Looking to sell your business, but stuck on how to maximise your exit?
When acquiring a business, buyers want maximum gains for the least amount of risk possible. No matter its success, every business is subject to some degree of risk. By diversifying your business, ensure risk is decreased and valuation is maximised, so that you can be satisfied in your exit.
At Business Brokers, we’re in the business of helping you sell, including valuing, marketing and negotiating the terms of your sale. If you’re in the process of selling your business, we’ve compiled a list of five tips that will help you get optimal valuation and returns through diversification.
Target new demographics
Perhaps easier said than done, diversifying your customer base can go a long way in maximising your business’ value. Rather than relying on a singular niche group, it may be beneficial to target multiple niches. This isn’t to say you should broaden your target demographic entirely, given that many of the world’s most successful businesses don’t attempt to be all things at once, but rather support a few clearly identifiable niches.
A diversified customer base reduces dependency on an individual demographic. You may choose to do so through introducing products appealing to a specific niche, or through simply providing added value items in your range that can be beneficial to multiple niches.
Expand internationally
Each month, Australian businesses export over $30 billion of products and services to international customers. Going global can be a relatively foolproof way to safeguard against nation-wide economic fluctuations. Through expanding to a multitude of countries, rather than staying domestic, your business has the opportunity to thrive despite macroeconomic conditions that may negatively impact Australian-wide sales.
Buy an existing business
If you’re in the position to do so, acquiring a business whose core operations and propositions mirror yours allow you to quickly reach a wider customer base and increase market share. However, doing your due diligence is crucial in ensuring the prosperity of both your, and the acquired business. Remain vigilant when reviewing key documents such as the business’ contracts, expenses, profits and loss statements.
Diversify suppliers
Another way to diversify your business is through broadening the suppliers you work with. Avoiding reliance on a single supplier may allow for smoother supply chain operations, in the chance that one of your supplier’s experiences unprecedented disruptions. Doing so also provides leverage during the negotiation process of your sale.
Expand product offerings
Going hand in hand with targeting new demographics, expanding your product offerings can decrease risk through reliance on a single product. Whilst you cater to a wider customer base through diversifying your range, you can also activate multiple streams of revenue.
How we help
Business Brokers is an all-comprehensive that can help you complete your business journey. When looking to sell your business, we understand the importance of maximising your exit. That’s why we offer expert guidance to ensure the time spent dedicated to your business was well worth it.
Contact us today to get the most out of your business’ sale.
