Surviving in the tough competition requires great effort and competence from the companies. If a particular company topples in the race then it is eventually showed a way-out. Other than shutting the company, the business owner does not have any other option as the company fails to captivate customers in the market. Business Failure can happen with every type of company, irrespective how big or old the company is.
Taxi4sure, Videocon Telecom and Channel V are some of the for-profit business organizations which met their doom owing to the rigorous competition. Taxi4sure, an online car rental business, had come with a good business idea but the organization failed to create its own mark because of the excessive competition and unplanned future strategy. On the other hand, Videocon Telecom, a small telecommunication company could not afloat in the tight market as the onset of Jio, the Indian mobile operator, adversely affected its business and thus, decreased its network users. While Channel V, an international music channel, was closed down due to the decreased viewership.
In the aforementioned examples of business failures, there are distinct reasons that lead to the cessation of the business entities. Keeping that in mind, the small companies should accordingly plan out their departure so that the sellability of their business would not be affected.
Important Things To Consider For Escalating The Selling Price
Selling the business is somewhat like selling ones own house. Ones home is usually embellished with showpieces, furniture and other interior adornments. Unlike the home, the office space cannot be decorated so elaborately, though, there are certain things that are must-haves in a company.
Similar to the Curb Appeal factor, there are certain strands which upscale or downscale the selling price of the business. In the context of selling a house, houses location, surroundings and additional facilities entice the buyers and thus, these factors together come under an umbrella term, Curb Appeal.
While in the office, employment policies, premium policies and customer satisfaction are some of the mandatory norms that exhibit a companys professionalism and, in turn, goodwill in the market. If a company does not constitute these underpinnings then it might be questioned on these by the visitors.
Aside from yearly profit, the buyers or visitors often scrutinize the office environment and workforce of the company. These two factors are common subjects to determine the growth prospects of a particular company.
A To-Do List For The Selling Businesses
While selling the business, there are a plethora of preparations that a businessman needs to do. For receiving a good price, it does not matter whether the company is small or large. The elements that are most important in the company valuation are financial reports, customer base and goodwill.
Failing to provide an apt report, the companys buying proposal can be denied and thus, good buyers would not consider buying the specific company.
Profit is a primary factor that the buyers check in a companys reports. Adding the financial reports of the last three months is essential as it ensures that the firm is a smooth-running business. More so, the buyers should have access to all auditing reports and tax returns so as to go an extra mile.
When a buyer decides to buy the company, he not only seeks the ownership of the business but also the employees working within it. Employees are indeed souls of the business and thus, should be committed to the organization, despite the change in the ownership of the business.
Customers are an important indicator of a companys background. Long customer rapports symbolize positive traits of the company whilst the shorter strength of the customers infers poor productivity and success of the company. Thus, it is vital to showcase good customer rapports to the buyers.
Follow these tips religiously in order to receive a good price for the business.