Hey Julie! This is a great question!
If a business owner wants to start focusing on selling their business within the next 3-5 years there are two numbers I would start prioritizing - Net Profit and Close Rate.
Net Profit: Because this is the single most critical number buyers care about. A high, stable, and clean net profit increases your multiple and makes the business more attractive. They’re not buying revenue – they’re buying earnings. How do you get there?
Close Rate: Often overlooked but this is critical because it gives you a birds-eye few to the systems in place by the business. Because high close rates show that your sales system works, your marketing is dialed in, and your service has demand – all attractive to a buyer. If the number of estimate requests is high enough that you need one or two sales people NOT the business oiwner to run quotes, then this shows your marketing system has also been perfected.
At the end of the day, buyers aren’t just purchasing a business – they’re buying predictable profit and a proven sales engine. Nail your net profit and close rate now, and you’ll be in a powerful position when it’s time to sell.
