It takes a lot of courage and commitment to begin a new business, but an equal amount of bravery and wisdom is needed to think of stopping the business and investing the energy in a fresh direction. Before such a situation arises, a few symptoms appear and become quite tangible at least instinctually. When these symptoms occur, then it is time to pack the bag and scratch the head to find a new course of action that is different from the present one and gives one the chance to stop and sell the current business in a profitable and meaningful manner.
The following are a few prominent signs that send a clear signal that it is time to launch a sell-drive for the business:
- Diminishing returns despite an active business scenario.
- Loss of interest/enthusiasm due to unwarranted episodes of struggle.
- Too much work pressure in return for small benefits.
- No enhancement in the self-image as one is no longer able to recognise oneself with the business.
A step-by-step guide to selling the business, the right way!
When one has admitted that there are clearly recognisable signs that show that the business is not performing as desired or your interest levels have dropped, it is time to put a plan in place to sell the business. Several steps must be followed before the final stage of selling is achieved.
A step-by-step guide to doing it while earning maximum returns.
A. Restructuring the existing debt
This is the first step that must be completed in order to set the pace for the future ones to follow. Debt restructuring is nothing but an endeavour to gain an advantage (in debt repayment) by re-adjusting the debt contracts in agreement with the lending parties such as banks or financial firms. As it calls for specific domain expertise, it is preferable to entrust only an experienced advisor to take care of the process. It is now easy to find such advisors on platforms such as Tobuz.com where such advisors enlist their service along with their specialisation areas.
B. Keeping the financial books updated and clean
No business runs without adequate financial strength, and it gets quite essential to keep the books/financial records clean/updated with no financial liability while selling off the business. It actually helps in smoothening up the process for not just the seller but also makes it an attractive proposition for the buyer.
C. Drafting a pitch
Preparing a pitch stating the potential strengths and challenges of running the business is an absolute prerequisite to launching an online or offline sale of the business. The business advisors at Tobuz.com can act as a friend, philosopher and guide to draft a pitch that appeals to the potential buyers.
D. Evaluating your business worth and announcing the sale plan
There are many ways to evaluate the real worth of the business in monetary terms, but it can be achieved authentically with business advisors and evaluators who specialise in this field. Once the steps mentioned above are completed perfectly, then it is time to announce the sale of the business. How to do it effectively? Maybe online, offline or by using both the mediums simultaneously to reach a wider audience at any single point in time. Thus, it is vital to select the most appropriate channels of communication to drive in the desired results.
E. Hiring a broker/advisor
When a transaction involves a considerable amount of time, energy and efforts, then it is wise to involve a broker or an advisor to help conduct the process in a hassle-free and time-efficient manner. One may find many online platforms offering broker/advisory services. But, the brokers and advisors from platforms such as Tobuz iron out the difficulties in choosing the right/trustworthy buyer.
F. Reaching a vast ocean of potential buyers with online listing
Announcing the sale of a business should not be restricted to only a single medium. Online listing of the business sale proposal is a necessary move in the present day scenario where a significant chunk of the buyers stay active and are in search of good businesses to invest in. Online platforms make it easy to list your business for sale and make it visible to a large number of potential buyers. With more than 13,000+ businesses already listed, sites like Tobuz are fast becoming the place for owners to list their business online for sale.
G. Qualifying a buyer and signing the final contract
There are many cases where there are vast numbers of buyers for a single business on offer. In such cases, it becomes quite tedious to shortlist and then finalise only one buyer from the list. The idea is to get the best buyer who can offer the maximum value and also run the business efficiently. This is the stage for hiring expert negotiators to get you the best deal. And legal advisors will help you understand the fine print to ensure complete compliance.
There is no doubt that it is as difficult to sell a business as it is to launch it. There is a risk factor that prevails in both these stages, and one needs to be vigilant. To ease up the process, there is expert help available in the form of online platforms such as Tobuz which nurtures an ecosystem to help owners and shareholders buy or sell their business.