When print owners tell me they're ready to sell, they sometimes pause when I ask them about this. When potential print business buyers talk to me, they definitely want to know about it. I'm talking about MONEY!
To put it simply, you need to be able to show your financial position. And it needs to be a good one. Think of it like your report card. Do you want to be embarrassed when you have to show it?
I see print business owners make some common mistakes about money when they decide it's time to sell.
Selling Without Positive Profits or a Well-Managed Cash Flow
Imagine you want to buy a house. Your realtor takes you to a lot, at the ends of a street, where you see a decrepit old house. It's literally falling apart. As you walk through, you realize the inside is just as bad as the outside. Finally, the realtor tells you the homes in the area have been depreciating for five years.
What will be your first reaction? If you’re smart, you walk away and never go back. If you decide you want to buy the property, however, you will certainly ask for a rock-bottom price.
Buyers will do the same thing when they look at your business. The first thing they’ll want to know is if you’re profitable. The second is if you’re cash flowing. These are the critical barometers. If you can show buyers these financials in a clear, organized fashion, then the conversation can begin on your terms.
You Forgot About Generating New Sales
While you may have mentally sold your business, before it's even hit the market, stop dreaming about shuffleboard and retirement. Before you get there, you've got to keep thinking about remaining profitable and have a good cash flow. The driving force behind both of those financial benchmarks is sales.
A disciplined approach works best because if you decide to sell your business, you’re going to encounter lots of distractions. You’ll be pulled in multiple directions. It's going to be like the first day at a new school and you've got to take a pop quiz.
My advice is to avoid these distractions as much as possible. Invest your time today to make your tomorrow.
Focus on what you do best: Building your business. It’s why people are interested in you in the first place, and why they’ll remain committed to you until the day you sell. If you stop improving and trying to grow, your price will shrink proportionally.
Want to take a deeper dive on this topic? Let's talk about your next move. Get in touch at Rock@RockLamanna.com or 561-543-2323.
Additional LaManna Alliance Resources
- Six Things to Consider Before You Sell Your Printing Business
- Why is a Valuation So Important?
- Meet the Innovators
- Great Tool for Business Strategy
- Your Sales Roadmap
- Our 2018 Print Industry Predictions