The events industry is huge with a lot of different avenues that you can go down. Chances are that, if you have been running your business for a number of years, you have made certain events your speciality.
When it comes time to sell your business and cash in on your hard work, you will need to focus on what it is that makes your business different so that you can entice interested buyers.
With the potential for growth in this sector in South Africa, you should be able to find a buyer that is eager to take over the reins. But before you start putting up the ‘For Sale’ sign, here are some tips to prepare and get the best price for your business.
Maximise the value of your business
Focus pushing up the value of your business before you put your business on the market. There are a few different ways that you can do this.
You can focus on the more lucrative types of events. When you’re running a business, its often the case that you don’t choose what to work on solely for money. You may be choosing events that you enjoy and that you are passionate about.
If you’re thinking of selling, though, take some of the events that will bring in more revenue so that you can increase the business turnover. This will look good on the books when a potential buyer takes a look at what they are buying.
If your business is more seasonal, focus on bringing in business that falls at other times of the year. For example, if you have been doing wedding over the summer you may try and do corporate events in winter when you are not as busy.
Having a balanced cash flow will be an important feature of your business if you want buyers to pay top dollar.
Before the sale
You will also need to get your social media and web presence up to scratch. This can entice more customers and make you look more professional with more potential for growth. These are both things that buyers will want to see.
Online visibility is the key for events bookings and so it is important that you get yours up to scratch before you sell. Events are a very visual service so you can really take advantage of social media platforms like Instagram.
Establishing a relationship with venues or companies can ensure that you have repeat business that you can rely on. Having these regular contracts will give any potential buyer a greater sense of stability when it comes to your business.
Codifying the way that you run your business is a vital component of preparation before the sale. Essentially, when you sell, the new owner will need to have a clear idea of how you ran the business.
There will, after many years, be a lot of things that you do out of instinct. Before you sell, though, write this down so that they can be handed over as part of the value of the business.
Marketing your business
You might be a whiz at marketing the events that you put on but marketing a business can be a different ballgame. If you need to keep your eye on the business, it can be good idea to get a broker to help you with the sale.
You can also list your business online if you would like to advertise to a large audience. There will also be plenty of event industry publications where you can advertise your business.
If you want to know more about selling your business, read our selling guides!