Increase the Value of Your Business
Recently, I had an interview with a journalist who was asking me how do restaurant owners increase the value of their restaurants when getting them ready for sale. The one thing I talked in depth about, of course, was the database because I'm a big fan of growing a database and marketing to it.
For example, let's say you have a customer database of 12,000 people and every month you send out 1,000 birthday invites for customers to celebrate their birthday in your restaurant. You track spend and can show that from doing this you've made $1,000,000 over the last 2 or 3 years say. You can prove the link between your marketing activities, the database and your sales figures. Then you have an amazing asset to sell.
When it comes to selling your restaurant, not only will you be selling the fixtures and fittings, you'll also be selling the provable goodwill. You'll be able to show from this marketing strategy over the last year, the number of people who came in, how much money they spent, how much went to net profit which shows the buyer what's possible if they do the same. You are basically proving that going forward they’re going to make money.
Now think about it, which business are you more likely to buy, one where there is absolutely no proof that you are going to make any money or one where you can see that for the last 2, 3 or 4 years, the restaurant owner has made money by consistently marketing to his database. What’s more, if that marketing is managed by a company like us and you don't have to do any of the work - it’s a no brainer - the cards or emails go out, people come in, they spend their money, their money goes in the bank.
You probably wouldn't want to turn off a strategy like that because if you did you would quickly see your sales drop and you'd see for yourself which kind of restaurant you want, and that's one with a marketing system that works like clockwork.
Building a database and marketing to it is a great way to increase the value of your business before selling. By tracking the responses to your marketing within the database you can show the ROI of marketing pieces and show that this is available to potential new owners. Your business then looks much more valuable to buyers than many of the other restaurant businesses on the market.
- To increase the value of your restaurant before sale.
- Grow your database - birthday cards and emails to client base.
- People come in, spend their money, money in the bank.
- You can turn your restaurant into an amazing asset.