California Business Broker .com: Spring Cleaning
As a California Business Brokers, we are often asked, "what should I do when when I am selling my business?" The valuations for selling a business focus almost solely on the strength of your earnings, BUT there are some additional things that an owner can do to make the process go more smoothly.
On this page we will focus on spring cleaning. Yes, you heard this right - cleaning.
Reading this, you may say, "I already have a cleaning service." I am not really referring to the actual cleanliness of your workplace, but really your organization. Just like real estate, neat, organized, uncluttered spaces present well to buyers.
Try to imagine yourself as a buyer. What would you like to see when you visit a business? Walk through your office and try to imagine that you have never been there before. Buying a business alone, is overwhelming. A cluttered and disorganized workplace will be a unneeded distraction.
Here are some tips:
1. Examine your workspace. Are there items or equipment that has not been used in years taking up space? Take a hard look at them and see if you can do without them.
2. Do you have inventory or equipment that is obsolete? If you do not want it then a buyer will not want it. Many sellers think that they can sell some obsolete items with their business. You may sell your business but I guarantee you that the buyer will not be paying extra for old equipment.
3. Get rid of or repair anything that is not working. You do not want a buyer to inquire about an item and have to tell them that it does not work.
4. Remove any rubbish. Construction, manufacturing, distribution, automotive, etc. - it is somewhat normal to have a fair amount of debris from projects laying around. Better to remove that stuff. Have a employee make a run to the dump, get an additional dumpster or consider 1-800-Got-Junk. That junk could be gone by tomorrow. A buyer will see that pile of debris as an additional headache.
5. Go though your inventory. Are you overstocked in certain areas? If so, consider taking some steps to sell down those items. But remember, you want your inventory to be at normal levels, not bare-bones.
6. Remove any non-professional decorations or personal items from the workplace. If there is anything that is not essential to the work that you do, remove it. If you do not want an item to sell with the business, it is better to take it home before you start showing the business. Did you just receive a one-of-a-kind piece of furniture for your office? Take that home and get a replacement from Office Depot. This applies to pets as well. Many owners like to have their pets at the workplace. A potential buyer may have an allergy.
7. If you do not have a cleaning service, a good cleaning, polishing or painting will go a long way. Paint is often a really inexpensive way to make an area look better.
8. Cleaning is a must-do for any restaurant or retail business - or any business that has a good deal of customer traffic.
When selling a small or medium sized business sometimes the small details really make a big difference. Your business's product, service and earnings will prompt a buyer to look at your business. The goal is to have them visualize themselves running the business once they visit and to help them fall in love with it.
Are you considering selling your business? If so, I would be happy to work with you and help you to maximize your business's value.
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