Do you have questions about how to calculate your business’s sellability score? Whether you’re looking to sell your business in the near future or years from now, understanding your sellability score will help you thrive. The sellability score identifies the high-value points of your business you should be investing in and the low points that may drag your score down. We’ve put together an easy-to-understand guide that will take you through some of the factors that determine your business’s sellability score.
Why Find Out Your Sellability Score?
It’s essential to build an accurate picture of your business to attract credible buyers. You want to maximize your sellability score to buyers to receive a price that is accurate to your business’s potential value.
It’s never too early to start planning and improving your business’s sellability score. Our business process will illuminate your business’s profitability, areas for growth, and opportunities for better management. So no matter what stage of development your business is in, understanding where to improve your business can improve profits and growth. You can work with Marc Borelli, a professional business coach in Atlanta, GA. Marc Borelli will help enhance your business’s value and sellability.
How is the Sellability Score Calculated?
A sellability score will give you a number between 0-100 that assesses the likelihood of selling your business and the potential price point. It is based upon key drivers of sellability that make it attractive to prospective buyers. A sellability test will have you answer in-depth questions concerning these key performance drivers that will determine your score.
Buyers want to see a well-kept revenue history that can represent future profits. Showing growth in profits and sales will increase your score. Convincing potential buyers of realistic opportunities for potential revenue increases can also boost your score.
When buyers look at buying a business, they want to find one with the potential to grow. If they were to take on ownership of your business, at what rate could they expect to expand it with regular effort? Having unrealized but realistic avenues for growth will increase your value to potential buyers.
Having a positive reputation among your customers or community is essential. Potential buyers want to purchase a business with a reputable brand. So if you have highly rated online customer reviews or surveys, it indicates that customers will repeatedly buy and tell others about your business.
Potential buyers want to see that your business can run okay without you in charge. To show this attribute, you must have a stellar management team in charge. This way you can carry on the business without you there so customers will still want to frequent your business.
Many factors go into determining your business’s sellability. No matter what stage your business is in, understanding your score will only help you now and in the future when you are ready to sell. Consider working with Marc Borelli, a business coach in Atlanta, GA, who can help your business grow to its full potential.