Founding Attorney
One of the main benefits of creating a successful business in New York is that you can get value from it one last time if you sell it. This won’t work for every business. But if you have the type of business where you can successfully pass on products or services to another party, then you can make money from a sale.
Since this is your final chance to earn money from your business, you want to get as much for the sale as possible. Consider these tips for improving the value of that business before the sale takes place.
Shore Up Your Supply Chain
When someone purchases a business, it is often because they don’t want to start from scratch. This means that they don’t want to have to reach out and find new suppliers or rewrite contracts with current suppliers. Contact your suppliers and make sure that they will continue to provide the same services to the new owner that they provided for you.
Invest in Your Brand
Another way that the buyer can benefit from an already existing business is to continue to use the brand that you built up. Your brand distinguishes your business from others in the same industry, and you likely have long-term customers who are committed to the brand.
By investing in additional marketing and focusing on what makes your brand unique, you can make that a brand worth buying. A savvy buyer will see the value in continuing to improve on what you built rather than investing in rebranding.
Prevent Turnover
A big part of what makes any business successful is its employees. Most new owners would prefer to work with a team of employees who understand the business than have to train fresh new employees.
As you get close to selling, make extra effort to prevent turnover. You may need to offer more flexibility in hours or give raises, but this small cost may reward you with a higher sale value.
Address Inefficiencies
Almost all businesses build up inefficiencies over time. Typically, these inefficiencies are overlooked because the effort and cost involved in addressing them are higher than the benefits gained. However, this isn’t necessarily true when you are considering selling.
Inefficiencies won’t just lower the value of your business. They could also potentially prevent you from successfully selling or delay that sale by months or years. This represents a much more significant cost.
When addressing inefficiencies, keep in mind that these changes should be desirable to your current employees. You don’t want to make changes that drive away good employees.
Time Your Sale Carefully
Every business ebbs and flows. While you don’t have full control over when your business is the most profitable, you can likely determine when your financial records will look most enticing to a potential buyer.
This may mean you want to wait a bit longer to sell, or that you might need to sell a little earlier than intended. Being flexible with the timing of your sale can be worth it under the right conditions.
Similarly, try to make a push to increase sales right around when you are planning to sell. You can do this with a new advertising campaign or well-timed incentives.
This doesn’t mean you should be dishonest about your financial outlook. It just means buyers usually prefer to buy from businesses that are currently experiencing high profits, and it doesn’t hurt to put your best foot forward.
A Little Effort Can Earn You More Money
Every business is different, and what works for one business may not work for another. The best way to determine what is right for your business in Staten Island is by consulting with an experienced real estate lawyer.
At Merlino & Gonzalez, we take the time to understand your business, and we can determine the right path forward to protect your interests. With a little effort, you can ensure you make the most of your company’s sale. Contact us to schedule a consultation with us today.