Blog Search

  • Home
  • Blog & News
  • How effective business systems can ready your business for sale
How effective business systems can ready your business for sale

How effective business systems can ready your business for sale

People sell their businesses for many reasons. Fatigue from too many years in the game is one of the most common. They might also choose to sell their business when they reach retirement age or fall ill and cannot work in it any more. Sometimes, increased competition drives them out of the market. Some business owners start their businesses with a planned sale in mind. Whatever your reasons, nothing can prepare you for the setback when you find that you can’t actually sell your business. That’s why it’s important to understand the factors that prevent your business from attracting buyers and how to bounce back and grow your business into an Asset of Value.

Factors that stall a sale

Buyers usually hesitate to close deals because they don’t see the value in the business they’re being offered. Many factors contribute to this, but the main ones are:

  1. The business is too dependent on the owner – If a business relies on its owner to operate at its best, it’s not an attractive purchase for buyers because they cannot buy the owner with the business. The same can be said if the business is too dependent on one employee, client or supplier.

  2. Buyers can’t identify any growth opportunities – Buyers are attracted to the future potential of the business and not just what the business can achieve now. In this case, value is shown by presenting convincing growth opportunities. These could be new locations for the business, other companies the business can buy out or new markets that the business can unlock. Anything which proves that the growth of the business won’t slow down or stop.  

  3. The business is too similar to its competitors – Businesses that aren’t differentiated enough can only compete on price. The lower the price, the less cash is left over to grow the business.  

  4. There isn’t enough free cash – Free cash is what’s left behind after working capital is spent. It’s a good measure of a business’s performance because it shows stakeholders and potential buyers how much money the business can dedicate towards growth.

  5. Legal issues – If you or your business are tied up in any legal disputes that could affect the business financially, there’s a slim chance of selling the business before all the legal issues are resolved.

Aurik nurtures your business for a sale

We work hand-in-hand with you to grow your business into an Asset of Value through careful analysis, focused goal-setting and sound business systems. A partnership with Aurik ensures that your business has a firm foundation from which to grow and expand.

We will collaborate with you and identify who your ideal customer is and how best to position your business so you can serve them optimally. This is supported by targeted and persistent marketing strategies and airtight business systems.

Aurik works with you to establish long-term value in your business. We want your business’s true value to show clearly in its processes, structures and operations – not in who owns it.

Would you like to have your pick of buyers when you’re ready to sell? Aurik can assist. Let us work with you to build your business into an Asset of Value and devise an effective exit strategy.

Tags: Growing business value, Growing, Business Systems, Business Exit, Exit strategy

Three sales propositions to speed up deals in a tough economy

Three sales propositions to speed up deals in a tough economy

In today's tough economic environment it is taking longer and longer to close deals. To speed up this process, you need three...

Read more

Start with the end in mind

Start with the end in mind

Plans don’t always work out – that’s life. Starting a business is no different, especially when you need to work closely...

Read more

Negotiating the family business deal

Negotiating the family business deal

76% of family businesses don't survive through a second generation. It's a scary statistic and one that affects many private...

Read more

Building a pricing strategy to grow your business

Building a pricing strategy to grow your business

“The pricing game is emotional”… this is how a tweet from a listener began, and he’s right. A challenge to your pricing feels...

Read more

NEXT-LEVEL GROWTH: WHAT IT IS & HOW TO GET IT RIGHT

NEXT-LEVEL GROWTH: WHAT IT IS & HOW TO GET IT RIGHT

How often have you heard the terms "Next-level growth" or "Getting to the next level" bandied about? It's become more business...

Read more

Our past determines our approach to the SA economy

Our past determines our approach to the SA economy

Carl Jung said “We are trapped by the images of our past”. Meaning that our past experiences affect our perception of reality....

Read more

White Knights, Silver Bullets & False Prophets

White Knights, Silver Bullets & False Prophets

The exhaustion of running a business can make us vulnerable to the allure of a cure-all solution. But if it sounds too good...

Read more

Help Pavlo to #NameTheBook
namethebook

Help Pavlo to #NameTheBook

Pavlo Phitidis has just completed a book about the ideas, thoughts and more valuably, his direct experience in building successful...

Read more

How to build a retail empire very, very slowly

How to build a retail empire very, very slowly

Retail is notoriously difficult, but if you have a great product targeting consumers - you need to get it right. Pavlo Phitidis...

Read more

Immigrating talent for a quick but enduring economic boom

Immigrating talent for a quick but enduring economic boom

If we can attract 100 000 STEM qualified immigrants, we can not only bridge the skills gap that is stagnating our growth,...

Read more

EMIGRATION: Its cost and opportunity to a business owner
Business Growth

EMIGRATION: Its cost and opportunity to a business owner

Over the last month, I have had two same, but different meetings with two different business owners. They were the same because...

Read more

Creating opportunities that didn’t exist before
Growing business value Business Growth

Creating opportunities that didn’t exist before

Creating economy is a key entrepreneurial skill. Its something that is entirely possible irrespective of the environment...

Read more

Why waiting to act becomes the only act and how to ‘snap’ the bad habit
Asset of Value

Why waiting to act becomes the only act and how to ‘snap’ the bad habit

With the South African elections now come and gone, it feels like we have passed a milestone that we were all holding our...

Read more

Winning mindsets turning thought into action and action into results
Building your Business Business Growth

Winning mindsets turning thought into action and action into results

The distinguishing feature between business owners who crack it and those who drift along, and fail… is mindset.

Read more

How to structure the offer of a Management Buy Out
Business Succession Succession planning

How to structure the offer of a Management Buy Out

A hardworking, smart professional presented me with a scenario on an offer she had received to conclude a management buy-out. She...

Read more

Position your business for success and maximum impact
Positioning your Business Business Growth

Position your business for success and maximum impact

Wing Chun Kung Fu, a style of martial arts, requires that you have a secure footing on the ground in all its defensive and...

Read more

Building a business is like sailing a ship
Asset of Value Building your Business

Building a business is like sailing a ship

Analogies are very useful to simplify thinking and action. As a #businessowner, building a #business in a challenging environment...

Read more

What’s your business worth?
Business Growth

What’s your business worth?

Firstly, this only matters for 5.4% of all #businessowners since 94.6% of all business started fail to sell. They close at...

Read more

Creating wealth through your business
Business Growth Wealth Creation

Creating wealth through your business

Wealth describes an abundance of a desirable thing. It could be friendship, love, money, access to a foodstuff and so on....

Read more

Developing an effective marketing strategy
Business Growth Marketing strategy

Developing an effective marketing strategy

If you can’t and don’t get potential customers to know that you exist, they don’t care and you die. They don’t care because...

Read more

Build resilience into your business to take control of your future
Business Growth Strategic Planning

Build resilience into your business to take control of your future

We often hear about being resilient to thrive and survive in business today. Why does this matter and what does it mean?

Read more

Escaping the project revenue trap and why you should do it
Building your Business

Escaping the project revenue trap and why you should do it

Recently, at an Asset of Value event in Johannesburg, South Africa, a room bristling with 58 business owners that collectively...

Read more

What is your business building approach to 2019: Chose one of 3 strategies
The Money Show Business Strategy

What is your business building approach to 2019: Chose one of 3 strategies

2018 has been an exhausting year. Taking time off is important, so long as you don’t break the momentum of your business....

Read more

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures
The Money Show

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

Collaboration is a key element for building your business into a successful Asset of Value. But, not every joint venture...

Read more