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How sellable is your business?

By Gary  & Nancy Hallett

You’ve worked hard to build your business, sacrificing along the way to make sure your employees have a steady, reliable place to work, with hopefully enough left for your own family every week.

As the years go by, your thoughts turn toward the overall value of your business and how much you’ll have left for retirement after the business is sold. Will it be enough? What can I do to make my business more valuable?

These are great questions for any business owner to ask, regardless of where you’re at in the business life cycle. If you own a business, you want to position it to be sellable at any time and to sell it for the maximum amount of money possible. Identifying the key value drivers in your business will help ensure that you’re also building a valuable asset while you’re busy running the day to day operation.

One popular online assessment tool that can help you identify those factors, and the relative strength for each is the “Sellability Score”, a system developed by John Warrillow, best-selling author of “Built to Sell: How to Create A Business That Can Thrive Without You.”

In this book, the author makes the case for maximizing business value by minimizing your direct involvement, and focusing your efforts on strategic “value drivers” instead. The Sellability Score was designed to scorecard your progress.

The Sellability Score guides business owners through a 15-minute questionnaire that assesses the overall “sellability” of their business, delivering an immediate score between 1-100. Answers to important questions are revealed in the survey, including;

– Does the business produce consistent financial results?
– Does the business produce a steady flow of cash?
– What is the growth potential for your business?
– Is there a stream of recurring revenue in the business?
– Do you have satisfied customers, willing to tell others?
– How reliant is the business on only a few customers or vendors?
– Do you have a unique selling proposition or competitive advantage in the marketplace?
– How critical are you to the overall business?
The Sellability Score generates a 27-page report that contains detailed information on these eight key attributes of a sellable business, as well as explanations as to why they’re important in determining business value and how your business scores on each attribute relative to the total. To date, more than 30,000 businesses have completed the survey, creating a sound database of businesses across all categories.

Selling your business for maximum value is the reward for building a business with an eye to the future. Knowing where to allocate the limited resources that you have available to grow your business, namely time and money, is key to achieving that maximum value at closing.

The Sellability Score can help you identify the strategies to get started. Take the survey now at www.sellabilityscore.com

nancygary1

Gateway Business Brokers LLC is owned by Gary & Nancy Hallett in Atlantic Beach Fl. Their team has owned, operated bought and sold businesses ranging in value from $50,000 to several million over a 30 year period. They assist business owners in the preparation and sale of their business and buyers in finding the right business to purchase. They can be reached at info@gwbusinessbrokers.com or (904)
372-9157


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