Why Marketing Your Business is Essential Even if You Plan to Sell
Today’s fast-paced world means things are changing all the time. This is especially true in the world of marketing. While you may be doing everything you can to keep your content fresh and innovative, it’s hard to have success.
When your plan is to have your business for a long time, though, this isn’t as big of a deal. You may not mind spending the time and energy required to develop and implement a marketing strategy since you’ll be around to enjoy the fruits of your labor.
But some people aren’t in it for the long haul, and they are instead more interested in selling the business. This has become a popular practice these days, especially for internet companies. By focusing on growth, you can increase the value of the company and cash in nicely sometime down the road.
However, planning to sell your business is no reason to look away from marketing. In fact, marketing is probably one of the most important things you need to do if this is your plan. Successful marketing will help raise the value of your company, sweetening amount of money you’ll eventually get.
To show you why marketing remains important even if you plan to sell your business, consider the following:
Brand awareness, recognition and loyalty
One of the core focuses of your marketing strategy will be to build your brand. In today’s crowded marketplace, it’s a tremendous challenge for businesses to distinguish themselves from the competition. Having a strong brand that people can associate with and remember is critical to helping you attract and retain customers.
Including branding into your marketing strategy will require additional focus on content marketing. You’re less concerned with promoting one particular product or service, focusing instead on encouraging people to make connections and associations with your brand.
If you are successful, it will affect the sale of your business in two ways. First, it will make it more profitable, and since the starting number for negotiations in a business sale is usually calculated by multiplying yearly revenues by two and a half, making more money means you can demand more money.
But it also serves as a symbolic bargaining chip when dealing with investors. If you can demonstrate that you have high levels of recognition and loyalty to your brand, you can use this to push the asking price even higher. Investors will be more willing to pay more money for strong brands as they know they can leverage this into faster growth once they take over.
Sustainable lead generation
Something else investors and appraisers will look at when performing a valuation is how you generate new sales. It’s one thing to be profitable now, but if you can’t show how you’re going to continue making money and growing, you’ll find interest in your business will dwindle
A key function of marketing is generating leads. By crafting messages that resonate with people’s position in the sales funnel, and by placing these messages so that they will be received by your target audience, you are helping to increase the contact you have with potential customers.
Investing in developing some sustainable lead generation strategies is a great idea. For example, make sure your site is optimized for search engines, and consider running a campaign to help boost its SEO performance. The majority of traffic to your site will come from organic search, so if you can set your site up to take advantage of this, it will help encourage potential investors to make more enticing offers.
Demonstrating you can bring in new sales is a great way to improve your position at the time of the sale. It lays out the path the next owners will take, and it also provides them with a degree of stability as they take over the business and try to bring it in new directions. All of this makes your business more valuable to any potential investor.
Information about your target market
For marketing to be successful, you need to be constantly evaluating what you are doing. Don’t wait until after a campaign is over to see if it worked. You should already know the results before you reach the official end.
This type of information is obviously valuable to you; it helps you figure out where you went wrong and what you should do again. But it’s also something that can add value to your business in the eyes of investors.
If you can provide them with robust information about your target market, it will be easier for them to see where they can take the business. While they will obviously do their own research, demonstrating you have an intimate understanding of your target audience can only help you.
There are other ways you gather information through marketing as well. The ways in which people respond to your content are good indicators of engagement, and this provides valuable feedback as to how people view your company. By focusing energy on marketing and sending messages to your target audience you are creating a feedback loop that will help you better understand how to run your business.
This will also demonstrate to investors that they will not be operating blindly when they step in. Instead, they will be able to use this interaction to test their ideas for the company, helping them bring the company to new levels.
Marketing is such an essential component of your business. Even if you’re planning to sell, there is no reason to not dedicate time and resources to developing and implementing a marketing strategy. Perhaps your objectives will be a little different when you’re planning to sell, but a quality, dedicated marketing strategy will produce the same results no matter what: a more profitable and valuable business.
About the author: Jock is an online business broker, which means he specializes in the buying/selling and appraisal of internet companies. He has worked in marketing throughout his career, and once he started selling businesses, he realized just how much marketing affected the offers coming in. Jock started his first company when he was just 19-years-old, and he frequently writes about his experiences in business for publication across the web.