Did you know only 20 to 30 percent of businesses listed on the market sell?
Because the odds of selling a business are small, owners have to put a lot of effort into making the sale happen. If you’re considering selling your business, you came to the right place!
Read on to learn more about how you can get started today.
1. The Value of Your Business
Before you take steps to begin the process of selling your business, you need to know the value of your business. Without knowing the value of your business, you could end up losing money in the sale if you price it too low.
To enhance your credibility with potential buyers, you can get a third-party valuation company to provide you with an estimate. During the estimate, the evaluator will take into account your profits, assets, debts, liens, and more to provide you with a base number.
2. Put Your Books in Order
If you want to put your business on the market, then you need to do your best to clean up your finances. It’s a smart move to talk to your accountant to sort out any red flags that might scare away any potential buyers.
Your accountant will work with you to present clean financial statements, receipts, tax returns, and more to potential buyers.
3. Don’t Talk About It
Even if you’re serious about selling your business, you don’t want to talk about it too soon. Talking about the sale of your business before you have a serious offer could cause your employees to get uneasy.
Not only will your employees question their future at the business, but your customers can also enter in panic mode.
It’s in the best interest of the business not to say anything until you have a serious offer and have worked out a transition plan.
4. Get a Business Broker
Selling a business is not like selling another piece of property. You will need to work with a business broker that specializes in finding buyers for businesses.
A broker will create buzz and put feelers out there to find the best buyer for your business. Working with a broker will also give you an idea of how much other similar businesses have sold for.
Working with a business broker will increase your chances of getting more offers in writing.
5. Make Your Business Appealing
Aside from putting the finances in order, you should do a little housekeeping to make the business more appealing. Buyers will not want to buy a business with a poor curve appeal.
Let’s face it; a business that looks in shambles does not scream profitable. Make sure you clean up the landscaping, signage, and do a deep clean,
This article has a few tips on how to get your business ready.
Selling a Business? Follow These Tips
Now that you know about the steps you need to take when selling a business, you’re ready to take the next step. Start by finding the value of your business, get the finances in order, clean up the curve appeal, and work with a broker.
If you want to enjoy more tips, check out the rest of our blog.
