Hospitality Business Broker

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Tip 21 (part 1): Show me where the money comes from.

If your business has different Revenue streams – show it. Try not to put all your takings into one lump sum.

Buyers are looking for opportunities increase revenue and maximize profit. They will often have expertise in a particular area. If they can’t tell where the revenue comes from (and you can’t tell them) they may not see the opportunity and choose another business.

Ideally you should be doing this already, but if you’re not – start today. Even if your numbers are informal, in a “day book” or journal, knowing where your strengths are can point a potential buyer to the real value in your business.

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Hidden Assets – your Intellectual Property

Tip 11: Trademark your Name(s).

Trademark your Business name, and the name of any products that you create. This protects your business and product name(s) from being used by anyone else.

Unfortunately this is one tip that will cost you some money but the payback should be worth the investment. Look online for services that allow you to file a trademark yourself.

If you’re looking to trademark your name in New Zealand, or internationally, take a look at Trademark Zone for information, advice, and online applications.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 20: Think like a Buyer.

This might sound obvious but most vendors are stuck on one side of the fence.

Think of yourself as a Buyer coming to look at your Business:

• What would you think?
• What questions would you ask the owner?
• What objections would you use to get the price down?
• What opportunities would you see?
• Where’s the value in this business?

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 19: Protect your Confidential Information.

Don’t give your confidential business information away to just anyone. Decide what is appropriate to share and when to share it.

Your Business Broker will have a Confidentiality Agreement and will make sure it is used to protect your business.

If you’re not using a Business Broker make sure you get a Confidentiality Agreement from your solicitor and get it signed by anyone who asks for information.

If someone won’t sign don’t give them anything – they’re not a real buyer.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 18: Keep Marketing your Business.

Keeping your business running profitably is the most important thing you can do to maximize your potential selling price. Just because you’ve decide to sell and have put your Business on the Market don’t stop running it!

Businesses often take a long time to sell and failing to manage your business properly and letting it run down can severely reduce the price you ultimately achieve.

Continue to advertise and promote your business. You never know, a renewed burst of energy could be just the thing that attracts a buyer.

Watch your costs and expenses. It’s often easy to let the controls slip and before you know it you’ve eroded some of your profitability. Not good for your selling price.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

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21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 17: Present a clean and tidy business.

Make sure you premises are clean, organized and tidy. Get rid of anything that doesn’t go with the business. Get rid of any junk and clutter. Make it easy for a prospective purchaser to really understand what they are buying.

Nothing says “bad management” more that dirty and untidy premises. In a buyers mind it’s a short jump from an untidy storeroom to not being able to trust your financials. Rightly or wrongly they’re thinking “if this is how the manage the business how do they manage the money”

So do everyone a favor and get the place tidied up!

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

Extract from:

21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 16: What’s your reason for selling?.

You don’t need to give too many details but honestly address the reasons that contributed to your decision to sell.

No need to pour your heart out but be honest. If you’re tired – say so. If it wasn’t what you thought it would be when you first brought it – say so. If you’ve worked really hard and built it up – say so. If you’re trading up, or down, – say so. If it’s just time to go fishing – say so.

Having said that don’t make it sound like this is the worst business in the world. You need to find a balance that honestly reflects your reasons for selling while highlighting the opportunities for a new owner.

Note: Don’t “B S”!! A sophisticated buyer will see through it and will walk away if they think you’re trying to hide something

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

Extract from:

21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Professionalism and Presentation

Tip 15: Write an Overview.

Write a simple overview of the business from your perspective as the owner. This is a chance to tell your story, to share your view of the business.

Talk about what the business is good at and why you think you’ve done well. Talk about what you’ve chosen not to do and why you made those decisions.

Talk about the competition, and what they’re better at than you. But don’t slag off the competition, that won’t win you any friends.

The overview only needs to be one page. A buyer is simply looking for your educated and experienced view of the market.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

Extract from:

21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Unlocking hidden assets – Your Landlord

Tip 14: Get your Land Lord on side early.

If you lease the premise where your business operates talk to your land lord early. Let them know that you’re thinking of selling.
If possible try and get a new lease in place before you go to market. If you can’t, make sure that any outstanding issues with the Land Lord are dealt with. This includes any outstanding maintenance or insurance issues.
The last thing you need when you have a buyer ready to sign a contract is a problem with the premises.
If you own the building and you’re only selling the business, get a formal lease in place early. This will allow you to demonstrate that the business can afford the lease.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License

Extract from:

21 (honest & frank) Tips for Presenting your Business to Maximize the Selling Price:

Unlocking hidden assets – Your Marketing (Part 1)

Tip 13: Create a Marketing Swipe File.

A swipe file is a folder or book of ideas that you’d like to try in your business – but haven’t got round to yet. It could contain ideas such as sketches, lists, or even pages ripped from magazines.

Add that to your Marketing Journal and you’ve got a fantastic resource for any new owner to use.

Steve Swann is a Specialist Hospitality Business Broker working with cafe, restaurant, bar and country pub Owners in the lower North Island.

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License