So you have been running a business for quite some time now and have decided to sell it out now because you think it’s high time you do it, the market is reasonable and you most probably would have a couple other reasons as well to justify the sale. However, selling a business is not as easy and quick as it might sound especially when you try cutting a deal without any prior preparation.
So what are the essential steps that one must follow to ensure a quick and smooth business sale?
Before you jump into that, it is necessary you give yourself a lot of time. Think about your decision, why do you wish to sell? Would you be better off without doing that yet? Have your friends and family’s opinions, they might be able to guide you. A lot of business experts advise planning the sale a year or two in advance. Give yourself and the company time, go over the essential paper work and procedures, hire professionals if you can and asses the prospective buyers deeply, take as much time as you need but never rush.
Here are our top tips to help you prepare well in advance:
Have A Solid Reason
It’s obvious that no smart buyer would purchase any business without investigating into it deeply. They would want to know why you are selling the business anyway. So figure out your reasons behind the move, it could be anything from retirement, change of business, end to partnership to death of the owner or splitting of the business. As long as your motive is supported by logical claims and reasoning you are good to go. Never sound dubious about your motivation because if you are not confident as to why you want to sell the business no buyer would show confidence in purchasing yours.
Sell It While Profitable
It is generally presumed that businesses are meant to be sold when they are running in loss. Selling any business requires attracting customers and it becomes extremely hard if not impossible to attract good buyers if what you offer is not worth it. Instead, selling the business while it still generates revenue is the best time to attract huge customers because they see a future in your venture.
Hire A Broker
You can either find a buyer on your own or hire a professional broker for the job. While selling the business yourself will save you the broker’s fee but it might not land you the best deals available. It is advisable to hire a professional broker. They have connections and experience to get the job done quickly and at better rates than what you would get on your own. Chances are the broker will cut a better deal for you. Therefore, find as many brokers in your area as you can and interview them all. You will know which one suits your needs.
Lastly, selling a business is nothing small. It’s a huge step forward for many and a roller-coaster of emotions for others, after all your business is something you have given your time, energy and money to and splitting from it might be a difficult process. Therefore prepare yourself mentally and start thinking about your future plans.