Has the time has come to finally part with your beloved business? There are many different reasons to sell a business including changing locations, pursuing different opportunities, or perhaps you just can’t make it profitable. No matter what the reason, it can be a difficult and lengthily process to sell your business. Here are some simple steps to help you sell your business.
Make A Plan For Potential Buyer Questions
Before you even look at potential buyers, you want to make a plan for selling your business. This mainly includes preempting any questions your potential buyer might ask you. They will ask you why you are selling your business. Be prepared with an answer. They may also ask you what your biggest successes and failures were, and how often you see customers. A potential buyer will probably treat it like a job interview, so be prepared.
Get A Business Valuation
Next, you will want to get a professional business valuation. This will help you make sure you aren’t pricing the sale of your business too high or too low. It will also save you in the event your buyer tries to low-ball you.
After you have a business valuation, you will want to prepare all of your documents. This can take a while depending how long you have been in business and how organized you are. You will need your financial statements, tax returns, a list of your equipment and how much it’s all worth, lease agreements, and more. You will need any documents that relate to your business. Keep these documents organized and easily accessible.
Find a Buyer
When you are finally ready to sell, it’s time to find the perfect buyer. Remember to allow yourself plenty of time, because it can take anywhere from 6 months to a year to go through the whole selling process. As you search for buyers, don’t sell to the very first buyer, unless they are offering way above your asking price. Get 2 or 3 potential buyers and stay in contact with all of them through out the process. Remember to give yourself time to negotiate, write out agreements, and sign the purchase agreement.
Make A Plan For Your Profits
If you have run a profitable business, when you sell your business, you should get an influx of money. Instead of spending it all at one place, take your time and talk to a financial planner, especially if you are retiring. Make sure to make a responsible financial plan, because you don’t want to have to go back to work when you cash out.
Selling your business certainly can be a long, emotional, and drawn-out process, but if you go about it the right way, you will come out ahead in the end. If you have any additional questions, take the time to talk to a broker.