It’s no secret that an effective marketing strategy brings in new customers, encourages repeat business, and helps retain existing customers. Many business owners don’t realize the value an established marketing campaign can add to the bottom line when it is time to sell the company.
We regularly encounter two ways marketing adds value when selling a business:
Growing to Sell: Business owners planning to sell in the next three to five years want to receive as much value as possible from the company. In many cases, owners have grown their business through word of mouth, referrals, and their reputation. That’s great until the prospective buyer realizes much of the value resides in the owner’s personal brand, not the business itself.
A strategic marketing plan with a grow-to-sell goal will emphasize the brand rather than the owner, transferring the goodwill associated with the individual to the company name and image. Such a plan takes time to gracefully build the brand while also growing revenue.
Demonstrating Future Potential: In addition to revenue growth, a strategic marketing plan – ideally supported by an established agency partner – provides concrete, proven evidence of growth and an implication that continuing to execute the strategy will lead to more potential and profitability. Any business has more value as an acquisition when processes and systems are in place, yet marketing is often overlooked in favor of back-office functions. Savvy buyers know that an effective marketing strategy brings in more business, supports the sales processes, and will continue to perform after the ownership change.
These are just two examples, and we’ve seen the value play out in real-time as we have helped both individual and corporate-owned companies grow to a successful sale. We have also witnessed clients acquire new locations and either struggle or thrive, depending on the marketing systems they acquire with the purchase. We can convert struggling to thriving, but it’s always faster (and more profitable) for everyone involved if the acquired company already has a proven marketing track record independent of the former owner.
Contact R2R Marketing to add value as you prepare to sell your business.
