Owner Rick Bisio wrote an article for Entrepreneur at the height of the pandemic in March of 2021. Many business owners felt defeated about maintaining their long-established businesses and companies for various reasons. Whether affordability was the challenge, many business owners found it difficult to keep their companies afloat as our economy plummeted. In light of the world crisis, Bisio wrote about why preparation is key to selling a franchise or business.
It is important that franchise owners do not get caught up in the daily operations of their business if they want to maximize the value of their franchise upon bringing it to market. Owners should think big picture when it comes to selling. However, along the way is when the details come to play. You can take certain steps that will increase the value of your resale.
Bisio suggests planning your resale from day one, but at least give yourself a few years to maximize the value of your franchise. As a franchisee, you should communicate with the franchisor about the best ways to situate your business before resale. Since many franchisees want to scale their businesses, some franchise brands may have a formal program that will present your offer to people within the business already.
Many of us have heard the phrase, “Failing to plan is a plan to fail.” You can apply this adage to the resale of your franchise. Failure may be harsh for this specific case, but you can expect a smoother, quicker, and higher value of the sale if you plan out your resale. One of the main reasons you will want to prepare for your resale in advance is that you will have to present a few years of clear and clean proof of sales.
The revenue your business generates is a huge selling point that could add value and attraction to your franchise sale. Transparent financial records can show potential buyers gaps in your profit margins. Planning can mitigate these gaps, and while operating the franchise, the franchisee should try to fill in these gaps if they want to add value to the future sale.
From the moment you purchase a franchise, you want to improve the business to sell at a higher cost. The ultimate goal is to exceed your initial investment while enhancing the franchise at the same time. The win-win is obvious. Click here to check out the complete article and get insider tips from business owner extraordinaire Rick Bisio on Entrepreneur.com.