Getting Your Business Ready to Sell

By: Valerie Briley, CPA, Founder, and Chief Business Driver, Reveal Business Solutions

Owning a small business is a lot of work. It is also one of the most rewarding things I’ve experienced in my career.  In addition to being the Founder and Chief Business Driver at Reveal Business Solutions, my husband, Todd, and I were the owners of a niche auto repair business in Denver. We grew The Subie Doctor to a seven-figure annual revenue and recently closed on the sale of that business and commercial property just shy of its 6th anniversary.

Todd, an automotive electrical engineer, was stuck at a job behind a desk, unfulfilled and unhappy. Like many of our clients at Reveal, he created a business plan based on his passion and technical know-how. I contributed complementary skills, including a focus on the customer experience, accounting that provided actionable data, so we operated profitably, and an outside perspective to implement operational efficiencies.

As business owners, we can get so wrapped up in the day-to-day demands of operating a business that we lose focus of the end goal. More frequently, we hit the ground running without establishing any goals. When we started The Subie Doctor, our goals were simply for Todd to be more fulfilled in his work and to replace the income from the job he left.

Once we passed survival and started thriving, we explored our wishes and dreams and set new goals. Our next goal was to have lifestyle businesses. This meant creating a great place to work for a strong team that would remove us from the day-to-day, so we could lead strategically and take time off while the business successfully served customers and operated profitably.

We achieved our goal of ownership of a lifestyle business. Moving out of state to a warmer climate earlier than planned pushed us to evaluate our next goal. We determined that selling The Subie Doctor was right for us. The business had a strong brand, operated profitably, and offered many upsides to potential buyers. The key to our successful sale was that the company was not dependent on us.

What are your goals for 2023? Do you have a lifestyle business? What is the end goal for your business?

If creating a lifestyle business or selling your business is on your list of goals, here are 6 steps you can take to get your business ready.  If you are a client of Reveal Business Solutions, you’ve already got the 1st step completed.

  1. Clean up your financials. Ensure that your books are in order, your financial statements are accurate, and your tax returns are up to date. This will make it easier to determine the value of your business and create a more favorable impression on potential buyers.  If you are aiming for a lifestyle business, this will help you understand your expenses and profitability.
  2. Document your processes. Create detailed process manuals that outline how your business operates.  This can include everything from how customer orders are processed to how employees are trained.  This documentation can make it easier for a new owner to understand and run your business.  It can also help you identify tasks and responsibilities that you can transition to an existing or new team member.
  3. Update your technology. Make sure that your technology systems are up-to-date and well-maintained.  This can include software, hardware, and other equipment.  Systems should automate and integrate!
  4. Streamline operations. Consider ways to make your business more efficient, such as automating processes, simplifying tasks, or unnecessary steps using modern techniques and technology.
  5. Build a strong team. Ensure that your employees are well-trained and motivated and that your management team is capable and effective.
  6. Focus on growth. Demonstrate to potential buyers that your business is growing and has strong potential for future growth.  This could be acquiring profitable new customers, but it could also focus on existing customers with additional profitable services.

We offer complimentary annual strategic meetings with our clients so we can hear and align with your goals for the following year. Understanding your goals enables us to provide accounting and advisory services aimed at helping you achieve your goals.

The Reveal Business Solutions team is here to support your business goals. Contact us today if you have questions about our experience selling our business or what we can do to help you reach your goals.