Management is one of the most overlooked areas for planning. Generally the business owner or owners are the management team. An easy test to determine how solid your management team is to ask yourself "If you were to leave your business for a month, what shape would the business me in when you came back?" A lot of business owners know that if they leave things will not go well. They are putting in 60-80 hours of work a week and when they do take a vacation for even a long weekend, you hear them complain about how much work they have waiting for them when they get back. Business buyers want to buy a business and they never want to buy a 60 hour per week job where they cannot take a vacation.
Know MoreA business generally develops great customer loyalty over the course of its life. Being able to take certain steps to help ensure your current customers continue to return to your business is something every business owner should plan for. That means having agreements with customers, solidifying a marketing plan or other positive steps that can help a potential buyer see that your customers will become their customers.
Know MoreVendor or supplier relationships are often forgotten about in the planning process. Often business owners have long relationships with vendors. This relationship can often lull us into believing that vendor will keep supplying the business the same quality products in the amounts and price ranges that we are used to. In reality, if steps are not taken to ensure those vendor relationships are stable, there is nothing to guarantee that the new owners will have the same relationship with your vendors.
Know MoreMany business owners do not see growth and innovation as that important especially when they are nearing the end of their time as the owner of the business. But when you think about someone that is buying a business, a business that has new innovations in the pipeline and has new room for future growth is going to be a lot more appealing. Business purchasers do not want to buy a business that is going remain with the status quo forever. They want to buy a business that will grow their investment. Having the processes in place that show that your business is already innovating and growing can be a lot more appealing because new owners do not have to come in and put those process in place.
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