Is It Worth It to Invest in An Advisor for Your Small Business?
Small businesses are extremely susceptible to the peripatetic nature of different markets. A product or service could lose its value at the drop of a dime. Whether it’s the changing tides of a neighborhood and rent is too high, or a larger company with an acquisition proposal has approached you or maybe you want to acquire another company yourself, having an advisor for your small business is crucial in determining what the next steps should be. Many of these advisors have years of experience to help your company make the necessary decisions that maybe you are having trouble making yourself. However, the biggest question is whether or not it’s worth it to invest in an advisor for your small business in the first place. Here are a few common situations that small businesses might find themselves in, and if they apply to your company, it might be smart to invest in an advisor.
- You have reached a certain point, whether because of age or other personal factors, you want to sell your business. But how do you make your business look the most attractive to a potential buyer? A business advisor will help you do this by suggesting a number of upgrades so that you can maximize your selling price. They will first look at your books to make sure you are in good financial standing order. If you have debts they will help make sure to equalize them so that your buyer isn’t left paying all your outstanding loans. Then they will look to make sure you don’t need a paint job or a tweak on the aesthetic branding. You want to make it look like you are leaving your business at a peak and not at a plateau or in shambles.
- An advisor can also help a small business find a potential buyer. For instance, Selby business advisors will reach out to their own network of people for a possible interested party. They will also market your business so that possible buyers come knocking and they will also vet the possible buyer for their financial standing in order to make sure that they meet the fiscal requirements to purchase your business.
- A good advisor will also help you close the deal and get the best price. For instance, they can help the seller prepare the business for closing – organizing payouts and severances to employees and closing accounts while the buyer is often looking for financing to make the final deal. They will also keep the buyer appeased and help look for financing in case there is a certain amount of “buyers jitters.” A lot of buyers of businesses are putting a lot on the line and they want to know that their investment is secure and worth it. An advisor will work with the buyer to make sure everything goes as smoothly as possible so that the seller can make the big transition, because selling a business can be an emotional experience for the seller and the buyer.