Founding Attorney
People are retiring by the tens of thousands, especially in New Jersey. According to FocusNJ.org, the Garden State has an aging workforce, with 27% of workers over the age of 55. With so many people exiting the workforce, selling a small business can be complicated.
If you are among the thousands of New Jersey residents nearing retirement and you happen to own a small business, navigating your next chapter can be especially tricky. Why? Because, like most business owners, roughly 80 to 90% of your net worth is likely tied up in your company.
The good news is that you can make your business more appealing to prospective buyers by familiarizing yourself with the latest trends in the New Jersey market. Here’s what you need to know.
New Jersey Business Sales Trends to Watch
Understanding and embracing the trends below is essential for maximizing the value and appeal of your business in the New Jersey market. Specifically, you should:
Adapt to Technological Advances
The integration of technology into every aspect of business operations is not new, but its pace has accelerated significantly in recent years. For businesses looking to sell, demonstrating a robust digital infrastructure can draw in potential buyers.
Even if your business isn’t tech-centric, you should ensure at the very least that it is modernized. This means replacing antiquated paper logs or unusual inventory systems with standardized processes. By doing so, you can minimize the learning curve and make your company a more intriguing purchase option for younger buyers.
Increase Your Focus on Sustainability
Sustainability has become a buzzword across all industries, and your business is no exception. Buyers are increasingly interested in companies that demonstrate a commitment to eco-friendly or green practices.
However, there is no need to go overboard. Taking a few simple steps like reducing waste and energy consumption can go a long way in appealing to investors. For example, you could switch to non-toxic cleaners or install solar panels to decrease your utility costs. Be strategic here to ensure that you get a strong return on your investments.
Emphasize Your Value Proposition
Play to your company’s strengths and unique value proposition. This can be a patented product, a hands-on approach to customer service, or a strong name that resonates with the community.
The service sector has shown remarkable resilience and growth potential. If you own a service-related business, make sure to use these trends to your advantage.
Take steps to personalize your services and enhance the consumer experience. The goal is to position your company as a modern brand with staying power and resilience.
Stay Apprised of Regulatory Changes
No one wants to inherit a business with compliance issues or regulatory challenges. Ensuring that your insurance, licenses, and other compliance-related aspects are up to date will help avoid any transnational issues.
Keep detailed records of licenses and insurance policies. If you have faced any regulatory issues in the past, maintain documents explaining the incident and how you resolved it. The goal is to give potential buyers peace of mind as they perform due diligence about your company.
Navigate the Sale of Your Business With Expert Help
If you are planning to sell your business, bringing in expert support is vital. An experienced team of real estate attorneys can assist with planning the transaction and protecting your bottom line.
Have questions about selling or purchasing a business, estate planning, or high-value real estate transactions? Connect with Merlino & Gonzalez. We have law offices in Staten Island, NY, and East Brunswick, NJ. Our team provides estate planning, trust administration, real estate, and elder law services.
Contact us today, and let our team keep you on the right path!