parts of the business selling process without getting your emotions involved. Keep you eye on the goal of getting to that closing table and you will have a much more successful transaction.

Are you a business seller who keeps getting low-ball offers? Are you having a hard time staying objective? Please feel free to leave us a comment or question here, and we will be happy to help you get to the closing table successfully.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

http://www.InfinityBusinessBrokers.com