If you are planning to sell your business, you would no doubt like to try and maximise your selling price. We will explore this over a series of short articles.
Firstly, it is generally best to start planning for the sale some years before the actual sale. Unfortunately, however, life circumstances can often force you to put your business on the market at short notice.
As business value is mainly linked to business returns and business risk, you should work at maximising business return and minimising risk. One way to minimise riks is to ensure that the business has a good spread of customers. Ideally no single customer should account for a high portion of your business sales. If the business is dependent on a small number of customers you may need to work at expanding the customer base. In the lead up to the sale, you could implement a marketing campaign aimed at bringing in new customers.
This should help to reduce the dependency on your larger customers, reduce the business risk and improve the likely selling price of your business.
View more suggestions on preparing your business for sale.