How to Best Sell Your Small Business
As you proceed to a sale of your small business, it may require you to enlist an accountant, broker, and an attorney because it is a major decision that must consider several important factors to make it successful. Your profit will highly depend on the reason of the sale, timing, the structure of your business, and its strengths. When selling your business, you have to invest time and effort as well as money to find the right buyer so you can get the right profit you deserve.
Your potential buyers would really ask the reason why you are selling your small business, and your answer will depend if they will push through with the transaction or not, but usually, the most common reasons include boredom, retirement, migration, overwork, illness, and death. It is hard to attract buyers selling a business that is no longer profitable, but instead of dwelling on this subject, you can highlight the strengths of your business (wide customer base, steady income figures, increasing profits) and by considering the business’s ability to sell. By making your small business more profitable and ready one or two years ahead before selling it, there will be a smoother operation, and you are confident that you will be handing your business in good state. You can ask the help of a business appraiser to obtain a valuation and a broker to find the right buyer for you. While it is true that you can save money on broker’s commission when you proceed with a private sale (selling to a family relative or employee), hiring the services of a business broker can help you to get the highest price for your business. It is essential to prepare all the documents needed for the sale such as your financial statements and tax returns.
A business sale can reach from six months to two years because finding the right buyer is a real challenge, so don’t limit your marketing for advertising and attract more potential buyers. Before you give any information to a potential buyer, make sure that he or she is qualified for financing, and allow a room for a buyer to negotiate but show firmness on the price that is also reasonable. All verbal agreements must be documented or put in writing and potential buyers should sign a confidentiality or nondisclosure agreement for your protection. Be smart in handling your profit and create a financial plan, set your short term and long term financial goals, and course of action.Why not learn more about Sales?