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When business owners are preparing to sell their businesses, there are many ways they can make themselves attractive to buyers. As we represent many current and new business owners in Colorado, we have compiled the top five ways sellers can make themselves attractive to buyers. In Part 2 of our series we will focus on ‘Culture.’ To read the full series, click here. 

When a buyer is looking to buy a business he/she wants his/her culture and beliefs to align with the culture and beliefs of the owner. Buyers look to see themselves in  the owner. 

Why is this important to a buyer? For one, a buyer that can identify with  the owner can visualize him/herself taking over the business. This also makes for an  easier transition. The current employees and vendors of the business will likely be  happier in the transition if the buyer has a similar management style to their current owner.  Ultimately, a business is going to be more attractive to a buyer if the buyer can  visualize an easy transition into ownership.

In our next issue we will explore the next important way a seller can become more attractive to a buyer: industry. Our next issue will be posted on Wednesday. To receive our newsletter with ongoing information for both buyers and sellers of businesses, click here.

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 Selling a business is a complicated manner. If you have additional questions, please contact one of our Colorado business brokers at 720.259.5099 or email us. You can also read more about our seller services at this link. 

When business owners are preparing to sell their businesses, there are many ways they can make themselves attractive to buyers. As we represent many current and new business owners in Colorado, we have compiled the top five ways sellers can make themselves attractive to buyers.

• Part 1: Cash Flow
• Part 2: Organizational Structure
• Part 3: Reputation
• Part 4: Culture
• Part 5: Industry

The New Year brings many resolutions; one of the top every year however is change of career. To some that may mean changing a job, but to others it may mean entering a new business or becoming an entrepreneur for the first time. As we represent many current and new business owners in Colorado, we have compiled the top five things every individual should know before they buy a business.

1. Determine what you are looking for: Searching for a business that ‘cash flows’ and is ‘growing’ is a pretty difficult process. Short of interviewing thousands of business owners there is no way to determine which businesses fit these criteria. Start with a more concrete qualifier instead. Do you want a business with high profitability? Low overhead? Established staff? Brick and mortar location?
2. Narrow your search: Now that you have your determinants, research specific industries that you are interested in and compare them to your qualification requirements. If you want low overhead and a home based business, a restaurant probably isn’t for you.
3. Do some research: Read up on your target industries; know what typical industry statistics are when it comes to profitability, overhead, and staffing.
4. Hire a broker: Yes, we are partial on this one but it’s true. Just like you are an expert in your field, business intermediaries are experts in buying and selling businesses. A broker can provide you invaluable knowledge on current sales trends, businesses that are available for sale, and even find you businesses that are not yet on the market. 
5. Stick to your gut: You can spend years (yes, years) researching different opportunities. Stop wasting time looking at businesses that don’t fit your qualifications, if something doesn’t feel right from the start – trust your instinct. Say no, and move on.

Buying a business is a complicated manner. If you have additional questions, please contact one of our Colorado business brokers at 720.259.5099 or email us. You can also read more about our buyer services at this link.