10 Ways to Grow Your Small Business and Make It Attractive to Buyers
Maybe your small business doing well, but you want it to grow even more. Maybe you're thinking about selling it someday. Many small business owners dream of this, but don't know how to do it. Here are 10 simple steps to grow your business and make it appealing to buyers.
1. Improve Your Business Plan
Your business plan is very important. It's like a map for your business. To grow, you need to understand what's working well and what isn't in your current plan.
Tip: Look at how you make money now. Which products or services make the most money with the least work? Focus on those. Think about stopping or automating the parts that don't make much money.
Example: Sarah was a graphic designer who made custom designs for clients, which was time-consuming. Instead, she started selling ready-made design templates online and made more money without working more hours.
2. Create Better Work Systems
To grow your business, you need to work efficiently and have good systems in place. Without clear ways of doing things, your business might become messy and stressful as it grows.
Tip: Record how you do things in your business: how you talk to clients, how you manage projects, how you handle daily tasks. Use tools to create step-by-step guides that your team can follow.
Personal Story: When I started my first business, I kept everything in my head. This became a problem when I started hiring. Things started running smoothly when I recorded our processes.
3. Make Your Finances Clear
If you want to sell your business someday, buyers will want to see clear financial records. If your finances are messy, it will be hard to find someone who wants to buy your business.
Expert Advice: Work with an accountant. Make sure all your financial statements are accurate and up-to-date. Buyers will look closely at these, so they need to be clear and honest.
Tip: Use accounting software that can automatically track your money and create reports. This keeps your finances organized and makes it easier to show buyers how your business is doing.
4. Find Different Ways to Make Money
Relying on just one way to make money can be risky. Having multiple revenue sources makes your business more stable and more attractive to buyers who want a safe investment.
Tip: Look at your current customers. Can you offer them new products or services that go well with what they already buy? Also, think about selling to new types of customers or entering new markets.
Example: Mike owned a digital marketing agency that mostly did SEO work. He noticed that many companies offered SEO, which was driving prices down. He started offering content marketing too, which made his agency more valuable and attractive to potential buyers.
5. Build a Strong Brand
Your brand is more than just your logo or slogan. It's how people think and feel about your business. A strong, consistent brand can make your business much more valuable.
Tip: Review your brand. Does your message, look, and customer experience all match? Make sure your brand shows what makes your business special and appeals to your target customers.
Personal Story: When I started my second business, I focused on branding from the beginning. I hired professionals to help create a strong brand, and I made sure everything about my business - from the website to how we talked to customers - matched this brand.
6. Get More Loyal Customers
Buyers want businesses with many loyal customers. If most of your money comes from just a few clients, buyers might see your business as risky.
Tip: Focus on keeping your current customers happy and finding new ones. Start loyalty programs, talk to your customers often, and always look for new clients. This makes your income more stable and your business more attractive to buyers.
Example: Jane ran a small personal investing company. At first, 80% of her money came from just two clients. She knew this was risky, so she worked hard to get new clients and offer more services. Over time, she built a diverse group of clients, which made her business worth much more.
7. Use Technology to Help You
The right technology can help small businesses grow faster and work more efficiently. It can automate repetitive tasks, improve customer experiences, and boost your marketing efforts.
Tip: Use customer relationship management (CRM) systems to manage client relationships and track potential sales. Use tools to automate tasks, and try AI-powered analytics tools to understand your business performance better.
Expert Advice: Keep up with new technology in your industry. Using the latest software or exploring new tech can help you stay ahead of competitors.
8. Build a Great Team
Your business is only as good as the people who work in it. Buyers aren't just investing in your products or services; they're investing in your team too.
Tip: Hire good people and keep them happy. Create a positive work environment, pay fair salaries, and give opportunities for learning and growth. A strong, motivated team will help your business grow and make it more attractive to buyers.
Example: John, who owned a successful online store, focused on creating a good team culture and making sure employees felt valued. When he sold his business, the buyer was impressed not just by the finances, but by the great team that would keep the business running after the sale.
9. Plan How You'll Sell Your Business
Selling your business isn't just about finding a buyer. It's about making sure your business is ready to be sold. This means planning ahead and making sure every part of your business is in good shape.
Tip: Start planning to sell your business at least two years before you want to sell. This gives you time to organize your finances, improve how the business runs and make it attractive to potential buyers.
10. Create a Good Marketing Plan
To interest buyers, you need to show that your business knows how to attract new customers and make sales. A good marketing and sales plan does this.
Tip: Map out how customers find out about your business and decide to buy from you. Use tools to see how well your marketing is working, and make changes as needed. Make sure your marketing plan can keep bringing in customers even as your business grows.
Expert Advice: Regularly review and improve your marketing plan. What worked last year might not work this year, so be ready to change your approach. A strong, automated marketing plan not only brings in more customers but also shows buyers that your business can grow without needing your constant attention.
Start Growing Your Business Today
Look at your business and decide which of these steps you need to focus on. Start with one small action today - write down a work process, organize your finances, or invest in your team. Set a clear goal for where you want your business to be in a year, and start working towards it.
Connect with an Old National Small Business Banker for more insights to help your business grow.
This article was written by Lien De Pau from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
