Due to the unyielding consumer demand for their services and their relative stability, auto shops are one of the most sought after businesses for investors. They’re a great business opportunity for new and established entrepreneurs alike since the auto repair and services industry experiences sustained growth year over year.
If you currently own an automotive business but are looking to sell your auto shop, chances are you’ll have no shortage of interested buyers. But before you put your business on the market, it’s important to get a professional business valuation to determine where you can improve.
Once you know what your business is currently worth, you can then begin looking for ways to add value. And when you add value, you can maximize the sale of your business to command the best asking price possible. Curious what you can do to increase the value of your automotive business before you sell it? The experts at AutoCenter Sales share a few tips below.
Improve Your Marketing
To maximize the value of your auto shop, a strong marketing strategy is key. If you don’t already have one, start with a basic website that includes general information like your hours of operation, the services you provide, coupons, and other info about your business.
If you don’t have a social media presence, now is the time to create one. Claim your social media pages and post content consistently — a couple of times a week should suffice. You’ll also want to claim your business on major search engines and create pages on public review websites like Yelp, Angie’s List, and the Better Business Bureau.
Once you create a presence on these sites, you can ask customers to leave reviews about your business. Online reviews not only promote word-of-mouth advertising, but they also help with search engine rankings and your business’s overall public exposure.
More exposure typically yields more business, which naturally brings in more revenue and helps maximize the value of your business.
Build More Profitability
The main concern of someone purchasing a business is whether it will be profitable. So, one way to increase the value is to increase the profitability with customized systems and resources. The lower you can make your expenses, the higher your income you get, and the more likely someone will find your business a desirable purchase. Having various forms of income that are recurring as well as dependable will offer peace of mind to the purchaser because they know there is a system in place that already brings in funding.A few steps towards higher profitability include:
● Knowing what your hard and soft costs are will also help you enhance your profitability because you can keep your focus on having the products priced, so they attract potential buyers and eliminate waste.
● Investing in the morale of your employees is also going to help increase profitability. This is because if they enjoy their work and what the company offers, it means less time and money spent on training new people.
● Having sales goals in place can also help establish a constant objective and support the future owner's bottom line.
● Invest in a customer-support system to resolve issues more quickly and efficiently.
● Make sure your customers know the product and services you offer are based on honest and legitimate solutions.
Have a Plan in Place
When someone is stepping in to purchase your business, they want to know that it is going to be able to run efficiently without you. One way to help give them confidence they are investing in an established company is to make sure you have a forward-thinking, realistic, and strong business plan. A well-thought-out system will increase the business's value and help create a unified vision for the company's future because the results show in the numbers you provide potential buyers.
Improve Your Curb Appeal
The way your building and grounds look makes a lasting first impression on passersby and potential customers. Would you have your vehicle worked on a shop that looks like it’s in poor condition? Probably not.
People are generally wary of businesses that don’t maintain their buildings or properties simply because they don’t look professional. If you can’t be bothered to maintain the exterior of your business, that essentially signifies to potential customers that you can’t be bothered to do quality work either.
If your building’s exterior is already in good shape, you may not have to worry about making improvements to your curb appeal. But if you’ve neglected landscaping and other exterior updates like periodic painting and repaving, it’s time to take care of those issues. If you’re looking to maximize your asking price when you sell your automotive business, boosting your curb appeal can go a long way.
Diversify Your Suppliers
Expensive parts and other supplies can eat into your profits and negatively affect your auto shop’s numbers. And when prospective buyers review your figures, those expenses will inevitably drag down the value of your business. That is why supplier diversification is essential. You need to ensure you’re optimizing the cost of goods sold in your business.
Having a diverse supplier base allows you to negotiate contracts to ensure fair pricing on parts and other materials. You can shop around if prices are too high for your liking because you have several options to choose from. A diverse supplier base also signifies to prospective buyers that you’re always on the lookout for ways to maximize the business’s profits, a hugely appealing factor.
If you’re unsure how to go about diversifying your suppliers, working with an automotive business broker (AutoCenter Sales is an excellent choice) can help tremendously. Brokers typically have an extensive network of industry contacts and can point you toward the vendors you need. Furthermore, they can help you determine where your numbers are out of line with industry standards and make recommendations for improvements.
Planning to Sell Your Automotive Business? Get in Touch With AutoCenter Sales
If you’re working on an exit plan from your automotive business, let our team at AutoCenter Sales help make your sale as smooth, stress-free, and lucrative as possible. For over 25 years, we’ve helped automotive business buyers and sellers throughout the United States negotiate lucrative deals, and we’re ready to help you too. To learn more about our services or discuss your upcoming business sale, give us a call today at 1-800-874-5793 or contact us online.