We must explain to prospective business owners (buyers) the products and services your business provides and what value you change the marketplace.
Again - a buyer will only buy or pay maximum value if they don't understand your business.
If your business is a service business, you provide a personalised labour service instead of a product as such. Service businesses are businesses like accountants, plumbers, massage and gardeners.
If you are a service business, you must explain the company's services and the associated costs/value per hour or service.
If your business is product-centric - it sells a physical product that you either make or resell, like a restaurant or a retail business, then we need a list of all the products sold and the value of those products.
Also, explain how those products are provided to customers:
"We have a 70% -30% split on in-store purchases and online purchases, and we use a third party (Uberx) to deliver the online products"
"We resell plumbing supplies with 40% gross profit, and we have exclusive".
It might be as simple as a menu or a summary of the product categories. A summary will be sufficient if you are a supermarket with a coffee shop attached.
As we prepare the BIP document for you, we may need to provide supporting documents such as:
*Point of sales breakdown
*Departmental category sales
*Booking information
*Product category breakdown with COG and Gross Profit
We have a series of related and linked questions that we will send once the BIP process is underway.
We need to explain in straightforward terms what services and products your business provides and the costs of those services and products.
We need to document that information within the BIP, so it's easy for the prospective buyer.
Frank Walmsley - March 2024
