There is always more you can do to maximize your South Florida business sale and profits. Your sale depends on many factors, but the one stands out in effectiveness is creating a growth plan.
A well thought-out growth plan will communicate the benefits of buying your business. This strategy will help you attract more potential buyers who are willing to pay more after realizing the potential profits from your business.
A Growth Plan Can Work to Optimize Your Business Sale
Most potential buyers are not only focused on the current and past cash flow, but also equally interested to understand the growth opportunity of your business. The growth potential of your business plays a major role in establishing the value of your business.
Creating a Growth Plan
To bet the highest price possible, a seller needs to have a tactical growth plan that delineates the growth opportunity that a buyer can implement to increase sales and profits. It is important that the plan be realistic, clearly defined, and in writing. Your growth plan can serve as a talking point during initial buyer meetings. Ideally, the plan should be in the process of implementation and actually demonstrating growth; however, a well thought-out plan is also effective.
The goal of the growth plan is to describe realistic opportunities for growth that specifically illustrate the reasons how cash flow and profitability will grow after the business is acquired. This can translate into higher value.
Developing a Growth Plan: What to Consider
Organizing a growth plan can be an overwhelming task. To start, divide your growth potential into three segments: expansion, customers & products, and efficiency. Ask yourself the following questions:
Expansion
- Are there additional markets, products, or vertical channels a new owner could pursue?
- Is there an opportunity to expand the geographic service area?
- Can growth be achieved by increasing manufacturing capacity or adding satellite locations?
- Are there online strategies available for growth, including a new or updated website, website optimization, SEO or Google advertising?
- Are their opportunities to expand by acquisition?
- Would a new location make a more efficient work flow or to cut the cost of rent?
- Can your technology be licensed?
New Customers & Products
- Are there opportunities to cross-sell or upsell customers?
- Are there opportunities to develop new customers? If so, how would this be accomplished?
- Would a rebranding help evaluate the image of the company to draw in additional new customers?
- Would an e-mail program with high quality images directed at quality customers (such as Constant Contact), be helpful?
- Will demand for your product or service increase as population and segments grow?
Efficiency
- Are there areas to explore that could decrease operating costs?
- Can increased profits be achieved with more efficient tools or automation?
- Where are the highest profit margins and can those segments be expanded?
- Would additional hires keep growth?
- Would streamlining the workforce be more beneficial?
- Would the company benefit from workforce training and education?
It’s a given that you want potential buyers to offer the highest price possible; but to achieve that they need to realize the value and potential of your South Florida business. Creating a growth plan can help them see the full value if buying your company. Contact Dolan Sales for more expert advice on selling your South Florida business.