Summary: The process of selling your business can be a tricky one, but it can also be quite lucrative at the same time if done correctly.
The process of selling a small business can be quite complex in that it involves numerous considerations. First off, you’ll need to enlist a seasoned broker, an accountant, and attorney as you proceed. Your profit will essentially depend on the reason for the sale, the timing, and the strength of your business’s overall operation and structure. Furthermore, it’ll also require an immense amount of time. Here are some considerations and tips to make your sale a successful one.
Determine Why You Want to Sell Your Business
Once you’re zoned in on selling your business, ask yourself why. Owner tend to sell their businesses for numerous reason: retirement, illness, disputes, etc. Some owners sell their business when they don’t see enough profits and it’s hard for them to attract buyers. Consider your business’s ability to sell, its readiness and timing.
Time it Right and Prepare
The next step you’ll want to take is to prepare for the sale as early as possible, preferably a year or two ahead of time. This preparation will ultimately help you to improve your business structure, customer base, and financial structure to make your business more profitable. The goal of this is to ease the overall transaction for the buyer, making the process go much smoother – and essentially getting your money sooner.
Determine the Worth of Your Business
You’ll want to determine the overall worth of your business to set the price just right. Locate a business appraiser and discuss valuation with him or her. The appraiser will then draw up a detailed explanation of the worth of your business. This document adds credibility to your asking price and can also provide you with leverage.