Think Like a Big Business…and Sell Your Business for More Money
“I don’t want to grow my business any bigger – it’s a lifestyle business.”
“It’s just a small business so we don’t need – or want – loads of paperwork and processes.”
“I have got a firm grip on the financial aspects of my business –it’s just that the spreadsheets are in my head!”
If you’re nearing retirement or simply happy to keep your company at its current size, you probably aren’t running it like a big business. Why would you? Why should you?
As the owner of your business, maybe you don’t feel you need to put as many rigorous processes in place as a big business would. “What’s the point when the team is so small?” you might wonder. As for documenting those processes, who’s got the time?
Your finances might be healthy in practice – but how well can you evidence it on paper? Perhaps one of the reasons you started a business was to avoid all the cumbersome administrative obligations of a larger organisation. Your contracts might be verbal, or you just haven’t got around to updating them.
However, when the time comes to sell your business, how will you show a potential buyer what a successful company they’re about to take on? That’s why we advise businesses of every shape and size to think like a big business – and get organised!
Run your small company like a big company
Even if you’re years from selling up or your aspirations are modest, running your business like a larger organisation will make it more predictable – and ultimately a whole lot more attractive when it comes time to sell. Formalising your operations today will show what your business could look like tomorrow – and that will allow you to give your buyer confidence.
Adopt big business best practice such as proper record keeping, clean books, written contracts with customers, staff and suppliers, and protected intellectual property. All these features are green lights to smart buyers, and they’ll often pay more for companies when they are organised, compliant – and less risky. When it does come time to sell, you’ll fetch more for what you’ve built – and you’ll feel more in control of the day to day running of your business in the here and now.
Let this story inspire you
Jay Steinfeld is a great example of how to run a small business like a big company and reap the benefits. Steinfeld studied Accounting at the University of Texas and joined KPMG after college. His wife owned a small retail store selling blinds and window treatments. The store was successful but, inspired by the success of a certain company called Amazon who were having great success selling books online, Steinfeld wondered if he could get consumers to buy blinds online. Soon after, Blinds.com was born.
Many first-generation online companies that were typically run with few financial controls, but Steinfeld grew Blinds.com like an accountant, running the business with the same rigor as a larger company by:
- building an experienced management team
- assembling an outside board of directors, even though Blinds.com was a small, private business and Steinfeld owned all the stock
- holding quarterly board meetings, where senior managers were asked to prepare and deliver formal presentations
- hiring a ‘big four’ firm to complete a full audit of his financials each year, even though all he legally needed was a simple tax return
By 2014, Blinds.com had grown to 175 employees and, and at more than over £77 million in revenue, was the largest online retailer of blinds in America, outperforming U.S. retail giant Home Depot. This made Blinds.com and irresistible acquisition proposition for Home Depot, especially coupled by their fastidious bookkeeping.
When Home Depot announced its acquisition of Blinds.com, it made Steinfeld and his wife very wealthy indeed.
Helping you evaluate, prepare and succeed
Entrepreneurs Hub is a boutique corporate finance company that supports business owners to grow, prepare and sell their business to maximise value.
If growing or selling a business in the future is on your agenda, then why not consider a highly valuable Shareholder Business Evaluation Session? An Entrepreneurs Hub Director will meet with you for approximately 3 hours to:
- independently review your business, with no obligation and in the strictest confidence
- assess how you can improve saleability by improving your processes and reporting
- identify any barriers to growth and exit, such as inconsistent bookkeeping
- discuss valuation methodologies and current models for valuing your type of small business
- talk through your exit plans and options, including the best time to sell your business and how to get it to that stage
After the meeting, we will provide a highly valuable Entrepreneurs Hub Shareholder Options Report with a guide valuation range of how much your small business could potentially be worth.
Ready to think like big business and sell your business for more money? Contact our friendly and experienced team in confidence to arrange your free Shareholder Business Evaluation Session.
Download the full eBook – SELL – The 30-Minute Guide to Preparing Your Business for Sale
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FAQs – Selling Your Company
How do I sell my business in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued by applying a multiple to its sustainable profit, often EBITDA or adjusted net profit. The appropriate multiple depends on factors including growth, recurring revenue, customer concentration, management strength, owner dependency, market conditions and buyer demand.
Determining what your business is worth involves more than applying a simple formula. Use our Business Valuation Calculator to obtain an initial valuation range, or read our simple business valuation guide to understand the factors buyers consider.
How long does it take to sell a business?
Selling a business in the UK typically takes around 12 to 18 months from initial preparation to completion, although some transactions may be quicker or take longer. The timeline depends on business readiness, buyer demand, deal complexity, due diligence and how quickly the legal terms can be agreed.
Preparing accurate financial information and organising key documents in advance can help reduce avoidable delays. Read our complete business sale timeline to understand what happens at each stage.
When is the best time to sell a business?
The best time to sell a business is usually when it is performing strongly, its future growth is clear and you are not under pressure to complete a sale. Buyers are generally more attracted to businesses with rising or stable profits, reliable financial information and credible opportunities for further growth.
Business owners are often in a stronger position when:
- Revenue and profits are growing or consistently strong
- Financial records are accurate and up to date
- Future growth opportunities can be clearly demonstrated
- The business is not overly dependent on the owner
- There is a capable management team in place
- The owner has started preparing well in advance
Market conditions can also affect buyer appetite and valuation. Factors such as sector growth, access to finance and competition between buyers may support stronger deal activity, but preparation and business performance are usually more important than trying to identify a perfect month to sell.
Ultimately, the best time to sell is when both you and the business are ready, and the company can demonstrate sustainable performance and future value to potential buyers.
Use our Exit Readiness Tool to assess how prepared your business is, or read our guide on when to sell your business for further guidance.
Do I need an adviser to sell my business?
You are not legally required to use an adviser to sell your business, but many owners appoint an experienced M&A adviser to help manage the process. An adviser can prepare the business for sale, identify and approach suitable buyers confidentially, coordinate negotiations and support the transaction through due diligence.
The right adviser can also help create competitive tension, protect your time and reduce the risk of avoidable mistakes. Read our guide to choosing the right business sale adviser to understand the different types of support available.
How do I prepare my business for sale?
Preparing a business for sale involves strengthening its financial performance, reducing risk and making sure it can operate successfully without heavy reliance on the owner. Buyers will also expect accurate financial records, clear contracts, organised documentation and evidence of future growth.
Preparation should ideally begin well before approaching the market, giving you time to address weaknesses that could affect value or delay the transaction. Use our Exit Readiness Tool to assess how prepared your business currently is.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymised buyer approaches and non-disclosure agreements. Potential buyers usually receive limited information at the start of the process and must sign an NDA before commercially sensitive details are released.
Prospective buyers should be assessed before receiving further information, with documents shared gradually according to their level of interest and credibility. A well-managed process also allows the business owner to retain oversight of who is approached and what information is disclosed.
What documents do I need to sell my business?
The documents needed to sell a business commonly include financial accounts, management information, forecasts, customer and supplier contracts, employment records, tax information and evidence of intellectual property ownership.
Buyers may also request details of property, insurance, legal disputes, regulatory matters and company ownership. Organising this information before due diligence begins can reduce delays and help maintain buyer confidence. Our Business Sale Due Diligence Checklist explains the main information buyers are likely to request.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…
How can I increase the value of my business before selling?
You may be able to increase the value of your business by improving sustainable profits, developing recurring revenue and reducing reliance on individual customers or the owner. Buyers also value capable management teams, reliable financial reporting, scalable operations and clear opportunities for future growth.
The earlier you identify the factors affecting value, the more time you have to make meaningful improvements. Use our Business Valuation Calculator for an initial indication of value and our Exit Readiness Tool to identify areas that may need attention.