You built a solid ecommerce company. You put in countless hours. You’re proud of what you’ve accomplished, but you want to move on. You’ve decided to sell your business.
What can you do to maximize the sales price?
Think about it from the buyer’s perspective.
Buyers view your business as an investment. They are calculating how quickly they can recoup their investment and much more money they could make.
In short, they are most interested in cash flow. They are looking to invest in a company that will produce more cash than other alternatives, including other businesses.
Profit is different than cash flow. Profit includes noncash expenses such as depreciation on fixed assets. Potential buyers care more about the cash that ends up in the bank.
Here are four actions to boost the cash flow of your business.
4 Ways to Boost Cash Flow
Raise prices. Small business owners are often hesitant to raise prices because they are afraid of losing customers. This may be true for commodity items that are sold in many places. For those items, customers can simply go somewhere else to get the same product at a…