When getting ready to sell your business, making your company stand out to potential buyers should be at the top of your selling a business checklist. If you don’t showcase your unique selling point, diverse customer base, and great financial performance, you’re unlikely to attract high-quality buyers. Let’s have a closer look at how you can make sure your marketing materials reflect your company’s distinctive attributes.
Selling a Business Checklist: How Can You Make Your Business Stand Out to Potential Buyers?
To successfully sell your company, you have to make sure that your financial performance is great. However, this isn’t the only factor that can set your business apart from others in the same industry. Savvy buyers will consider a wide range of aspects before making a decision. Aside from your financials, they might be interested in your unique selling points, the scalability and potential for growth, your processes, and your intellectual property.
Additionally, they will want to learn more about the people you work with, including your employees, customers, suppliers, and other community members. Before making a decision, most buyers will carefully review your company’s relationships and reputation. If you’re hoping to sell in the next year, now is the time to optimize your brand’s positioning within your market.
Showcase the Company’s Financial Performance
The financials of a company are vitally important, so they are one of the first things potential buyers will ask for. To make a good impression, disclose all the necessary information clearly and concisely. Focus on revenue growth over the last few years. Buyers are particularly interested in businesses that have become more profitable over time.
Showcase the kinds of improvements you’ve made to increase your business’s income. If you’ve recently made investments, demonstrate how they are paying off. Disclose key metrics like the customer acquisition cost, the average order value, and the lifetime value of your customers. Additionally, it’s important to be upfront about the amount of debt your business carries. If you’re managing your debt responsibly, it won’t deter potential buyers.
Clarify Your Unique Selling Points
When creating marketing materials for buyers, don’t forget to emphasize your company’s unique selling points. What makes it different from other businesses in your niche? Why do your customers work with you instead of your competitors? Highlight the features of your company that set you apart. They could be excellent customer service, an innovative product or service, or a unique combination of services.
Some businesses also have a particularly strong brand reputation. They are recognized as leaders in their industries or household names. If you don’t yet have a positive brand reputation, consider optimizing your online platforms. Build an SEO-focused website and attractive social media profiles. By using digital marketing strategies consistently for several months, you can increase your company’s visibility and reputation.
Show Buyers the Potential for Growth and Scalability
Highlighting how well your company is doing at the moment is important, but it isn’t as crucial as the potential for growth. If your company isn’t scalable, it isn’t very attractive because it is unlikely to produce more revenue in the future. There are several ways to demonstrate growth potential to buyers. Firstly, conduct a thorough market analysis and present your findings in your marketing package.
Provide information about current markets you’re serving and untapped markets that could be interested in what you have to offer. Secondly, demonstrate how your product or service can be improved and developed in the future. Finally, explore how technology can be used to automate and speed up certain processes, decreasing the company’s costs and boosting productivity.
Demonstrate the Skills of Your Employees
Businesses with strong and loyal teams are invaluable. That’s why your selling a business checklist should include highlighting the skills and unique attributes of the people working for you. Determine who your key employees are, how each one contributes to your company, and how your employees will help to smooth out the transition process.
Emphasize Your Diverse Customer Base
If you’re well organized and diligent, you have a lot of information about your customers. Don’t hesitate to share some of this with potential buyers. By showing that you already have a diverse and loyal customer base, you are making it clear that your business isn’t at risk, even if market conditions change over time.
It’s also worth considering how your customer base is likely to change in the future. Companies that attract elderly audiences might do well because the number of people in the 65+ age group is steadily increasing. Similarly, businesses targeting young people can be very profitable because millennials and Gen Z represent a large percentage of the population. Additionally, many young people are early adopters, so they are willing to try out new products.
Explain Your Intellectual Property
Intellectual property like patents and unique processes can be very valuable because it sets your company apart from everyone else. High-quality intellectual property provides licensing opportunities, gives your business a competitive edge, and attracts investors.
Discuss Other Important Relationships
Consider which other relationships are important to your business. If you have long-term supplier contracts, provide details about them in your marketing package. Potential buyers will be more likely to consider your company if you can clearly show where you source your materials, especially in the current turbulent market environment.
Determine whether you have any other positive relationships in your area. Do you collaborate with other businesses? Do you sponsor or participate in community events? Your company’s positioning in the local business environment is a crucial factor in determining its current and future value.
Emphasize Your Processes
Giving potential buyers an insight into how your company works is a good idea, especially if your processes are efficient. Show how you use technology to reduce your admin burden and streamline basic processes. Make sure potential buyers understand that your systems are robust and that you’re not fully reliant on one individual.
Demonstrate how your business can continue without you or other key employees and how you will make sure that the transition process is smooth. If you have business interruption or key man insurance, highlight how this reduces your company’s risk.
Seek Professional Help
At first glance, putting together a marketing document for potential buyers seems simple. But as you can see, financial information about your company isn’t the only thing that counts. Buyers also want to know whether there is potential for growth, what professional relationships you have, and whether you have any assets like intellectual property.
Don’t hesitate to reach out to mergers and acquisitions specialists. At ASA Ventures Group, we have extensive experience helping companies to achieve advantageous sales. We will start by auditing your company to determine what its strongest features are. Then, we’ll put together information that reflects the value your business brings to your community and potential acquirers.
Making your company stand out from others in your industry is a crucial element in your selling a business checklist. You have to prove that your product or service is unique and that it will remain desirable in the future. Get in touch with us at ASA Ventures Group and ask to speak to one of our advisors. We’ll be delighted to help you find the most suitable buyer for your company.
