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Are you thinking about selling your business?  Maybe you are ready to retire to Hawaii and play golf.  Maybe you want to sell your current business and invest those profits in a new for-profit or non-profit venture.  There are many reasons to sell your business, however the primary goal of most sellers is to sell the business at the highest price possible.  Today we will examine how you can achieve your goal.

As CEO and Senior Business Growth Specialist at Executive Business Advisers, I work with many clients who have a goal of selling their business in the next 1 to 3 years.  In the end, the ultimate goal of most business owners is to sell at the highest price possible.  The key question being asked is how can I increase my selling price based on my business today?  What can I do to take my $100,000 business and make it a $1 million business?  Or, my $100 million business and sell it for $1 billion?

The best way to understand your business value is to look at your business from the perspective of a potential buyer.  By thinking like a buyer, you can see more clearly the key characteristics that influence your selling price.  There are many characteristics a buyer will consider, however they all lead to the top two – Sales Revenue and Profitability. 

To increase the selling price of your business you must maximize your sales revenue and profitability. Here are proven strategies you can take to quickly increase your business selling price.

1. Sell Proprietary Products – Unique design, functionality and technology can make your products proprietary, which can increase the desirability of your company and the price a buyer is willing to pay.  Proprietary products offer protection from the competition and enables you to sell your products at a higher price and profitability. 

2. Differentiate Yourself – Similar to selling proprietary products, you can sell more at a higher price if your customer perceives your products and services are unique and different than others on the market.  Even if you sell products that are not proprietary, you must show your customers what makes you different than everyone else.  When you do this successfully, you become the best choice driving up the value of your business. 

3. Focus on Niche Markets – Selling everything to everyone in a major market can blur your image and is very competitive. Instead, position yourself as a market leader in a niche market.  Niche specialists focus on specific industries or type of customers.  Based on previous sales history, pick a niche market that drives your greatest sales, profitability and quickest sales cycle.  Focus your efforts on the proven niche market and this will drive business growth with the least amount  of effort.  Niche market leaders with strong revenue and profit growth are highly desirable businesses for buyers. 

4. Repackage Your Offerings – Drive dramatic sales growth by reinventing what you offer customers in a manner that increases sales volume and profitability.  Bigger sales revenue and profitability comes from bigger offerings. Offer super sizes, volume discounts, extended contracts or product bundles.  Try small “Early Buy” incentives to increase volume, but keep them small with a time limit.  Stand strong on the value your offering provides and stick with the original price. Do not discount pricing on your offerings if they truly provide the value described.  Provide three options or price points. Customers are more likely not to choice the lowest price. Use a set of three options to move customers from the lowest to the middle price range. Make sure each range is well defined and the differences stand out.  Repacking your offerings will increase sales revenue and reduce your sales and marketing costs, driving up the selling price of your business.

5. Get Rid of Underperformers – The best way to dramatically lower your costs and improve profitability is to get rid of all your underperformers.  I mean all of them.  Evaluate all of your products and services and shelve them if they are not profitable or help drive sales of other offerings.  Stop all marketing that is not delivering a positive return on investment.  You should also evaluate your sales team and eliminate underperformers.  This is a perfect time to build a strong team of top performers.  Buyers will pay more for a business that has a clear focus and products that generate solid sales revenue and profitability.