Preparing to Sell Your Business - Housekeeping
In the last issue (#38), we discussed Preparing to Sell Your Business – Writing the Buyer’s Business Plan. This issue will discuss Preparing to Sell Your Business – Housekeeping.
" You never get a second chance to make a good first impression." Will Rogers
Preparing to Sell Your Business - Housekeeping
We’ve all heard these two sayings: “First impressions are lasting impressions” and “You never get a second chance to make a first impression.”
When a prospective buyer visits your facility and it is a mess, it makes a very negative impression and the buyer will expect to see messes in all aspects of the business. On the other hand, if a buyer sees a neat, clean and well-organized business, it creates a very positive first impression. To the buyer, it demonstrates pride of ownership on your behalf and he/she can project their future pride in ownership of your business, which is one of the strongest motivations for prospective buyers.
"First impressions are lasting impressions"
That’s why a little housekeeping is a necessity to prepare for the sale of your business. It is very important to get off to a good start with a serious prospective buyer. Selling a business is always tough, but avoiding a negative first impression can be accomplished with a little effort.
Eliminate clutter
Residential real estate agents will always tell homeowners that they need to eliminate the clutter in their home. The same goes for selling your business – eliminate the clutter. It’s not as hard as it sounds and here’s my favorite way: the “Four Box method” which forces you to make a decision on each item of clutter you identify. Find three boxes and a large trash can and label the boxes, “Put Away”, “Give Away/Sell” and “Storage.” Pitch what you can in the trash can and choose one of the three boxes for things that must be retained. If items are too large for boxes, make a list according to the four categories. Then assign responsibility for disposition of the items that end up in boxes and on your “too large” lists. Because so many of us don’t even notice clutter (I’m guilty!!) on a day-to-day basis, consider asking an independent, third-party “clean freak” to accompany you on the trip through your facility to help identify the clutter.
Sell obsolete assets and inventory before selling the business
In previous newsletters, we suggested identifying non-productive assets such as old or obsolete inventory, and excess furniture and equipment and selling them off before putting the business up for sale. Then spruce up, clean and organize the remaining inventory and assets that are to be sold as part of the ongoing business.
Remove personal assets from your business' facility
Remove all assets that are personal in nature that you want to retain, including business mementos. If your first dollar earned in the business is framed on the wall of your office, or your first business sign is displayed (or whatever type of business mementos you have that you want to keep), rest assured the buyer will want those items. Rather than fight with a buyer over them, just remove them from your office and take them home before putting the business on the market.
Clean, paint, repair and replace
Do some housekeeping. Clean the facility inside and out. Consider hiring a commercial cleaning business for a one-time visit and specify what you want to be accomplished. Repair any sign problems and replace lights and stained ceiling tiles. Consider repainting the facility inside and out (if appropriate). Clean the restrooms. If they are really bad, consider replacing toilets and sinks. Make sure the towel dispensers are working properly. When necessary, consider painting or touching up areas that need attention. Consider having some exterior landscaping clean-up performed (if applicable).
Consider upgrading your technology
And finally, consider upgrading …..
