When Selling Your Business, Don’t Ignore Curb Appeal

Curb Appeal is about making your business “show” well for potential buyers. If you're going to sell your house, before you show it to potential buyers you're going to probably mow the lawn, pick up the kids toys off the floor, make the beds, etc. Before you sell your car you would likely wash it and vacuum the interior.

This is something owners often overlook when selling their business. A business is more than just the financials and the expected return on investment. When it comes to selling owner operated businesses, so much is based on the psychological reaction of the buyer. They need to feel like they are walking into an environment where they would be comfortable and enjoy spending large amounts of their time. Not only that, but if they come in and the windows are dirty, the carpets are stained, and pictures are crooked on the wall, it just looks like you don't pay attention to the details and maybe that extends to business matters as well.

Likewise, if they walk into an environment that's clean, well lit, and with smiling, happy employees, they’ll be able to see themselves working there and being happy as well. That’s a big deal from a psychological perspective. So remember to pay attention to the details!

While we are on that subject, be sure to create the right impression with the materials you present to the buyer. What I mean by that is are your books and records organized and up to date? I’m not talking about financial records- that’s a different issue. I’m talking about current employee lists, equipment lists, product and service menus, an operations manual, etc. You want to create a clear road map so that a buyer doesn’t feel like they have to come in and figure things out on their own.

Jeff Brown is a Business Broker with Business Acquisitions, Ltd. in Denver, CO. He is also a former M&A Attorney and Entrepreneur who has owned, operated and sold five successful businesses of his own. Jeff can be reached at 720-989-4121 or Jbrown@Baltd.com.