“7 Ways To Improve Small Business Sale Price”

Small Business Coaching - Reliable Sales Plan


One Houston small business owner quipped: “I don’t want to think of selling my business. I know the economy isn’t what it used to be in the good days. We aren’t having the same sales but I never think of selling.” 

I’ve heard this common theme from many businesses today. And I think I know where it stems from. 

It’s the fear of not knowing what to do after you sell the business. It’s the fear of losing your passion. It’s the fear of the unknown that follows. Or a different reason. I don’t know. You decide.

That’s why I introduced a 90-minute results program called “Erasing Overwhelm From The Economy.” And it’s free. I specialize in uncovering profits from places where business owners may not look. It will help boost your business value – from day one.

Remember Bill Gates, the business magnate? He earned more by selling Microsoft–more than he could have earned by running it. And many others followed him.  

Here are 7 ways to improve your sticker price for your business.

1) Prepare Current Business Plan

Business plans help predict cash flow so you make a profit. It helps estimate your working capital. And it helps measure how soon you will be able to repay debt. Updates show if your business model changed.

2) Forecast Sales For Profit

Plan your sales each month. It will help you cover your salary and any costs to make a profit.

3) Keep Cash Flow Positive

Collect payments, when it’s time to collect. Get customers to pay on time. Offer benefits if they pay early. Extend time through new terms to pay sellers. Take these steps and your bank account will thank you.

4) Measure Effectiveness of Strategy

Set goals and measurements according to your business strategy. 

Keep short-term goals clear. I mean goals for 2 years. Midterm goals go from 2 to 5 years. And long-term goals go beyond 5 years. 

Work backwards from your long-term goals. Measure KPIs to see what you need to do this week, this month, this quarter and this year.

5) Remove Waste

Remove waste from time, materials and movement. It will improve productivity. And lower your costs to produce goods. So, you will overcome competitors–even in a price war.

6) Identify Leaders For Takeover

If you plan to leave the business, someone has to take over. It’s surprising how many businesses haven’t thought through this step. Find leaders early. Focus on those who earn respect from employees. It will make it easy for a smooth transition.

7) Setup Overall Exit Plan

Use one of three methods to find the value of the business–cash flow, market or assets. Then boost business value quickly.

Buyers can come from inside or outside your business. Either way set a goal so you can move towards it for a successful sale.

Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to discover how? Call 281.410.5375 and speak to your Profitability Coach Houston

© 2012-2021 Business Unit Execution LLC. Best Small Business Coaching in Houston • Management Consultant  •  All Rights Reserved  • business coach near me
Sugar Land, Texas 77498