When you started your restoration business, you didn’t necessarily think about selling it. Now you have been in business for a while and the universe is telling you that you should think about selling. Unfortunately there have been times when I have had to give business owners the sad news that their business can’t be sold. This doesn’t mean “ever” it just means it can’t be sold right now. Here are five reasons your restoration business can’t be sold.
- It’s not profitable– This company needs to be showing a profit with reasonable cash flow. If cash flow is a problem, this is not going to be something a new owner would want to inherit.
- The business can’t run without you– If you can’t take a vacation because the business will fail without you, then how is the new owner supposed to step in? If you find yourself saying “I” all the time when referencing your business, then you need to rethink your structure.
- Family owned– Folks love working with family-owned businesses, but if family is your only source of staff or even makes up half of your employees, then this could be a deal breaker. Buyers are looking for seasoned staff that will stay on after they purchase the business. Also, family employees tend to get special pay and perks that a new owner probably won’t want to honor once the purchase is final.
- Processes aren’t in place– If you have easy to follow processes or at least a key person that knows the processes well enough to guide the new owner, then this is attractive. Noone wants to buy a mess or will think, “well, I’ll just figure it out.”
- Lack of marketing– of course you are marketing your business, but are you getting the primary of your business because of the owner’s name? Or are you getting business because of the reputation of the company. That is what you want – marketing of the company- not the owner.
If you find yourself identifying with these problems, don’t worry, this can be changed and turn into a profitable, sellable business. It will take some time to fix, but it can be done.
