“A ship in a harbour is safe, but that is not what ships are built for”
– John A. Shedd
Whether you are looking to sell your business or looking to raise funds to grow your business – planning and preparation is of utmost important.
We at Indiabizforsale.com have helped thousands of business owners, business buyers and investors in buying, selling and growing businesses as well as in investments and fund-raise for their businesses. By working closely with our clients and having closed numerous deals, we are in the best position to share with you the top 5 things you should start doing right away. Here are our top picks for you:
- Organise your Business Information: The first thing you must do is compile, assimilate and sort all the pieces of business information together and categorising them for easy access and retrieval. Make sure you have audited financial statements in place at least for the last 3 years (if applicable), put together your business policy documents, receipts, invoices, appointment letters, contracts, past deal documents, agreements, intellectual property documents, technology specifications, market research reports, and so on.
You will be surprised by how much time you will save when buyers actually start seeking documents and business information from you.
- Polish your Business Pitch: Did you know? For most business, the toughest question to answer is: “Why do you want to sell or raise funds for your business?” Communicate the answers honestly but intelligently and try to establish the fact that your business is a viable proposition to buy or invest into. A common misconception is that only profitable businesses are viable opportunities, but you will be surprised to know that there are many takers even for sick businesses with future potential. Know more about how to sell your sick business.
- Make Some Noise: This is a no-brainer. No one will invest in your business if they are unaware of such an opportunity in the market. You can reach out to your personal and professional networks, or post classified ads in newspapers, magazines, trade journals and directories. However, remember that by adopting these conventional approaches, maintaining confidentiality of yourself / your business might be at risk, and this might harm your business in the long run. The best option is to list your business opportunity with technology platforms that assure anonymity (such as Indiabizforsale.com – India’s most preferred network to buy, sell, fund and grow businesses).
- Hire a Consultant: If your business is in a niche industry, or if you are looking to sell your business urgently, hiring a consultant with good track record and credibility in your industry or related industries is a good option. It is often difficult to assess the credibility of a consultant. Getting references from your network as well as consulting multiple resources before choosing the right one is the best way to go.
- Qualify Inquiries: We have seen many businesses wasting their precious time on investors / buyers who are not really interested in their business (explorers). Not only does it slow-down the process, but also there’s a risk of critical information of your business reaching the wrong people. Qualify leads in terms of their interest in your business, and only share critical information if you think that the investor / buyer is serious about your business. You can also request to sign a Non-Disclosure agreement (NDA) before sharing sensitive information. Read NDA and 3 Other Deal Documents You Should Know About. Optimise the time you spend on a buyer by sharing information in a compact and step-by-step manner, and keep track of the discussion progress. Don’t be afraid to ask your own questions to get clarity about their interest.
Keeping the momentum high and maximising your reach is more important than anything else. At Indiabizforsale.com, we are committed to making deal-discovery a seamless experience for all. Stay tuned to our blog for more useful articles like this, and explore our website for more.