Owners who want to exit in the near future are going to need to think strategically like buyers to determine the best way to restructure and reposition their businesses in this new world.
While deal flow may be slower than where we were last year at this time, buyers are out there actively looking for promising acquisition targets right now. And, if you want to sell your business, you need to make sure you’re ready.
It’s the optimum time to think like a buyer. With fresh eyes, examine your business strategically from their perspective. Dig into every aspect of your business to make sure all of their criteria are met. A great place to start is by evaluating your products and services.
They’re looking at your business as a group of processes that produce products and/or services that generate cash flow. They want to buy profitable businesses that run smoothly, have minimal risk, and strong future potential.
As you approach your business from a buyer’s perspective, some key questions you’ll need to address include:
- Which products / services are working and which are not?
- What are your competitors doing?
- Which parts of the business do you need to re-engineer?
- What should be eliminated?
- Which new opportunities should you pursue?
Evaluating Your Product and Services Offerings
As you go through this process, you’ll need a methodology to measure and evaluate which products and services are winners and which ones are losers. To that end, we’ve developed a Strategic Product and Services Evaluation Tool, which you will receive at no cost when you attend our Rebuild Your Business with Your Exit in Mind workshop.
This tool will enable you to:
- Evaluate financial performance
- Determine market attractiveness
- Compare your offerings to your competition
- Evaluate risk (i.e., stability in recession, seasonal fluctuations)
- Gain strategic perspective
For most businesses, the COVID-19 pandemic has shown us where the cracks and weaknesses are. You’ll need to make the needed adjustments to improve the saleability of your business – whether you decide to transition internally or to an outside buyer.
Going through this process will help you determine the most efficient and profitable use of your resources and increase the value of your business. Having a focus and knowing that you are making progress toward your eventual exit will help you maintain your personal energy and gain the momentum you need to achieve your goals.
It’s Time to Reap Your Reward
Join BTA’s FREE membership to gain access to our Transition Readiness Assessment which will help you determine how ready you are to exit or transfer the ownership of your business to others. You will also receive a FREE Introductory Course and an electronic version of our book Cashing Out of Your Business – Your Last Great Deal.