Want to improve your company’s sales price by two or three times? Who wouldn’t want to? Do you know that seventy percent of companies that are placed on the market never sell? If you follow these three procedures, you will not only sell your firm, but you could also improve your sales price by at least two or three times.
1. Install Systems
- Who answers the phone when customers contact your company?
- Do they always speak the same thing and stick to a script?
- Do you provide a genuine experience for your customers when they come in?
- Is the greeting the same each time, such that the experience is recreated?
- Do you utilize the same language to clinch the sale and engage the consumer when you meet with them? Or do you simply go with the flow?
- Do you always follow a checklist after you’ve established your business?
- Are the goods or papers utilized consistently?
- Do you consistently provide the same high-quality work product?
- Do you follow up with your customers once a month after the transaction is completed?
- Will that contact takes place even if you are not present? Is each contact well planned?
- Do all of your workers understand their jobs and at least one other person’s job?
- Are there scripts and checklists?
- Do they understand what you expect of them and how you will evaluate their performance?
- How do you assess the performance of your business?
- Do you have any idea how many leads were closed? Do you know what your advertising’s return on investment is?
- Do you keep track of your payables and receivables and check them on a weekly basis?
- Do you keep accurate financial records on a regular basis?
- Do you get weekly flash reports that allow you to examine your whole company in thirty minutes or less?
Predict what questions a potential buyer will ask when they investigate your company. Every firm must have six systems in place. Your company is an investment to them. You may lower your sales price in half or more if you don’t have them.
2. Prepare Your Company for Sale
Every privately held company will be sold, go out of business or eventually transfer ownership. No owner lives indefinitely. The company will be sold, whether to family, workers, other shareholders, or other parties. Failure to sell will very certainly result in a liquidation, but even that is a sale, just not the one you desire.
When a person is ready to retire, they begin to consider selling their company. Unfortunately, most situations required two or more years of planning ahead of time. The prospect of retirement naturally leads to a reduction in the number of hours worked. Typically, this results in a decrease in revenue. If you wish to sell a firm, do it while revenue is growing rather than declining.
Every firm has a natural cycle of increasing and decreasing revenue. The key is to sell while sales are increasing. If you sell when sales are down, your price will decline as well.
3. Create an Effective Sales Team
If you were purchasing a company, would you choose one that meets with its lawyer and maybe its accountant on a regular basis or one that only seeks guidance when it is in trouble? Would you rather have a company that planned ahead of time and prevented problems or one that jumps from one fire to the next? The buyer of your company thinks similarly to you. You must plan ahead of time and have competent counsel who keeps an eye on you on a regular basis. Buyers understand that this implies your company will be simple to investigate for due diligence and will be free of surprises.
