There are a number of differences between selling your startup business and a business that has a history of success.
In fact, startups are unique in that they face a variety of different challenges that are inherent to their business. However, despite these challenges, startups can be extremely attractive as they often possess untouched potential.
Listed below are several ways to increase the value of your startup before you sell it!
Increase Probability by Introducing Recurring Revenue Agreements
One key way to raise your value is simply by driving-up your profitability and increasing the revenue.
Before selling your company, your overarching goal should be enabling your business to reach its highest potential.
Several options for achieving this goal may include introducing recurring revenue agreements with current clients, convincing customers to sign 12-month contracts or other ways to increase your revenue certainty.
Overall, customer contracts are one of the most influential ways of improving both your value and potential for future growth.
Remove Yourself from the Equation
Investors frequently look to note whether a startup can run smoothly without the owner involved in day-to-day operations.
If your company is overly-reliant on your services, then it may not be able to successfully transition to new leadership.
By stepping out of the daily picture, you can show investors proof that your startup can remain successful without you.
Craft Standard Operating Procedures
In order to fully understand and assess the value of your startup, potential buyers will want to observe the ways in which your business runs.
By having documentation which systemizes and makes your company’s operations easy to understand, you can assure buyers that your tasks and operations are easily repeatable which will provide them with increased peace of mind.
One further step involves automating as many tasks as possible which can help increase the probability of a smooth transition. Whether you create workflows, flowcharts, this one step will likely ensure that your startup remains an attractive option for buyers.
Tidy Up Your Business by Tidying Up Your Books
One way to attract investors is by examining your books in order to avoid the accounting mess that so often plagues startups.
In the past, sloppy, disorganized accounting has resulted in investors passing over a previously-attractive company. As a result, it is extremely important to examine and analyze your books in-depth.
Ensuring all your books are easy-to-read and accurate, you can enable buyers to be confident in the financial success of your company and its probability to continue growing.
Set Your Startup Apart from the Competition
One important step to increase the value of your startup is enhancing the way it stands apart from the competition.
No investor wants to buy a company that is exactly alike to ten others. Your goal should be to highlight the ways in which your company is different.
Innovation and creativity are significant in underscoring your business’s unique services. By dedicating yourself to highlighting your company’s innovation, you can continue generating interest and attracting potential buyers.
In the end, by using the same vision and dedication that enabled you to create a successful start-up from the ground up, you can increase your company’s value before selling.
Carefully work to uncover what potential investors will want to see in your startup and work to implement these elements into your daily routine. Who knows, your hard work could pay off and stoke a bidding war between multiple buyers.