HOW SALEABLE IS YOUR BUSINESS?
Building a profitable business is only part of the journey — the real question is; how saleable is your business?
Sale-ability is about far more than strong turnover. Potential buyers look for predictable profits, clean and up-to-date financial records, solid customer relationships, and systems that do not rely entirely on the owner. In simple terms, if the business can keep running smoothly when you step away, it becomes far more attractive — and typically more valuable too.
That is why strengthening your business’s exit position well before you plan to sell is such a smart move. Taking a proactive approach can make a meaningful difference to both valuation and buyer interest when the time eventually comes.
Some of the key factors that improve sale-ability include:
- Consistent, recurring revenue streams;
- Documented processes and clear workflows;
- A strong, loyal and transparent client base;
- Well managed costs;
- Healthy profit margins;
- Up-to-date statutory compliance and accurate up-to-date financial reporting.
Buyers want confidence. Clear management accounts, forward-looking forecasts, and evidence of sustainable growth all help to demonstrate stability and reduce perceived risk. The easier it is for a buyer to trust the numbers, the easier it is for them to see the opportunity.
Even if a sale feels like a distant goal, planning early gives you far more control over both timing and value. By focusing on sale-ability today, you are not just running a business — you are building an asset designed to deliver the strongest possible return when the moment is right.
Article by: Lisa-Marie Duvenhage (Franchisee Durbanville)
UNDERSTANDING THE TRUE COST OF SELLING SERVICES
When pricing services, many businesses focus on salaries as the primary labour cost. However, an accurate costing model requires a broader view of employee capacity. To calculate realistic billable output, total available working time should be adjusted for non-billable factors such as annual leave, public holidays, family responsibility leave, and sick leave. This approach helps ensure that pricing and cost recovery are based on actual productive hours rather than theoretical availability.
The example below illustrates how productive capacity can be calculated for an employee who receives 15 days of annual leave.
| Days/Rate | Days | Hours |
| 365 days per year | 365 | 2920 |
| Less: Weekends (52 weeks x 2 days) | (104) | (932) |
| Less: Public holidays | (12) | (96) |
| Less: Family responsibility leave | (3) | (24) |
| Less: Sick leave allowance (average) | (10) | (80) |
| Productive days/hours available per year | 221 | 1768 |
| Productive days/hours available per month | 18 | 147 |
This calculation shows that, after accounting for standard non-working and leave days, an employee is available for productive work for only 221 days per year, or approximately 18 days per month.
Understanding this distinction is essential when setting hourly rates. If pricing is based on full calendar availability rather than true productive capacity, a business may under recover its overheads and reduce profitability. A well-informed costing model supports more sustainable pricing decisions and improves long-term financial performance.
For professional guidance on costing and pricing in a service-based business, consider speaking with a Business Accounting Network franchisee in your area.
Article by: Lindi Jonker (Area Office N1 City)
WHEN THE FOUNDER DIES, THE TAXMAN DOES NOT MOURN
Many small and medium-sized enterprises do not survive the death of their founder. This is often not because the business was unsuccessful, but because no provision was made for what would happen next. Taxes, estate duty, capital gains tax, and executor’s fees can place significant pressure on a deceased estate, forcing families to sell assets to cover liabilities that could have been anticipated and planned for well in advance.
Many business owners are unaware that death can trigger capital gains tax. On death, assets are deemed to be disposed of at market value. This can apply to shares, property, investments, and business goodwill, meaning that a tax liability may arise before estate duty is even taken into account.
The core issue is often not the tax itself, but liquidity. A business may appear valuable on paper while holding very little cash. Without proper liquidity planning, heirs may be forced to sell assets—or, in some cases, the business itself—to meet obligations to SARS.
The earlier business owners engage with their accountant or financial planner and begin succession planning, the greater the opportunity to structure both the estate and the business efficiently, reduce unnecessary tax exposure, and avoid costly mistakes for their families and successors.
Article by: Preleshni Govender (Franchisee – Durban)