How do I sell my business?
If you would like to sell your business quickly and intelligently, there are a few important things to note. A wise seller 1) will understand their business’s competitive market position, 2) can choose a competitive asking price, and 3) is able to identify a competitive offer. An efficient sale is one that has been carefully planned which means preparing long before the business has even gone up for sale.
- Determine Business Value
The first and most important step is determining your business’s value. This is mainly because not only will it help you choose a competitive listing price, but it will force you to do the research that is helpful in a number of different ways during the selling process. For one, understanding your position in the market, and how that affects your profits.
- Organized Business Financials
In the process of determining business value, you will find out how organized your financials are. It is crucial to have your financials organized for yourself, but also potential buyers. Being able to clearly identify your profits, equipment depreciation, property values, etc. will allow you to stand apart from other, not so organized, competitors.
- Prepare Exit Strategy
Whether it is retirement or the desire to switch industries, having a prepared exit strategy is important. A forced, last-minute sale can mean you list your business for less than what it is worth or sell to the wrong buyer. Preparation not only avoids this but also makes the process run more smoothly when the time does come – sudden or not.
- Boost Sales
Before a sale, try to boost revenue as much as possible for six months to a year prior. Potential buyers want to see that your company is growing and is likely to continue to grow even without your ownership. However, what does that look like? Depending on the type of business, this could be a new coat of paint on the walls, new signage or even diversifying the inventory. The key is to attract new customers and instill greater loyalty.
- Business Broker
A business broker is skilled in both the process of selling and buying, which makes their guidance invaluable when you find yourself on either side of that transaction. If you want to sell your business quickly and efficiently, take advantage of the vetted network of potential buyers offered through Transworld Business Advisors.
