The more you know about the market and the more you prepare your business for sale, the easier it will be to set realistic expectations and have a successful sale. Pat Nolan, a franchise business owner from Austin, is a great example of how careful preparation, strong marketing and an adaptive financing approach can attract more potential buyers and ultimately lead to a higher sales price.
Prioritize Your Exit Motivations
After 30 years in the corporate world, Pat wanted to spend some time in a community-based business. He decided to skip the hassle of hiring and managing multiple employees, and narrowed his search down to single owner operator businesses. During his search, Pat came across the Canadian franchise Bin There Dump That, which provides residential size dumpster rentals for people renovating their home, downsizing, cleaning, etc. The franchise was looking to expand into the United States and Pat decided it was an opportunity he’d like to pursue.
After a hands-on training session at the Bin There Dump That headquarters, Pat became one of the first Americans to open a Bin There Dump That franchise in the U.S. Business quickly grew beyond expectations and within four years, Pat was already struggling to manage his Austin-area business all by himself. He found himself at a crossroads. He could either expand his branch into a full-fledged company with more trucks and workers, or sell and enjoy retirement. Pat decided the best move was to find a quality buyer who could grow the company even further.
Lesson #1: Even if your business exit is much further down the road, it is important for owners to determine what could make them decide to sell. Are you simply looking to exit at the highest price? Do you want to retire soon? Do you value free time over an increasingly time-consuming business? Knowing what will motivate a sale can help owners prioritize their goals and better time their exit. It’s typically best-practice to create an exit plan and timeline when you start your business and update it yearly based on your current priorities.
Organize Necessary Information for Buyers
After getting a few tips from the Bin There Dump That franchise leadership team, Pat started to prepare his business to be listed for sale. He did his own research online and used the