Should YOU upgrade.. Equipment or Appearance to help sell the business ?

Don't spend a cent !

We at Business Interests are often asked if various improvements will help the sale....

In most cases it has to be don’t spend a cent! you probably will not increase the value of the business dramatically, as the main factor determining price is profit.

In fact it sometimes helps the sale when we can point out that there may be improvements the purchaser can make to enhance the business!

It usually takes some time for any improvements made to be reflected in the bottom line.... my advice generally is if you intend to sell within a year you probably will not reap the full benefit of the improvements made and possibly not recover the costs.

Over capitalization is a common problem with all types of business, much like spending a fortune on home improvements in an area, which will not recoup the money spent when sold.

Businesses should only have money spent where there is a realistic expectation of an increase in profit in proportion with the amount of money and time to be spent.

Leave the improvements for the new owner... they may have different thoughts on what is needed