Does Your Business Have Curb Appeal?
Let’s say you’re in the market to buy a house and view one that looks appealing in the ad. How does it look on the inside? The outside? What about the location? What is your general impression?
Like your house, your business projects an image to potential buyers. When they come to see your company for the first time, your “curb appeal” can attract a buyer to your business—or cause them to walk away from it.
Do you need to improve your curb appeal? Here's a three-step plan:
1. Fix Your Leaky Faucets
Perhaps, like many other business owners, you started your business from scratch with one or two employees, and now you have 20 people working for you. But do you have the appropriate HR infrastructure for a company of that size? Perhaps you even take pride in your informal management style, but it can be a liability when it comes time to sell.
Ensure your human resources policies are at least as stringent as those of the company you hope will buy your business. Some basics to have in place:
• A written policy making it clear you forbid any form of harassment or discrimination;• A written letter of employment for each staff member;• A written description of your bonus system; • Written policies for employee expenses, travel, and benefits.
2. Assemble Your Binder
When you go to buy a house, it will give you confidence if the owner has the instructions manuals for the appliances, information on where they were purchased, and who to call if one breaks down.
Similarly, when a potential buyer looks at your company, he wants to see that you have your business information in order. Documenting your office procedures, core processes, and other intellectual capital can help you attract more bidders and increase your company's price while lowering the chance of the deal falling apart during diligence.
If you want to attract a buyer one day, your business needs a binder with instructions for essential functions, such as:
Opening up in the morning and closing down at night;
Forms and step-by-step instructions for routine tasks;
Templates for key documents;
Emergency numbers for service providers;
Billing procedures for customers.
How your company is positioned in the market and your marketing tools.
3. Document Your Intangibles
Intangibles for house buying might include: Is the house near a good school or daycare? What kind of neighborhood is it? What kind of commute are you looking at to get to work?
Your business also has intangible, often intellectual, assets that a potential buyer needs to be made aware of, such as:
Proprietary research you’ve conducted;
A formula for acquiring new customers;
Criteria you use to evaluate a potential new location;
Your unique approach to satisfying a customer.
As with selling a house, your company's curb appeal can go a long way toward closing a deal.
Mark Hartmann is a three-time Inc 500|5000 CEO with a rich sales, operations, and leadership background in the insurance, financial services, and healthcare sectors. With extensive experience growing and selling his own businesses, Mark leverages his expertise to help owners grow and sell businesses valued at $1M —$25M. He’s earned a master’s degree in organizational change management from St. Elizabeth University and a graduate certificate in executive coaching from Columbia University. Mark’s professional certifications include Certified Mergers and Acquisitions Professional (CM&AP), Certified Business Intermediary (CBI), Certified Exit Planning Advisor (CEPA), and Certified Value Builder (CVB).