No business can truly succeed without quality employees. No matter what industry you’re in, you need employees that are capable and caring. And of course, the opposite can happen as well. We’ve all heard horror stories of businesses broken by a handful of key employees who either don’t care or are actively working against your success. But did you know that the quality of your employees is not just a factor in your operations but also when selling your business?
In a recent Forbes article, they stated “One of the most important components when evaluating a business for sale is investigating its employees.” That means potential buyers will be looking closely at your workforce. And if buyers are looking, then sellers should make sure you’re looking at it first. Consider the impact of your employees and concentrate on building a great team before you begin the process of selling your operation.
The Employee Factors
Here are some key questions you might ask when evaluating your business in light of the employees:
- How much does the owner try to do it all, or how much do they rely on their workers?
- Which employees are key to the success of the business?
- What do they know that needs to be passed on to others or recorded for institutional memory?
- How much current value do they bring to the business?
- What is their potential value in the future?
- What would happen if they left or went to a competitor?
If you as a seller don’t have good answers for these questions, the buyer will be concerned. Therefore, it’s important that you build your team in a way that not only maximizes their effectiveness, but also makes your success systemic so that it can survive the loss of key employees. That way, when a buyer looks closely – and you know they will! – they’ll love what they see.
CGK Business Sales has extensive experience in selling businesses in Nashville, TN as well as locations nationwide. With our contacts, our sales process, and our advice, you’ll have the best possible chance of selling your business for the price you deserve. Contact us today for a completely confidential, no-obligation conversation.