Selling Your Business
December 17, 2013 at 9:23 PM
Over the years I’ve worked with a number of clients who have wanted to sell their business but weren’t sure how to go about it.
I have found that the best way to get the best price for selling a business is to write a detailed business plan so that any potential buyer is able to clearly see the state of your business and what it is made up of.
It has been my experience that clients usually achieve a higher price than that calculated by a registered business valuer.
According to buyer feedback, the reason that people are willing to pay more is because of transparency and context.
They can review the flow-charted processes that show how any new operator might be able to run your business smoothly.
They are able to compare the profit calculated in your product and service costings to the DaltonPlan® benchmarks for that industry to gauge the state of the financial performance of your business.
No-one likes surprises when buying a business and just going over a set of figures in an end-of-year Profit and Loss Statement just doesn’t cut it.
The business plan creates a great deal of transparency giving the buyer the confidence that your business is a good business and worth buying before someone else does. Good businesses are difficult to come by.
There are a number of businesses for sale but I have found that very few are actually worth getting involved with.
To learn more about what to do when you sell your business click here.
By Simone Magner, Director, Simone Magner Photography Ltd
021 057 0370
Simone Magner Photography Studio is located in Whakatane, Eastern Bay Plenty offering professional, high quality corporate/commercial/event photography for business organisations and business executives.
I enjoy working closely with my clients to achieve just the right image to make an impact in the desired market audience.
I like to ensure client comfort, believing ease in front of the lens is essential to achieve the desired image.
I created my business in 2011 and I did the initial business plan myself.
Time has showed me that things were not as I imagined they would be.
For instance, I mistook marketing for advertising and I thought I had to outsource this aspect of the business.
I know now that it is something I can very well do myself based on a growing strategy that fits my work ethic and my passion for delivering high quality products and services.
I reached a stage this year where I was searching for somebody who was experienced in business to give me new insight, help me grow and tell me how to expand the business.
Dean Dalton and the DaltonPlan Business Plan was recommended to me.
We spent two intensive days working together. I think I also needed to know if my business venture was a viable one.
I'm using the DaltonPlan® business benchmarks.
To confidently work within the benchmarks I had to better understand my products and start evaluating what I'm selling.
Photography is an art and doing business with art requires confidence; a good knowledge of the value of my service is essential.
Together, Dean and I developed a marketing strategy based on getting the maximum exposure along with a unique service from the minimum investment.
I've started doing corporate gifts that are virtually at no cost to me but are of great value for my clients and good publicity.
I know where I'm sitting in the market place now and I've got a much better vision of what I need to do and the steps I need to take to grow my business.
I also gained the confidence to say no to jobs that don't fit with what I know is best for myself and the DaltonPlan® business benchmarks.
The support from Dean has been excellent and he gave me a lot of self-confidence with how to run my business better.
I'm proud of what I'm doing, I now know my strengths and I’m using them to grow my business.