If you are putting your business on the market, you should realize that at any given time there are a lot of other businesses for sale. What will make your business stand out in the crowd? A lot of that is up to you.
If you are a serious business seller, there are a few questions you should be prepared to answer.
(A caveat here, if you are answering any question from a prospective buyer, honesty is the best policy. Someone who makes an offer on your business will get a due diligence period before the close of the sale to go over everything in your business with a fine-toothed comb. Any deception found during this period will likely kill the deal, and even if it doesn’t, it will breed distrust between you and the buyer that will have to be endured for the duration of the transaction as well as the duration of any training and/or consulting period.)
Question #1: What do you do to grow your company?
A good business owner is never content with just the status quo. A great way to help a prospective buyer decide on your business instead of the competition across town is to tell them what you do to keep the business growing.
Question #2: What do you do to stay ahead of the competition?
Buyers want to know that they will have a fighting chance against your competition from the moment the business changes hands, so let them know the strategies you have put in place to stay competitive in your market.
Question #3: If you suddenly had an extra $100,000, what would you do with it?
This question is all about showing that you are and have been a business owner with a vision for the future of your business, a future that a new owner will get to embrace. Answer this question by highlighting the things you would love to do, but have not had the time or resources to accomplish yet.
Are you a prospective buyer who has asked any or all of these questions? Are you a seller who has questions about how best to answer questions like these? Leave us a comment or question here and we look forward to assisting you with your business transaction needs.