What Sellers Need to Know
Arizona is a popular winter destination for people who live in chilly climates, and spa visits deliver the pampering experience people enjoy during vacations or regular life. When selling medical spas in the Phoenix area, prepare to discuss the flow of money that comes in from the snowbird and tourist crowd with potential buyers. A plan to demonstrate what sets your spa apart from the competition is also a good idea.
Tips for Getting Ready to Sell Your Arizona Spa
There are also some other things you can do to make your business practically irresistible to buyers. Be ready with answers to some common buyer’s concerns, and plan to show the buyer how easy it will be to take over the business.
Know Why Are You Selling the Business
Very few people want to buy a business that’s failing, so why you’re selling is one of the first things you need to be ready to explain, as noted by Investopedia. Plan to talk about things like being ready for a different challenge, looking forward to retirement or whatever detail is true for your situation.
Things That Make a Business Look Good to a Buyer
If you’re selling because the business isn’t producing as much income as you expected, it’s best to tell the truth. The buyer is going to want to see the books anyway. However, lead with the positive things about your business. This gets the buyer emotionally invested and excited about the idea of running a spa. Here are some things buyers might look for.
Positive Cash Flow
Money is a powerful motivator, so if your business shows positive cash flow, that’s a selling point you need to leverage. Have tax information and accounting records prepared and organized. This lets buyers quickly scan the information and feel good about buying. Understand that what a potential buyer considers a good income might be different than the amount you consider a good income.
The physical amenities at your facility are strong selling points. Buyers want to know what permanent and semi-permanent features come with the deal. Things like a steam room, wet room and elegant design elements make the venue more inviting for guests. An inviting setting offers the type of pampering tourists want when spending winter in the Phoenix area. So, let buyers see that the spa is or can become a sought after destination.
What are the most popular services at your spa? Be ready to tell buyers which services attract the most customers and bring in the most money. If your spa is known for its hot stone massage or aromatherapy treatments, let buyers know that. Share testimonials from clients who enjoy your services if possible. This helps buyers who want to add their own touches to the business get a clear view of which services to keep.
An entrepreneur new to the spa business might hesitate to jump into it from scratch. If your well-trained employees are willing to stay on, that eases the transition to business ownership for the buyer. You may even want to offer your own services if you’re willing to stay on to train the new owner or stay on as an employee as part of a phase out plan.
Selling your business is a big decision, and there are a lot of things you can do to close the sale quickly. Have all the information ready and available. Then, ask potential buyers up front what they are looking for in a business. This is the easiest way to find out which facets of your company to point out first. The selling points a buyer values may be different from the ones that appeal most to you.