I chat with various business owners every day and hear of a variety of businesses in nearly every imaginable business sector. The businesses that give the best first impression are those that appear well organized, are relatively clean, and where the business owner has books and records readily available. This gives me an indication that the business is most likely well run and that the owner has given some thought and preparation to the idea of selling his/her business.
What is the first thing people do when they decide to sell their car? Many take the car and have it professionally detailed. Those that don’t have it professionally detailed at least either take it to the car wash for a wash and wax, or spend the time and energy to wash and wax it themselves. Will anyone pay top dollar for a car with layers of dirt and bird droppings crusted into the paint? Not likely.
What do people do when they are going to sell their house? Many times they will paint the house, do a bit of landscaping and clean things up so the house shows well. Will anyone pay top dollar for a house that is dirty and cluttered with foot high weeds in the lawn? Not likely.
When it comes to business, the psychology is pretty much the same. I have seen manufacturing shops so clean you could eat off the floor. And, I have seen shops so filthy I didn’t want to sit, lean against, or touch anything. Interestingly enough it seems to be the latter where the business owners insist their business should command top dollar.
A buyer is not going to pay top dollar for a business that appears dirty, cluttered, disorganized and has either no books and records or records that make little to no sense.
The bottom line is that as a business owner, investing a few thousand dollars to have a professional work with you in preparing your business for sale will in most cases give you tens of thousands of dollars or more in return.
Contributor:
Cheryl's a restaurant business broker, over 25 years in the bar and restaurant industry coupled with a J.D. Cheryl works tirelessly to create successful strategies and effective negotiations for those who wish to purchase a new or sell an existing bar, restaurant, cafe, or night club. 415-309-2722
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