As the owner of an electrical services business, you know better than anybody that the industry is both a necessity to the general public and extremely lucrative. Worth 160 billion dollars and employing over 650,000 workers, electrical services are a consistent need in our society and the numbers reflect it. Whether you are planning to retire or want to try something new, if you’re planning to sell your electrical services business, now is a great time to do so.
Smart buyers generally buy businesses at the height of their success and luckily for you, electrical services are always in demand. However, selling your business requires careful planning and methodical decision making, especially in this region-based industry. Consider the following guidelines when selling to get the best outcome for your hard-earned business.
Determine Net Worth
While your business may have a set numerical value based on revenue and profits, your worth is much more than the sum of its parts. Consider your customer base, employees, and success within your region to determine how much your company is actually worth. This number is frequently referred to as goodwill, which are the aspects of a company that aren’t easily quantifiable.
This number will be important when determining your net worth, especially if your company is essential to your region. Identify what separates you from your competition and work with an accountant to determine the full net worth of your business. Take a look at the other businesses in this sector and see how your valuation compares.
Assemble a Team
Selling any type of business can be laborious, complicated, and time-consuming. Between screening prospects, compiling tax information, and ensuring all legal matters are covered, the entire process can be too much tackle alone. That’s where your team comes in. If you haven’t already, hire a business broker, an attorney, and an accountant to make the process as easy and profitable as possible.
These resources will help compile necessary paperwork, advertise your business, negotiate, and handle several other details that may otherwise fall through the cracks. While it may seem like just another cost before putting your business on the market, these experts will help you get a better profit in the end. While it may be more money now, the end result is worthwhile.
Consider Competitors for Buyers
It’s common for customers to choose and rely on electrical services companies based on where they live. This means that each region likely has a few key players that are always in direct competition with one another and you should use this to your advantage when scoping out prospective buyers.
If one key player drops out of the area, that means the remaining businesses get a much larger market share. To achieve this, your competitors may be your best bet for a highly profitable sale. Not only will they obtain access to your current customer base, but they’ll have less competition for new customers as well, meaning they have much more incentive to buy your business than someone else. This can lead to top dollar asking prices and a mutually beneficial outcome.
According to BrightLocal, 92 percent of people search online for local businesses. To capture customer interest in our digital-first society, it’s essential to have a fully optimized digital presence. This will be a priority for any buyer who does not want to build from scratch.
Ensure you have a mobile-friendly website, are optimized for local search, and have social media accounts that are active and properly set up. Not only will this drive increased traffic and revenue, but having a digital presence will solidify your credibility and authority in the space. Not to mention, a strong digital strategy will set the next owner up for long-term success.
In addition to setting your business up for online customers, leverage a digital presence to find prospective buyers as well. Online listing sites like BusinessesForSale.com advertise your listing in front of thousands of interested buyers. Your business broker can help you navigate the best platforms for your specific business.
Selling a business is no easy task, but fortunately, your thriving industry has set you up for success. Leverage your regional position, expert resources, and goodwill to stand out to prospective buyers and ultimately, make an exceptional profit from your years of hard work. For more information on the electrical services industry, visit BusinessesForSale.com for advice and tips.