After spending the week reviewing grant applications with the Mentoring for Growth team, I walked away with one big thought:
People have wildly different ideas about what makes a business “successful.”
Some think it’s passion.
Some think it’s branding.
Some think it’s because their mum once said, “You should totally go on Shark Tank.”
But when you’re looking for investors - or planning to sell your business (and let’s be honest, plenty of small business owners are circling 1 July 2027 in their calendar thanks to Jim Chalmers’ CGT changes) - the definition of “successful” suddenly becomes a lot more… numerical.
Let’s break down what buyers actually care about, and why your gut instinct is great for choosing a horse based on the jockey’s red silks… but not so great for choosing a business.
🌟 The Top 5 Things Buyers Look For in ANY Small Business
Whether you run a café, a landscaping crew, a retail store, a hair salon, a dog‑grooming empire or a bookkeeping practice - these matter.
1. Clean, Accurate Financials
Buyers want:
If your books look like a toddler’s craft table - glitter everywhere, glue in places it shouldn’t be - buyers will sprint.
2. Healthy Cashflow
Cashflow is the heartbeat of your business.
They want:
If your cashflow graph looks like a theme‑park ride, it’s time to flatten the track.
3. Manageable Debtors
High debtors = giant red flag.
Buyers want:
If your customers treat your invoices like optional reading, fix that before you hand over the keys.
4. Stock That Makes Sense
For product‑based businesses:
Buyers want stock that moves - not stock that naps.
5. Sustainable Profitability
Not “profit because I didn’t pay myself.”
Not “profit because I forgot the super.”
Not “profit because I ignored the broken equipment.”
Real profit. Real margins. Real numbers.
🤔 KPIs vs Gut Instinct - Who Wins?
Your gut is fabulous for:
But when it comes to investing in a business?
Trust the numbers. Always the numbers.
Your gut can join the meeting - but it cannot be the CFO.
🏡 Selling Soon? Here’s How to ‘Bake Cookies’ for Buyers
Selling your business is just like selling your house.
You wouldn’t invite buyers over with dishes in the sink, laundry on the couch and a mysterious smell you can’t locate.
You’d style it.
You’d polish it.
You’d make it irresistible.
Here’s the business version of that:
1. Clean Up Your Debtors
Chase what’s owed. Tighten your terms. Show buyers your customers actually pay.
2. Fix Your Stock Levels
Clear out dead stock. Show strong turnover. Make your inventory look intentional, not accidental.
3. Get Your Compliance Up to Date
Buyers do NOT want:
Clean compliance = higher valuation.
4. Document Your Processes
If everything lives in your head, the business value lives there too. Write it down. Systemise it. Make it easy to hand over.
5. Show Off Your Strengths
Loyal customers, strong brand, great location, repeat business, efficient systems, well‑trained team - flaunt it.
The Bottom Line
A successful business isn’t the one with the prettiest Instagram grid or the most enthusiastic founder.
It’s the one with:
If you’re planning to sell before 1 July 2027, start styling your business now.
Bake the metaphorical cookies.
Make it irresistible.
And cash in before the CGT changes roll in.
Stay cool, and hit the beach. 🏖️
