Only 4-5% of the businesses listed for sell on the website BizBuySell.com are sold per quarter, observes Josh Patrick today on the NYTimes.com’s “Your the Boss Blog.” Here is his advice for making your business easier to sell:
Have a recurring revenue model
It’s best if you have contracts in place. Second best: a system in place for regularly renewing a service.
Become a passive owner
Businesses that are dependent on the owner for day-to-day operation are a job, not a business that can be sold.
Be prepared to share sensitive information with potential buyers, even if the buyer is a competitor
If you fear a competitor will use an interest in buying to steal valuable information, you and your advisers must find a means to protect sensitive information while also providing all of the information needed by potential buyers, competitors or not.
What if your business doesn’t sell?
You have three choices. (1) Address the issues that caused potential buyers to walk away. (2) Keep running the business yourself. (3) Close the business.
(Via: NYTimes.com You’re the Boss Blog)