Here is a scenario that we often encounter:  the phenomenally successful business that looks absolutely scary when you walk in the building.  Yes, buying a business is based fundamentally on the financial performance of the business.  But how does someone get themselves comfortable with the accuracy of the financials? 

I can say from experience that the image that a business portrays - and specifically, their physical image - goes a long way towards making a buyer feel comfortable with the business.

When a buyer or investor walks into your building and everything is neat and orderly, they can not help but feel that you run an organized business.  And if your physical appearance is well put together, then everything about your business must be likewise as neat, orderly, and successful. 

So what does this mean for the business seller? 

Key Steps for Company's Spring Cleaning

• Make sure the entrance looks appealing.  New paint, new sign; whatever it takes to give your business a nice warm "curb appeal."
• Clean your office.  You should not have the last 12 years of books, mail, and paperwork stacked throughout your office.
• If you are a factory or warehouse operation, ensure that everything is orderly. Clean out scrap items, unnecessary clutter, etc.
• For manufacturing operations - make sure all of your production data on wall charts is up to date.  Many factories have quality data posted on bulletin boards that is several years old.  This is sure to make someone wonder about your quality system! 
• Vehicles - make sure all company trucks and vehicles are in good working order and presentable.
• Finally - You.  When meeting with a buyer, first impressions count!  Make sure that you dress to impress.

Yes, many of this things may seem simple and unimportant.  But at the end of the day, the entire process of buying a business comes down to judging the amount of risk one is about to accept.  As such every little thing that the seller does to keep the buyer at ease is another step towards lessening that perceived risk.

For more information on this and other subjects regarding the preparation of your business for a sale contact Dan Doran at Clear Rock.