You’ve built your business into a profitable enterprise. After years of long hours and hard work, you’ve decided it’s time to move on. You want to spend more time fishing and exploring the open road on your new Harley. It’s time to sell your business. Do you know how sellable your business is?
Even if you are not planning to sell your business for years to come, it is important to keep your business on track for the day you are ready to sell. There will be enough stress in your life when it comes to sell, so it never hurts to be prepared.
One important question you should ask yourself when you are thinking of selling your business is “what processes do I use?” Or another way to ask this question is “How painful will it be for a buyer to take over my business?” Do you have processes set up for how your business is run? Could someone easily get the hang of a day in the life of you, as the business owner? Or do you have a process that only you are able to run?
We recently completed a survey of business owners. We asked a series of pricing questions, and one of the comments we received was "I'm 100% involved in all aspects of everything." If you're like that contractor, you're going to be in trouble by the time you want to exit your business. Why? Because instead of having well-defined processes, you have one person who is responsible for everything. Which means if you take that person out of the business, it stands to reason that it's going to flounder. Which makes it unattractive to a buyer.
As odd as it may sound, investing in irrigation software will actually help you in the long run when it comes to selling your business, because it will provide your entire company with a process for how the business will be run, allowing everyone to be on the same page as well as allowing a potential buyer an easy transition into taking over the company. Irrigation software is a great selling tool for a couple of reasons:
- Everyone on the same page. A field service software program allows all of your employees to be on the same page, from office staff to field workers. A new owner will not step into the business having to figure out how each employee does their job because irrigation software gives them a process that they follow day in and out.
- Complete company history. While you may not have had your software from the get go, some history is better than no history. A new owner will be able to have a complete list of current and past customers as well as detailed data as to what and when work was done on their properties.
- Proof of finances. While field service software usually cannot give you an overview of balances and profit-and-loss statements, most will easily integrate with an accounting program like QuickBooks placing the information in an organized and easily accessible format. This will allow you to gather any information potential buyers may ask for, quickly and easily.
- More profitable. Our Green Industry Benchmark Report found that businesses using field service software were much more likely to have seen year-over-year revenue growth and less likely to have experienced a decline in revenue. In essence, field service software made them more profitable. And you know what buyers love? Profitable businesses.
The most important thing to take away from having irrigation software is that it will provide you with all of the data you need to have both efficient processes and to work on bettering your business. It has also been noted that some past business owners feel seller’s remorse after they sell their business. They aren’t sure what to do with themselves and will often worry if their business and employees are being taken care of. Irrigation software leaves business owners who sell their business with a sense of security. Processes have been left in place to ensure the business can continue running as long as no major changes disrupt the daily life of the company.
Another way to help sell your business is by growing your revenue. A strong field side to your business is the perfect way to do just that. Not sure where to start? Check out HindSite's 6 Simple Things Your Field Techs Can Do to Grow Your Business.