Here's are Ways to Increase Saleability of a Closing Business "Business Failure" can happen with every type of company, irrespective how big or old the company is

By BusinessEx Staff

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Surviving in the tough competition requires great effort and competence from the companies. If a particular company topples in the race then it is eventually showed a way-out. Other than shutting the company, the business owner does not have any other option as the company fails to captivate customers in the market. "Business Failure" can happen with every type of company, irrespective how big or old the company is.

Taxi4sure, Videocon Telecom and Channel V are some of the for-profit business organizations which met their doom owing to the rigorous competition. Taxi4sure, an online car rental business, had come with a good business idea but the organization failed to create its own mark because of the excessive competition and unplanned future strategy. On the other hand, Videocon Telecom, a small telecommunication company could not afloat in the tight market as the onset of Jio, the Indian mobile operator, adversely affected its business and thus, decreased its network users. While Channel V, an international music channel, was closed down due to the decreased viewership.

In the aforementioned examples of business failures, there are distinct reasons that lead to the cessation of the business entities. Keeping that in mind, the small companies should accordingly plan out their departure so that the saleability of their business would not be affected.

Important Things to Consider for Escalating the Selling Price

Selling the business is somewhat like selling one's own house. One's home is usually embellished with showpieces, furniture and other interior adornments. Unlike the home, the office space cannot be decorated so elaborately, though, there are certain things that are must-haves in a company.

Similar to the "Curb Appeal" factor, there are certain strands which upscale or downscale the selling price of the business. In the context of selling a house, house's location, surroundings and additional facilities entice the buyers and thus, these factors together come under an umbrella term, Curb Appeal.

While in the office, employment policies, premium policies and customer satisfaction are some of the mandatory norms that exhibit a company's professionalism and, in turn, goodwill in the market. If a company does not constitute these underpinnings then it might be questioned on these by the visitors.

Aside from yearly profit, the buyers or visitors often scrutinize the office environment and workforce of the company. These two factors are common subjects to determine the growth prospects of a particular company.

A To-Do List For The Selling Businesses

While selling the business, there are a plethora of preparations that a businessman needs to do. For receiving a good price, it does not matter whether the company is small or large. The elements that are most important in the company valuation are financial reports, customer base and goodwill.

Failing to provide an apt report, the company's buying proposal can be denied and thus, good buyers would not consider buying the specific company.

1. Show Profitability

Profit is a primary factor that the buyers check in a company's reports. Adding the financial reports of the last three months is essential as it ensures that the firm is a smooth-running business. More so, the buyers should have access to all auditing reports and tax returns so as to go an extra mile.

2. Effective Senior Management

When a buyer decides to buy the company, he not only seeks the ownership of the business but also the employees working within it. Employees are indeed souls of the business and thus, should be committed to the organization, despite the change in the ownership of the business.

3. Satisfied Customers

Customers are an important indicator of a company's background. Long customer rapports symbolize positive traits of the company whilst the shorter strength of the customers infers poor productivity and success of the company. Thus, it is vital to showcase good customer rapports to the buyers.

Follow these tips religiously in order to receive a good price for the business.

Wavy Line

Related Topics

Growing a Business

3 Ways to Know If Your Growth Strategy Is Actually Helping You Grow

Growth should be a top priority in your business's first five to ten years. But it doesn't happen just by working hard.

Starting a Business

The Importance of Problem Solving When Building a Business

When you run up against an obstacle that seems insurmountable, the best thing to do is shift your perspective and try to look at it another way


7 Ways to Help Your Employees Become Better Problem-Solvers

Your employees are the ones who will carry your business to success. So, follow these steps to enable them to tackle problems on their own.


How do You Turn Employees Into Problem-Solvers? Follow This 3-Step Leadership Formula.

As leaders, we need to solve company problems effectively. We often have the urge to fix everything quickly, but is this system of problem-solving really sustainable?

Growing a Business

Subscribers Exclusive Event: Discover How These 2 Founders Turned Their Side Hustle into a Million-Dollar Lifestyle Brand

Learn how you can transform your personal brand into a thriving business empire with co-founders of The Skinny Confidential

Business Plans

How to Change Careers: A Step-by-Step Guide

Want to make a career change without compromising your finances or future? Check out this step-by-step guide on how to change careers to learn more.