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There are many reasons why business owners find themselves ready to sell. When the time comes, potential buyers want more than just the numbers. They want confidence. This means a business that runs smoothly and has predictable profits and reliability.
We are Business Funding Group LLC (BFG)—a loan packaging firm with decades of experience helping small businesses make financial moves. If it is time to exit your business, we could help you prepare for sale, shape buyer perceptions, and create demand. Contact us for a free call to discuss your business goals and see how we could support you.
Consistent Profits Matter
The profitability of your business is one main factor in why someone might want to buy it, so it is important to show a history of consistent profits. Make sure your books are well-kept, financial documents are organized, and unnecessary expenses are eliminated as much as possible.
Clear profitability could positively influence how buyers see your business and create demand when you prepare to sell.
Ensure Your Business Can Continue Without You
If you are selling a business, it needs to be able to run and thrive without you to ensure future success for the next owner. Building a reliable team and working toward operational continuity make your business even more attractive. Actionable things you can do before selling include:
- Training staff
- Building standard operating procedures
- Creating documentation explaining how everything works
- Updating client or vendor lists
This all helps shape positive buyer perceptions of your business and creates demand when you are planning to sell.
How To Leverage the Upcoming Generational Shift in Ownership
There are 72 million baby boomers in the U.S., and many in this generation own small businesses. The oldest boomers are nearing 80, and the youngest are approaching retirement age.
If this describes you, it is time to prepare. You do not need to sell tomorrow, but having a plan is a good idea. Preparation is key to ensure appreciation and demand amongst potential buyers when you sell your business. Being proactive is better than reactive, as it gives you more options—not to mention more negotiating power.
If you are an entrepreneur interested in expanding your business, the upcoming generational shift in business ownership is a great opportunity. A wave of business owners retiring and putting their profitable businesses for sale is coming.
Using SBA Loans to Your Advantage
The Small Business Administration (SBA) loan programs could help buyers finance an acquisition and instantly grow an investment or business with less risk and upfront cash than with conventional loans.
However, SBA loans are not only for buyers—they could also benefit sellers. Your buyer could use an SBA loan to finance the purchase so that they get advantageous terms that allow them to buy your business for its full value.
A business must meet certain criteria to qualify for an SBA loan, including cash flow, no unresolved legal or tax issues, and organized documents and systems. When planning to sell, ensuring your business meets the requirements for an SBA loan could support buyer demand and improve the perception of your business.
Marketing Shapes Buyer Perception and Demand
How potential buyers perceive your business makes a difference in their desire to purchase. Things like consistent branding, customer reviews, and growth potential could give buyers an idea of their future prospects if they buy your business. If you are preparing to sell your business, having a deliberate marketing strategy could create demand and enhance buyer perception.
Call BFG for Guidance on Preparing To Sell Your Business, Shaping Buyer Perceptions, and Creating Demand
If you are considering selling your business, we are here to help. Our team could help you prepare for sale, shape buyer perceptions, and create demand.
At BFG, we can discuss SBA loan requirements, help prepare your business for financing, and support you through closure and beyond. Contact us today or fill out our short application to start creating your exit plan.