Thinking of selling your business? Then time is of the essence, says Business Advisor, Rupert Beazley.
“Firstly, give yourself the time to make sure everything’s in the best possible shape. Don’t rush it, otherwise you won’t realise the maximum return. Patience is a virtue in this game! Secondly, think about YOUR role in the operation. Are you doing all the day-to-day stuff? Does the success of the business hinge on you and your efforts? That’s going to matter to the new owner, so the way you present that kind of information is important.“
“Also, have a think whether the business is a lifestyle business, or an asset. The latter is probably preferable to a new owner – the thought of having to work long hours in the business might not be that appealing!”
“The more time you have to prepare, the more value there is to be had. I can’t stress that enough! A good exit plan will set out steps to increase the value of your business, help you attract prospective buyers, and get the best price possible.”
Having owned and operated several successful small businesses himself (as well as having taken up significant roles in the corporate sector), Rupert appreciates the challenges faced by SMEs. Most notably he bought into a grounds maintenance franchise, building it from a staff of one, to a team of 25 with a turnover of over £1 million (eventually successfully selling the business).
Rupert believes it was that experience that gave him a true understanding of where an owner might want to take their business and the skills to help them get there.
“I’ve got one client who wants more freedom to go on holiday more often, and another who wants more focus to growing the business – so they’ve very different goals, which shows that I need to motivate different types of people every day!”, explains Rupert.
“But that’s what gives CMC Partners the edge – we’ve all been there. We’ve sold our own businesses. We’re not teaching from a textbook.
“So we know first-hand what it’s like operating a business with cash flow problems; invoices not being paid quickly enough; whilst trying to keep your head above water. We’ve experienced it for ourselves, and come out the other side.”
“I always emphasise the importance of keeping your sales pipeline as active as possible, because new business is key. Keeping your current clients is obviously important, but you’ll struggle to grow if you don’t get new ones. Plus, you don’t want to rely too heavily on a single client. Spread the risk because what happens if that one relationship goes wrong?”
“When I’ve been working with an owner for some time, it’s always a good moment when you can see a change in their thinking. I have a client where the owners are now acting like directors rather than managers. They are now not doing everything themselves. It’s brilliant as its helping to secure their future.”
“If I could give all ‘owner managers’ a piece of advice, it would be to look at the bigger picture. It is where we can come in, by helping you to understand where you are, where you want to go and how to get there. Unlocking the potential in your business will secure your future.”
Think your business could do with some independent advice?
Find out for yourself and get in touch today to arrange an initial free meeting. Contact Rupert Beazley.