Building a Saleable Business
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Mar 28,2019
- 9 Mins Read
Managing the business is an intimidating task as the entrepreneur always has to ensure that operations are going well within budget. Similar to a household, a small company runs on a tight budget and ensures fulfilling its employees’ needs via salary and other rewards apart from managing all other expenses. The entrepreneur, thus, binds everything together and helms the company. While directing the company, there are numerous problems that come in the way.
Further, the entrepreneur needs to make sure that the company is moving at the same pace as its competitors since survival is difficult in a dynamic business ecosystem.
Financial Health doesn’t always Indicate the Right Time for Sale
Setting up a company requires oodles of hard work and strategizing. After creating a reputation in the market, it becomes the entrepreneur’s call as to what to do with the business—expanding the business, choosing retirement by hiving off the company or bringing other partners on board.
Originally, the decision of selling off the venture is not dependent on the company’s revenue or performance. The entrepreneurial decisions are arbitrary actions which are taken considering the market, business performance and company’s requirement.
If a businessman thinks of selling the business, then he needs to ensure that the company gets the right worth. For that, the company needs to become a saleable business.
- Revenue Generation
The first thing that intrigues buyers in a particular company is the spiking revenue. Actually, a business’s revenue shows the true picture of the company and hence, helps attract good buyers. For making the business saleable, the entrepreneur should exhibit the amount of revenue-stream from each customer as it shows the financial health of the business.
These figures further allure the buyers to purchase the business and subsequently, increase the selling price of the business.
- Uniform Profit
Another thing that the buyers notice is the profitability of the business. If a businessman plans to sell the venture, then he needs to strategize things beforehand such as displaying high profits, consistency in the profits and ensuring business growth.
In order to earn large chunks of profits, the business owner should map out business strategy and try moving ahead of the competitors. By surviving rigorous competition, the company will become a survivor and will also behandle the competition better.
- Physical Assets of the Business
In the beginning, the businessmen don’t splurge money on procuring brand new products. They either buy second-hand products or obtain leased commodities that they require. During the initial days of the business, buying second-hand commodities or leased commodities are the right options. However, while preparing to sell the business, it is important to have durable purchased physical assets as fixed assets also included when valuing the business.
A businessman should follow the aforementioned strategies so as to increase the sellability of the business.
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