Even if you are not actively selling your franchise, keeping your business in great shape for your next business valuation will make sure it’s a great one.
Even if you are not actively selling your franchise, keeping your business in great shape for your next business valuation will make sure it’s a great one. Business valuations can make or break your franchise sale. They are determined by your financial standing, including any kinds of credit or investments made in the business’s name. Business valuations also include the quality of the property itself. Real estate value will come into play for your business valuation.
Keep an Eye on Updates in Your Location
For any real estate investment, location can account for a large part of the valuation. Good locations for franchises offer great foot traffic, accessible transport, and similar businesses. It can be a huge positive to be the only trampoline park in a shopping center, but if people only go to the shopping center to eat, you may never get walk-in customers. Your target demographic should be a part of your location research. If you target young professionals, it could help your franchise be located near an office building. Locations can make or break a deal, so be aware of what businesses come and go.
Steady Profits and Recurring Income
Depending on the business, your franchise may develop recurring income. Monthly subscriptions are a great example of recurring income. Business valuations calculate the value based on the condition of the business and financial standings. With recurring income, your financial standing is a bonus to any potential buyer. Instead of relying on consistently selling individual items like a burger, your business can work on retaining subscribers.
Market Research is Your Friend
During the lifespan of your business, your target demographic is bound to change. Keep up with what your customers think of your business with surveys and online polls. Local franchise businesses can run their social media how they want, making it possible to create a relationship with your audience. Market research is simply asking your customers what they like about your business. Make it easy for them to make suggestions and see how much more connected they will feel to your business.
Buy With Atlantic Business Brokerage, Inc.
At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match. Contact us to discuss your business buying and selling goals today at 410-561-9800 or Toll-Free at 800-279-7569. Email us at [email protected], and follow us online on Facebook and LinkedIn.