How to Create a Strong Selling Proposition
Looking to sell your business or franchise? Let’s dive into how you can create a strong selling proposition (aside from having your operations and financials in order) for your business or franchise for sale.
A Unique Brand
Branding, Branding, Branding. Don’t get boring, don’t get comfortable and take advantage of forward thinking technology to continuously innovate your products/services and evolve as a business. The bottom line is that companies that do not invest in this type of action have a lower selling proposition and therefore cannot demand a premium on their selling price. One of the biggest value killers is not working to evolve a business and brand by saying “we’ve always done things like this, so why change?”
A Strong Team
As a business owner, if you are not replaceable, then you are a liability to your company. You need to ensure you have a strong team and/or recruiting process that continuously has the ability to find strong candidates who are skilled, passionate and inspired to do great work. The value of this is greater than you think. Many business owners puff out their chests and say they are the business, which can be true, however, if your goal is to exit and sell one day – you need to change that quick! No buyer wants to acquire a business with so many variables or unknowns, especially if there is a high probability of losing clients due to a more personal relationship that may have developed with the business owner vs. the business.
Unique Values
You need to dive deep here on every aspect of your business. Is there some sort of intangible that increases the value of your business vs. another? For example: do you have some sort of intellectual property? Do you have a monopoly? Is your product/service/resources a rarity that provides maximum value to your target segments? Is your marketing footprint (social followers, users, clients, subscribers) significant and engaged? Knowing this will help you at the negotiating table and not knowing this will definitely hurt you. A great buyer will pick holes in your business in order to drive the price down. Your job is to protect and defend in order to show the value/selling proposition of your business.
A Unique Buyer
Think about creating a buyer persona to help you understand who would see the most value in purchasing your business. This makes it easier for you to tailor your approach (where should Ipromote the sale?), your messaging and develop answers for concerns a particular buyer may have. You may have created a buyer persona for your products or services in the past, however, it’s critical to develop detailed personas for the sale of your business as well . Here’s an example:
Each one of the above examples will need to have a different and tailored message. As a seller, you need to remember, a buyer isn’t buying a business for today, they are buying a business for future opporunities – so be clear on this.
- Buyer 1 – A publicly traded company
- Buyer 2 – An existing client
- Buyer 3 – A wealthy family looking to buy a business
- Buyer 4 – A private-equity firm interested in your space
- Buyer 5 – An existing employee
Curb Appeal
How it looks increases the value of the business.
There are many articles about renovations that can increase the value of a home, however, you rarely come across things you can do, aesthetically, to increase the value of your business. This may apply to only a few businesses, nevertheless, it’s something to consider aside from having your operations and financials in order. Simple things like:
- Investing in a fresh coat of paint in order to brighten up the place.
- Investing in artwork & amenities that represent the culture of your business.
- Investing in furniture and equipment that represents the year you’re living in.
- Transitioning to a green and eco-friendly environment.
- Investing in new signage to represent the strength of your brand.
- Investing in landscaping (if applicable).
How are you creating a strong selling proposition for your business? Comment below and let me know! You could be helping another business owner or entrepreneur.
Nunzio Presta, Founder & CEO, BizON
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