Selling a business is a one-time deal that may make or break an entrepreneur. While many entrepreneurs would not think of selling their businesses at the start, there may come a time wherein the entrepreneur may want to move on.
How much you would earn from selling a business would depend on how you "incubated" your business prior to the sale, as well as prevailing economic conditions. If done correctly though, the long time of nurturing the business to a healthy, profitable state would not be wasted and would allow the entrepreneur to enjoy very good profits from the sale.
1. Keep your business' financial information updated
Gather together the financial information required to market and sell a business such as 3 years’ income statements, the lease and list of business loans together with payments and balance.
2. Keep your business attractive until the day you sell
To capitalize on selling a business, prepare all the necessary paperwork. You should also try to increase your revenue using aggressive marketing techniques and sometimes, even offering your customers special deals.
3. Determine Why You Want to Sell
Potential buyers will certainly be wondering why you are selling your business and may ask you directly. You should make sure that you answer their questions truthfully and not make them think that you are doing so out of great need.
4. Determine the right price for your business
Do not scare potential buyers by asking a high price. You might give them a negative impression and think that you are not really serious. You can try offering a lower down payment to attract more buyers and close sale faster.
5. Think of Ways to Receive Multiple Offers
If a property is being offered at a bargain price, you can be sure that buyers will be flocking and out-bidding each other. At the end of the day, your asking price would have soared considerably.
6. Find Prospective Buyers
During the course of selling a business you will get a lot of prospects who are not really interested and can waste a lot of your time. You need to be able to quickly judge the seriousness of a prospect
7. Keep it confidential
Do not let your suppliers know that a business is for sale, you can safeguard a business from possible problems such as pullouts of credit lines and cash-only payment terms which can make a business unattractive for purchase.
8. Prepare to finance your buyer
Offering to finance your asking price is a sure-fire way of attracting more potential buyers.
9. Sign a Sales Agreement
You will need to put the deal in writing. Among other things, your agreement should list and value the assets the buyer is purchasing. If you made the sales agreement yourself, have it reviewed by a business lawyer.
10. Get a broker
A broker will help you get a good price for your business, negotiate terms and conditions of the sale and ensure business confidentiality. They will surely provide you with much convenience.
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