You can take steps to make your customer base more desirable to buyers. Focus your marketing efforts on areas and submarkets that are likely to produce stable, satisfied customers willing (and able) to pay good prices. Avoid adding low-priced new customers by avoiding marketing in areas likely to attract such customers. Deliver high quality, friendly services. Avoid transient areas. Increase prices on low-priced customers. Accept that the lost revenue from lost customers will be more than offset by better prices and a better customer base to sell.

Preparing a business for sale is not usually one of an entrepreneur or small business owner’s highest priorities. The complications of the day-to-day running of a business often keep business owners from effectively planning for the future. Nevertheless, most business owners ultimately have to confront the reality of needing to sell their business. Oftentimes, the need to sell is triggered by unforeseen circumstances, such as death or disability, a divorce or other circumstances which may put extra pressure on the situation and make effective planning and decisions very difficult. Some basic steps taken well in advance will help facilitate a … Read more

Most sellers are aware that that there are “rules of thumb” or industry standards that suggest that businesses in certain industries should sell for a specific multiple of revenues or cash flows. Many times sellers are disappointed that there business does not generate offers at or near the “rules of thumb.” This can happen for a variety of reasons – you can be selling at an inopportune time or, for a variety of reasons, your business may not be attractive to the buyers who are willing to pay top dollar. One important issue is that there are two general types … Read more