5 Ways to Increase the Transferability of Your Amazon Business
No matter how profitable your Amazon business is, you’ll never be able to sell it to a new owner if it isn’t transferable. And while not everyone creates a company with the sole aim of passing it on to a new owner further down the line, selling is certainly a nice option to have. Transferability determines how easily a business could be run by someone other than its current owner or team. If someone new were to take over tomorrow, would it be a smooth operation or a disaster?
The more transferable the business, the more valuable it will be to a potential buyer. So, here are five key ways to increase your Amazon business’s transferability and raise your chances of a profitable sale one day.
1. Diffuse your knowledge
Imagine a salsa company that relied on a “secret recipe” known only by the business owner, who kept it locked away in a safe only they knew the key to — only to die tragically without passing the recipe on.
Even if this firm was raking in millions a year, it would have zero transferable value due to the high dependence on the owner. You might not have such an extreme situation on your hands, but you should still make a conscious effort to diffuse your knowledge to your employees and keep everything in writing.
2. Retain employees where possible
Of course, diffusing knowledge to employees is only helpful if those employees continue to work for you. A loyal team capable of guiding a new owner through the transition period is incredibly attractive to buyers.
You can’t force your employees to stick around, but you can incentivize them to do so by ensuring they’re happy with the company culture and have a generous package. Set up some meetings and do what you need to do.
3. Streamline your onboarding process
No matter how dedicated your employees are to your company and how well you treat them, ultimately, you can’t predict the future or control their decisions. But what you can do is create a thorough onboarding process and training manual to increase the chances of any new hires being just as good as your current team.
4. Work on your branding
If the core selling point of a product or service is that Kylie Jenner runs the business, what happens when Kylie Jenner leaves the business? Chaos.
If you have created a business around your personal brand, don’t panic — just begin the process of shifting to a different company identity.
5. Check your supply chain
Which vendors are you buying from? Do they have a strong relationship with you? How would a new owner affect your current business relationship?
Before you try to sell your business on, you’d best make sure that the deals you currently have in place would still apply for a new owner. Otherwise, your business model and profit margins could take a serious hit.
Go Get That Valuation
Whether you were ticking off a mental checklist knowing you’ve already complied with most of the criteria outlined above or transferability is a brand-new concept to you, you’re probably curious about how transferable — and therefore valuable — your company is.
That’s where we can help. Set up your call today for an accurate company valuation, or test the waters with our free valuation calculator. Alternatively, if you’re interested in purchasing a highly transferable company yourself, consider signing up to our buyer newsletter to be notified about our latest listings.
