Doing it the Hard Way can be the Best Way
When it comes to preparing your business for a sale, whether a year from now or years down the road, you will generally have two options for an external sale - the financial buyer or the strategic buyer. These can also be understood as selling your business the easy way, or the hard way.
While going the easy route certainly has its appeal - namely, avoiding the headache of a drawn-out sales process - going the hard route may indeed be more beneficial in the long run. To learn why, you must first understand the two types of business buyers.
The Financial Buyer
Financial buyers are interested in buying companies for fairly straightforward, easy-to-understand reasons. They are buying the rights to your future profit stream, so the more profitable your business is expected to be, the more your company will be worth to them. Strategies that are key to driving up the value of your business in the eyes of this buyer include taking out as much risk as possible, creating recurring revenue, reducing reliance on one or two big customers, cultivating a team of leaders, and so forth. These buyers see what they're getting, and