The Importance of Big Data in Selling Your Business
Everyone talks about big data in the area of sales and marketing, but the data collected by you, your industry, and even public information and social listening has many more uses. One less common one is that you can use a great deal of big data to help you sell your business.
How does this work? One of the primary things you need when selling your business is information for the buyer and for any brokerage service you are using. The more data you have, the more trustworthy your claims about the profitability are. This makes it more likely that you will sell your business and eases the process of due diligence.
Here are some vital things big data tells you and your potential buyer about your business.
Who Your Customers Are
One of the most important aspects of your business is that it is viable, which means you need to know that you have, and will have customers. This is why it is vital that you know who your customers are.
However, this information can be anonymized and used to show demographic profiles. This lets the buyer (and you) know who your customers are.
How Effective Your Marketing Is
The next question your buyer might have is if you are actually reaching the customers you are targeting. When you reveal who your customers are, is that the customers you were aiming for, or are they different? How different are they? This can mean two different things.
One is that your targeting is off, and you need to shift it to reach your ideal customer. The second option is that your marketing is reaching your real ideal customer, and you need to shift your aim to reach more of those you already are.
Of course, if you marketing is spot on, your business is easier to sell, as the buyer can simply continue the marketing plan you already have in place.
Your Business Earning Potential
The other thing the data you gather through analytics and other methods will tell a buyer that your business has future and even untapped earning potential. Are you reaching your ideal customer? Is your marketing and targeting right on? Then how many customers do you have the potential to reach beyond your current base?
Are there ways to cut costs and improve your profits? Will volume increase your profit margins or just profit numbers? Data can prove all of that to your buyer. For instance, if you young people between the ages of 20 and 25 are buying your product that aids them with college in some way, what potential do you have to reach more students in this age group? What areas are you not reaching, and how can your product reach those potential customers?
Whatever proves your earning potential, that data is vital to share with your buyer and show them your business is a good and viable investment.
The Future of Your Industry
Beyond the future of your business in particular, what is the growth potential of your industry? If you are working in Virtual Reality, the growth potential is huge in a number of areas. If your business relies on traditional 35mm film, you will have a limited audience and only for a limited time, so it is hard to project growth.
If you are in an emerging industry, there is a lot of data predicting the growth potential. While this may be wrong, it makes purchasing your business a better risk. If you are in an industry that has been stable over the long term, the risk is even lower as you have long term data proving your industry to be stable.
Either way, big data can illustrate the future of your industry, and make your business easier to sell.
Big data is useful for marketing, sales, and other business applications, but it is also useful for selling your business by illustrating its viability, your customer base, and the future of your industry.
Need help navigating the process of selling your business, or have questions? Contact us here at Rogerson Business Servicesfor more information.