The Secret on How to Get the Very Best Price for Your Business
Plan then invest in strategies and professional advice to maximise your business’ goodwill.
Why? There are 2 compelling reasons:
- What you spend on increasing the Goodwill value of your business is 100% tax deductible.
- What you get paid for your Goodwill when you sell your business is 100% tax free.
Is this not the best Win-Win in business? Tax-deductible expenses and tax-free capital gain!
How do you increase the value of your Goodwill?
Today I’ll give you ‘The What’. These are 9 key areas of significant value to make a business more desirable and hence more valuable. (‘The How’ are trade secrets that we have built up over many years and I’m not about to give them all away here.)
- A professional operations manual. Think of the standard a franchise business would need.
- A database of every client or customer you have ever had.
- Monthly financial projections. Project at least 12 months but see if you can project 24-36 months into the future. Make sure you include rock solid assumptions.
- Historical financial data. Have your KPIs presented in an easy to read and understand format.
- A business plan. This supports your financial projections.
- Product and/or a services inventory. Cover everything you sell.
- Comprehensive information covering all your IP; how and why it is unique to your business.
- Stunning website. Make it better than your competitors.
- Continual social media exposure, if appropriate.
Few businesses I see for sale or where the owner is thinking of going to market can tick off all 9 boxes.
To tick all 9 boxes costs money and takes time. If you want to sell in 12 months’ time, you’d better start now. If you want to sell in 6 months’ time, you’ll need to scramble immediately.
For most businesses this is a 24 month programme.
The 9 key areas are ‘The What’. If you want to know ‘The How’, contact me, Jamie Tulloch, I’d love to help you out!
- By phone: 0800 11 33 99
- By email: firstname.lastname@example.org
- Or Skype me: e3jamie