By Mark Tepper, the president of Strategic Wealth Partners and an EO Cleveland member
Growth, growth, growth. It’s the six-letter word that means everything when it comes to selling your business for top dollar.
Needless to say, buyers aren’t looking for dead-end companies that have already achieved their top tier of success and whose big ideas are tapped out. You’re going to need to prove to your buyer that your company has room to grow—and lots of it.
Here are five ways you can show your buyer that your company has a path to growth in its industry:
Develop New Products
Focus on developing a new product or line of products. This will prove that your company is innovative, forward thinking, and interested in new ways of generating cash flow in the long term. Can you also prove that this new product will answer an unmet need in your market? Perfect.
Diversifying your offerings often goes hand in hand with developing new products. What other services or products does your clientele regularly purchase? Is there a natural way to wrap those items into your business’s offerings? For example, do your clients buy their paint from you but their paintbrushes from someone else? If so, it’s time to contact paintbrush manufacturers.
Expand into New Markets
Keep a pulse on the economy and nationwide cultural trends to discover untapped markets in your field. Perhaps there’s a way you can tweak your offerings to appeal to retirees or teens. Look deeper and you’re sure to find a whole new market to corner.
Plan for Acquisitions
Have you had your eye on a company that would merge perfectly with yours? Set up a game plan for the future acquisition of that company (or a similar one) and share it with your buyer. If you’re not sold on the prospect of integrating a new company with your own, consider setting up an alliance with a complementary company to build mutual sales instead.
According to Inc., only about one percent of small businesses export overseas. Although it might seem daunting to penetrate international markets—and certainly takes commitment and planning—the payoff can be monumental and would certainly grab your potential buyer’s attention.