COVID-19 changed many life plans for countless individuals around the globe. Certainly, the same is true for you, your family, and your business plans. If this pandemic has put your business sale on hold, there are certain things to consider as the world begins to reopen. The main question many entrepreneurs have is whether or not to delay sales and purchases. That might not be necessary.
2020 does not need to be completely canceled. The important thing to realize is that buyers may have brand new concerns to consider when reviewing a business you are planning to list for sale, such as:
- What steps were taken to manage cash flow during the COVID-19 crisis?
- How did your business perform during the shut-down?
- How did COVID-19 impact your earnings forecast?
- Will the impact of COVID-19 create any structural or operational changes moving forward?
Of course, Transworld Business Advisors Houston is here to help you prepare to answer these questions as soon as possible. Here are some tips to consider:
1. Try to keep your business as open as it can be
In essence, if you are in the restaurant business, do takeout. If you’re in the service industry, consider social distancing options. By finding creative ways to remain open during the crisis, you can present potential buyers with an optimistic outlook for a possibly changed future.
2. Reorganize your financials
Buyers will want to see how much your business makes in a 12-month period and how COVID-19 has impacted that. Honesty is your best policy – be open about delayed and lost sales, supplier interruptions, layoffs and furloughs, government loans received, etc.
3. Document everything
This may seem like an obvious one, but it is critically important to keep a log of everything that has been impacted and what you have done to remedy it. This will show what you have learned, what was or wasn’t successful, etc. For instance, things like focusing on certain products or a reduction in overhead spending.
4. New expectations
Without a doubt, your industry was affected by COVID-19 – because every industry was. By determining what has changed and what is not likely to return to the way it used to be, you can be a leader in your market. A potential buyer will be more confident in a purchase if they are purchasing from a confident seller.
A crisis can always make a business stronger. A pandemic is a perfect opportunity to determine which products or services are considered crucial to your customer base. Take this time to eliminate any dead weight and focus on what has continued to promote growth.
There is always a time to buy and sell, no matter what the world is going through. If you need any assistance or reassurance, an experienced Transworld business broker in the Houston area can help you every step of the way.
Contact Transworld Business Advisors Houston today!