Getting Your Cleaning Business Ready to Sell (someday!)
Here’s a sad fact: the majority of cleaning businesses that are operational today, will never sell! Yes, you were reading that correctly. Most business will wither and be liquidated for “pennies on the dollar”. Sad but true.
So what can you do to prevent that from happening to you? Your years of hard work, sweat, money and most of all your dreams…all for nothing! This doesn’t have to happen to you. Here is a famous quote from Henry Ford:
“Whether you think you can or you think you can’t, you are RIGHT”
Wise beyond his years was Old Henry. He is trying to tell us that we are the only ones in control of our destiny. Nothing is predetermined expect death and taxes! Now there may be a grand plan in all of our lives and there probably is, but for the parts that we can control, we have to take charge. Our thinking can make us or break us.
When giving some thought to your future and what you will do with the 2nd half of your life, often the thoughts selling your business are not at the top of your list. Too many people don’t want to think about it or have never even given exiting from their businesses a thought.
The time is now friends, to think about the asset that you have. There are a few steps in the process you will want to have in place.
- First, let’s start with the big “if and when do you want to sell”. Some real self analysis needs to happen here. You may not be ready today or tomorrow or even in 5 years. But unless you want to “liquidate for pennies on the dollar” the time to start preparing is now. Some even go so far as to start their businesses with the end in mind. I know I did. I purchased my business for the sole purpose of building and selling. Everything I did was with the sale date in mind. All the structure and systems I put into place were to make it easy on myself and attractive to a buyer
- Next, take a look at how you look. Do you need some help in the image department? Remember, your business is competing against many other investment opportunities for a prospective buyer. Does your office need sprucing up? Do your vehicles need repair, painting, relettering? Think about how you market your business for selling. Buying, even buying a business, is an emotional decision. How a prospect “feels” about your business can determine how far the interest will go. Besides having great financials, the way you package your company must be appealing enough to encourage the potential buyer to look no further for his/her next investment.
- Third, get your business as turnkey as possible. Systems, systems, systems will make the difference. Remember, you are buyers want to walk in and start making money from day one. They have little interest in “cleaning up” what you didn’t want to do. They are in this to make money starting today! Think about the success of franchising and why that has happened. It’s a proven system that is already in place. There is a fee for that and so the “fee” that you get for your business will be higher when you have systems in place.
A prospective business owner will pay a lot of money for an investment that will bring a return immediately. They will pay for a well run machine where they can just click and go! Remember the question your buyer will be asking is “why should I pay for this?” Give them the reasons.
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