Questions you should be asking yourself BEFORE you sell your company

Q&A 2018-05-16T13:17:45+00:00

Get all of the full answers to these crucial questions and more…
at the “Your Business- Your Asset” Seminar 2018 Auckland.

Most businesses are leaving a fortune on the table when they are sold. Things like incorrect valuations of assets and systems, poor management teams and lack of team coherence all cost you. When you add in under-leveraged sales and marketing strategies, customer service that doesn’t capture the hearts and minds of your customers along with a myriad of other factors, you get a compound effect that makes a prospective buyer, partner or investor say, “I’m not sure about you”. You want to be positioned as irresistible, because all of your ducks are in all the right rows. How important is what will probably your biggest transaction of your life? And what will it mean if you get it wrong?

Do you have IP that you don’t know how to leverage, or systems of processes you could licence or franchise. And are those proprietary system adequately protected? What if you could extract the true value from these hidden assets and leverage them while you own your business and to add value and exclusivity when you sell?

Theft of IP can be expensive for you if you haven’t got the right protection in place. You not only have the issues of proving it’s yours, you also potentially have lost revenues and market share along with all those sleepless nights, fuming at the thief and yourself for not getting protection.

Many business owners use the pin stickers method or their accountant to determine the value of their asset. Just like some real estate agents, there are business brokers who are more interested in their commission than getting you the best possible price. How much more confident will you be when you have a documented and quantifiable valuation for your business that is backed by hard numbers and that details out every aspect of what it’s worth? Think about that…

Do you have systems and processes in place that deliver the maximum value and how great you are to your customers. Have you got tested and proven sales scripts – customer acquisition methods that work when you aren’t there? Are you positioned as being the most profitable company in your industry. If you are like 95% of businesses in your industry and your competitors, the answer is no.

There has just been a change of government and new policies will affect you at both the micro and macro levels. There are currency issues that may arise along with other potentials such as reduced access to foreign markets. We don’t know for sure. All we do know is we live in uncertain times so it makes sense to glean as much intelligence as possible on the many potential scenarios that may be ahead.

We have all had that experience where we are angered, disappointed or underwhelmed by the experience we have in a business transaction. It costs the business owner revenue, reputation and market share. Are your margins massive enough that you can afford the time to recover from the 1 bad experience one of your customers has? And do you know with certainty it won’t happen again? Doesn’t it make more sense to implement processes to ensure your reputation is always AAA+ rated?

Many businesses have teams yet few of them actually get best value from them. So how will you set up the business so you get more time off in a way that works for everyone? You need real techniques to get a team working together. Actual things to implement tomorrow.

When your database is leveraged effectively and ethically it could be one of the most important aspects of your business. Is yours used for customer profiling, segmentation for campaigns and demographics and all the other ways it can be applied in growing and maintaining your business? Some say that your database or list is your most valuable asset.
It is said, “Know thy customer!” Sadly, many business owners don’t or their beliefs and information is out of date. We live in a rapidly changing world so it’s not your fault.

It is also said that targeting the right customer is the difference between a so-so transaction and one that is life changing.

Yes, it is important. Branding encapsulates every aspect of every activity your company does. And many businesses focus on branding before they have the other aspects of their sales system in place. It should be a wholistic system where everything combines with and compliments each aspect of the system. You must also consider your overall strategy and the tactics you use to achieve it.

In any major transaction, there are so many moving parts you must keep an eye on. Too many to list here. You need to be aware of what these things are before you sign on the dotted line. Because there’s no 2nd chances you need to be prepared. There are some shady characters out there.

As a business owner you almost certainly track and measure certain metrics in your business. The thing is – are these the numbers and stats that a prospective buyer wants to know and will influence the to purchase or invest in your company?

Insurance is more than just a way to hedge or offset risk. It can also be used as a business tool. You need to understand the risks in insurance as well as the benefits. You want to avoid something going wrong that you cannot mitigate against.