2,400 Businesses Per Day: How To Exit In A Buyer’s Market

Let's paint a picture: In the US, every day, a whopping 12,000 people turn 65, hang up their hats and head into retirement. Of these, around 20% own small businesses. Do the math, and you've got nearly 2,400 businesses daily needing a new captain at the helm.

This trend has tipped the scales, creating a buyer's market, which means fewer businesses get sold.

So, guess what? It is time for you to step up. How do you make sure your business sells for what it's truly worth when buyers are having the luxury of choice?

Let’s dive into 4 strategies that help you sell in a buyer’s market.

1. Financial Fitness: Get Those Numbers Fit

First up, let's talk money. You want your business's financials to be as fit as a fiddle.

• Clean up those books

• Cut unnecessary costs

• Make sure your revenue looks like it's been hitting the gym.

A fit financial profile means buyers will be more likely to pay top dollar.

Real Talk:

A tech client I worked with multiplied their business valuation by 3 after we helped them to double-down on their recurring revenue streams.

2. Building a Strong Operational Framework

After getting your financials in shape, it’s time to look at your operations. Efficient, streamlined operations are a key selling point.

• Review and optimize your business processes.

• Ensure your technology and systems are up-to-date.

• Build a strong team that can operate without your daily input.

A business that runs like a well-oiled machine not only operates more profitably but is also more attractive to buyers.

Friendly Advice from the Trenches:

Meet Jocelyn and Shane Sams, the dynamic duo behind Elementary Librarian. Back in 2012, they started selling super-helpful lesson plans to school librarians. Fast forward five years, and they're handing over the keys to their business for a cool $1 million. How did they do it?

“Recurring revenue, systems and automation are the most important things for valuations… So hire, systemize, and automate.” Shane says.

3. Show Off Your Business's Uniqueness

Every business has something special. Identify what sets yours apart – it could be an exclusive product, a strong brand, or a loyal customer base. This is your chance to make your business irresistible to potential buyers.

Example of Unique Awesomeness:

Nick Gray, Founder of Museum Hack, hired stand-up comedians and actors so no museum tour would be the same, but they would all be fun and interesting. The company sold to its leadership team for “a few million dollars”, Gray told They Got Acquired.

4. Timing is Everything: Choose it Right

Let's talk strategy. Selling your business isn't just about what you're selling; it's also about when. Keep an eye on market trends and jump in when the time's right.

Insight:

Rebekah Bastian co-founded OwnTrail in March 2020, creating a safe space for more than 6,700 people allowing anyone to show up authentically, share professional and personal milestones and help each other out. 3 years later, she was running out of cash and forced down a different path. Bastian wasn’t ready to sell but

“The reality is, the market conditions forced me to exit earlier than I wanted.”

Determined to keep OwnTrail alive, Bastian sold it for an undisclosed amount to career development platform Teal.

Your Turn to Shine

Now, let's get personal.

• Think about what makes your business uniquely awesome.

• Jot down three things that stand out.

• How can you use them to make your business attract the right buyers.

By focusing on what sets your business apart, you're not just preparing for a sale; you're setting the stage for a big exit in a buyer’s market!