Value is in the eye of the beholder. Always.
Have you ever seen a very ugly, expensive item and wonder why it costs so much? Here is an article about ugly watches, most are worth thousands of dollars. They may be ugly to some, but to others they are beautiful because of the value they bring to their lives. For instance, the Seiko Sportura, shown in this article, is priced around €3500. It is an analog watch with several dials and is touted to be a “very capable watch that can display elapsed time to the 10th of a second”. I don’t need a watch that can do that, because I have a phone that can do that. The person that loves and buys this type of watch, does so, because of the numerous dials, the water resistance to 100m, and that it can display elapsed time in the 10th of a second. I am not the ideal client for this watch, but someone else is.
If you are hoping to sell your business in the future, you must have a business that appeals to someone else. Ideally, you should know exactly who would buy your business and why, and then go about ensuring your business looks exactly like the business they would want.
What do they want?
Some things are a given.
They want to know that the income is consistent, and has been for more than a couple of years. They want to know that the product is still relevant and the market is sustainable. They want to know that you have good relationships with your suppliers or distributors. They want to know there is going to be a future for the business if they buy it.
Some things are not a given and they may not even know themselves that it is important until they have a look.
Back to our watch analogy – They may have been looking at Rolex Submariner, an arguably beautiful and iconic watch. When they then see the Seiko Sportura, they realized, that they didn’t want a Rolex – an old school, wealthy business-style watch, they wanted a cool and interesting watch with lots of functionality.
The business they want will need to match their needs and align with their idea of how that new business will fit in their life. For instance, they may need to know that the employees are not only experienced and trained in their positions, but that they align with the values of the business, and that the values of the business aligns with their own values. This may not be something on their list of needs, but if the business doesn’t “feel right” to them, this may reduce the value to them.
To make your business more valuable to the future buyer, start by identifying all the different type of businesses, owners, industries, etc. that may be an ideal buyer for your business. Then, find actual business owners that fit in these categories. Choose one ideal buyer from this list of business owners. Find out everything you can that would entice the buyer to want your business. For instance, if you were to reach out to them to buy your business, what would they want from that purchase? You want to know that if they had this opportunity, they would instantly see your business as a perfect alignment with their current needs. Then, go about ensuring your business has these qualities now, so you can sell your business to that perfect buyer, or someone just like them, in the future.
Don’t expect that someone is going to be OK with YOUR business, the way you have it now. Just like marketing to your ideal clients, you want to create the ideal business for the ideal buyer so they will see the value and want to own it, and you will get paid what you feel it is worth.
“This article is 100% original content – The articles you read in this newsletter are created by Barb Stuhlemmer, not by AI.
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