Are you thinking about putting up your computer repair business for sale?
Or are you on the other side of the table and looking to buy an existing computer repair business for sale?
Either way, don’t let this major transaction be an afterthought. Planning ahead is key for buyers and sellers alike.
Future planning and especially having an exit strategy is something many computer repair business owners don’t necessarily think about as they build their companies. However, you have to think about how you can make your business not only profitable, but also appealing to future buyers once you decide it’s time to move on, for whatever reason.
The following 3 tips can help you develop an exit strategy so you are ready once you decide to move on and put your computer repair business for sale. And if you’re looking to buy an existing business, consider this a quick checklist of what determines tangible value.
- Set Your Prices Right from Day 1. Many new and inexperienced owners make the mistake of charging too little, often WAY too little, for their computer repair services. One of the biggest causes of this is a copycat billing rate structure. New computer computer repair business owners often will find out what a competitor is charging down the street and will simply charge the same, without looking at the company’s business structure or whether that rate really works for their specific type of business. Also, how do you know this competitor knows what he/she is doing when it comes to setting prices? And do you know anything about this competitor’s technical competence? You need to determine your own pricing structure based on sound financial projections and your value proposition. And make sure that your pricing structure makes your business profitable and thus appealing to future buyers once you decide it’s time to put up your computer repair business for sale.
- Focus on Getting Clients … Not Customers. New and inexperienced computer repair business owners often spend a lot of time chasing down one-shot deal customers, keeping their fingers crossed that these people will call them in a few months or a few years. Your business is not going to be successful or appealing to future buyers if you base your services on the needs of one-shot deal customers. Spending all that time and money acquiring customers for tiny, unpredictable projects is not going to be financially lucrative. A computer repair business that offers on-going service agreements will grow a stable client list and have recurring revenue and predictability, as well as the ability to hire more staff. And all of these benefits will make the business very appealing to those that might want to buy it when you need to or want to get out.
- Create Curb Appeal for Your Computer Repair Business for Sale. If you’ve ever watched one of those real estate TV shows that detail how they fix up a home about to be sold to make it more appealing, you’ve probably heard the term “curb appeal.” However it’s also easily applicable to a computer repair business for sale. If you ever want to be able to sell your computer repair company – if you move, get bored, get burnt out, get injured or pass away – the list of your clients on annual service agreements will become one of your few tangible assets. For the overall valuation of your computer repair business, you of course need to consult your trusted accounting advisor. But, as an example of how valuable on-going service contracts are, if your company has been averaging $200,000 per year in pure consulting revenue for the past 3 years and ¾ of that ($150,000) is locked in on annual service agreements, you have a pretty nice asset for someone thinking about acquiring your business at a multiple of your overall gross revenue. On other hand, how much do you think a competitor would pay to purchase a list of one-shot deal cheapskate customers that just call once in a while? Without on-going service agreements, you are starting from scratch every single month. You need to cultivate your list of service agreement clients to prepare a very desirable computer repair business for sale… one with curb appeal.
In this article we talked about 3 ways to make your business more appealing for sale and plan for an exit strategy. Learn more about how to succeed on either side of the table with a computer repair business for sale that attracts great, steady, high-paying clients now at http://www.ComputerRepairBusiness-ForSale.com
Copyright (C) ComputerRepairBusiness-ForSale.com All Rights Reserved
About the Author:
Joshua Feinberg is the author and editorial director of the Computer Consulting Kit Home Study Course, which helps computer consultants, VARs, integrators, solution providers, and managed services providers get more of the best, steady, high-paying small business (SMB) clients.
Article Source: ArticlesBase.com – Computer Repair Business for Sale? Planning Ahead is Key for Sellers
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