How can someone make their management rights business more attractive to a buyer?

Buyers will check for the following:
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1. Reoccurring income
   Buyers like assurance that they will be able to maintain or grow the income from the business.
2. A long agreement length
   Buyers like long-term agreements with a lot of time remaining.
3. The duties that need to be performed to ensure continued income
   They need to make sure the work will get done and what resources will be needed.
4. The systems in place that will automate the duties as much as possible.
   Are there systems in place, or will they have to create them?
5. How well the team performs and if the business requires staff.
   Do they work as a cohesive team to get the work done efficiently?
6. The product (location, room layout, presentation, services, client base) and training that’s offered. All things being equal, systemised and well-documented handover training adds value to your business.​

​The multiplier achieved also depends heavily on the sales specialist you engage to market your management rights.

Over the years, we’ve fine-tuned the process of getting management rights owners the highest multiplier in the quickest way possible.

How can someone improve the value of their management rights business?

​​It’s really quite simple. The more reoccurring income/cash flow your business generates, the more value the bank and buyer will place on it. And the easier, more efficient and automated your income is, the higher
the multiplier the bank and buyer will place on your income. This means you get the double effect of a higher income and less time spent in the business, which equals more money and freedom.

There are also other factors that will increase the value of your business, such as goodwill, a great team and a training system. Two years ago, I offered a higher price for a business, just because I knew that the training the business operator gave me would be worth $50,000, which is the cost of hiring a business coach.

What is the main reason managers don’t take action to improve
their income, and how can they overcome it?

Most managers know ways to increase their income, but many are reluctant to take the key steps in order to get the results they want. The biggest reason is that they feel they don’t have the time to implement these strategies due to their day-to-day workload or constant distractions. In our office, we play a game called ‘Did I win, or did the distraction win?’

I have a four-step plan for getting tasks done in half the time:

Step One
Make a list of all the tasks you do on a daily basis.

Step Two
Prioritise your list to make sure the tasks that make the most impact on your business are at the top.

Step Three
Systemise the reoccurring tasks. Figure out which ones can be done at certain times of the day. For example, taking the general waste bulk bins in the evening

Step Four
​Turn off all distractions. Slice your time into twenty-minute blocks, and get on with finishing the task at hand.

​Once you’re efficient at doing a task, time yourself, and make a training video for your staff. Then you have the option of continuing to do the task yourself or delegating it, so you can focus on income-increasing activities.

​Interested in selling Management Rights? Fill in the form below to get The SIRE Team to call you :)
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