Running a small business can be challenging but rewarding. However, there may come a time when you decide that you want to sell your small business. This could be for a range of reasons, such as having other commitments, for financial reasons, or simply because you would prefer to focus on something else.
Selling a business can be challenging, so you need to ensure you plan effectively and know what you need to do. You don’t want to undersell your business but you also don’t want to see it festering on the market for lengthy periods, particularly if you need to sell quickly. Planning ahead and familiarising yourself with the process can prove helpful.
Some of the tips that can help you
There are a number of factors you need to keep in mind to help you sell your small business with as little hassle as possible. With these selling small business tips you can benefit from a far more smooth-running process. Some of the tips to consider include:
- Your reason for selling: Bear in mind that one of the first questions a potential buyer will ask is why you are selling the business. It may be to make a profit – after all, we’ve all seen reports on news channels like msnbc live stream about smaller businesses that have sold for a fortune. You may be selling because you want to retire or spend more time with family. It may even be that you cannot cope with running a business any longer. Whatever the reason, make sure you are clear and know what to say to potential purchasers.
- Get a valuation: It is important that you get a proper, professional valuation on the business before you even consider putting it up for sale. You need to ensure that you are not going to end up out of pocket, and you also need to know what sort of asking price to go for.
- Use a broker: Although you can try and sell the business on your own, this can be very time consuming. You also may not have the necessary knowledge, links, and resources to boost the chances of a sale. If you use an experienced broker, it will cost you a little more initially but you could recoup this cost with a faster sale at the right price.
- Speak to your accountant: You should take the time to organize a meeting with your accountant, as you need to go through figures for the last few years with a fine tooth comb. All potential buyers will want to look over your figures, so make sure everything is up to date and accurate.
- Advertise using multiple channels: If you do decide to advertise and sell on your own, make sure you use a number of channels not just one. Also, it is always best to try and line up several buyers, as this will save you having to start the whole process again if the first one falls through.
You do need to be patient, as data shows that the sale of a small business can take up to two years on average. However, using these tips will help to ensure that you are fully prepared when the time comes.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.