Since the COVID-19 pandemic has become global, the world’s stock markets have been hemorrhaging cash. According to an estimate, nearly $15 trillion has been lost so far. Wall Street has also had the worst one-day loss since Black Monday in 1987.
All of this financial loss begs the question, “What should you do as a business owner?” At this point, you probably want to take the money and run. However, the financial crisis and the pandemic are both temporary. Hence, with a little level-headed thinking, you can arrive at the best solution. When putting up your business for sale or investing in something, you need to think carefully.
Tips to Coronavirus-Proof Your Business
Making sure that your business is operating smoothly during coronavirus is crucial, especially when you put the business on market for sale. You may or may not take some losses but that’s okay. As long as your business does even marginally well and stays afloat, that is a sign of strength. You will be able to attract more buyers right now since they are looking for a sign of certainty during this time of uncertainty.
Double Down on Sure Markets
So, the first thing you need to do is get hold of the most certain markets. It is not the right time for experimentation. It’s tragic that so many businesses are taking a loss and running out of steam. However, during this time, you need to look to businesses that have always turned a profit. This is not only to secure your future, but your employees’ future as well. It will secure most of their jobs and ensure your business stays afloat. That will, in turn, restore confidence in your customers and any prospective buyers.
When you market your business for sale during this time, or at least want it to flourish, that’s the way to start. Any vendor that you approach for selling your business should at least have the confidence that you’re making smart choices.
Focus on Your Most Successful Offerings
In this uncertain time, offer your customers services that they have depended on for a while. This means that your most popular and profitable products and services should be more aggressively marketed. At this time, people are looking to things that were consistent in their lives. This could include their favorite foods, TV or Netflix shows, social media browsing, books, tools, hobbies, etc.; anything that reminds them of normalcy. If your service is a part of that experience, right now is the time to cash in. You shouldn’t aggressively raise prices, of course; that’s taking undue advantage of the current situation.
However, you should market your services in a way that gives the customer a familiar feeling during these uncertain times. For instance, you can remind them that you’re still active during the COVID-19 pandemic. You can also remind them that you’re not going anywhere, even though many companies and services have shut down. All this bolsters and strengthens the trust that is already built between you and the customer.
Delegate Resources to the Essentials
This is definitely not the time to experiment. With stock markets crashing and people pulling their money, they want solid products that aren’t new or untested. Hence, you need to aggressively offer products and services to your customers that have worked for a long time. Any product launches or new features that were supposed to be rolling out should be cancelled as of now.
By doing this, you’ll be able to delegate resources mainly towards your most popular products and save money. Not only that, you should also discontinue or temporarily postpone any subscriptions you’re not currently using. Any services that you have, which aren’t being used right now, but cost monthly premiums, should be put on hold.
It’s really as simple as that. What this will show potential investors and buyers is that you have a system in place to “batten down the hatches”. It will show them that your business knows how to conserve money and other resources during tough times.
Productise Services If Possible
Products matter during this time more than ever. Services can’t be counted on at this time since customers can’t hire them. If customers have something installed on their computers or if they have something tangible, it feels more real than hiring a service. In saying that, some service businesses are expected to be very busy when the pandemic slows down such as pet groomers, hairdressers, hospitality businesses, beauty/nail salons ( *women love to feel and look beautiful in any economy perhaps men too. ) and some other services which make people happy and feel normal again. However, pandemics like COVID-19 make most services seem like transitory, fleeting and uncertain. Hence, if you can productise your services, then this is the best time to do it.
You can offer mass sales or discounts and you can also offer specific deals. For example, if you have inventory to get rid of, or expiring offers, right now is the best time to market them at low prices. Start with one, and if all goes well, you can double down on it.
Hiring a Broker to Put Up Your Business For Sale
If you want to sell your business today, in the midst of the coronavirus, a business broker is the way to go. You will be asked hundreds of questions in this climate of uncertainty. Let someone that has had all these conversations before doing it for you.
It’s much better than having to dodge and duck questions that you weren’t prepared for. Also, during this time of panic, investors may or may not listen to you, no matter how convincing your case is. Brokers are trained in the art of business persuasion; they know the magic words that potential buyers need to hear.
Serdar Kabul Can Sell Your Business
If you’re looking for a knowledgeable business broker to sell your business for you in New Zealand, contact me now, Serdar Kabul. Having established import/ distribution businesses from scratch and then selling them, I know what it takes to sell and buy businesses successfully. Pick up the phone and call me or simply just email me to discuss.
Also remember that this is my way of showing you I am still here business as usual. As you can tell we are still operating to help business owners to exit their businesses successfully and it is still happening. Nowadays, the technology allows us to get the deals done remotely via online signature apps and video platforms. There is no such a thing as a right time. Today is the right time to take an action. If I can do it, so can you!!
Let’s have a chat!
By Serdar Kabul
Business Broker