Steps for selling your business
When most business owners open their business they don't really give selling their business much thought. However, studies show that at some point in the business lifecycle the chances are high that you will want to sell your business. This makes it extremely important to understand how the steps of selling your business can affect your business finances. When you have taken the right steps in selling your business you are completing the business lifecycle in the most profitable way possible. If you fail to do this you may find that your hard work was for nothing. Here are the steps for selling your business-
- Know why you are selling-It is important that before you begin the process of selling your business that you take the time to really determine why you are selling your business.The answer to this question will help you make the best decisions possible when you begin the selling process. You should also have a clear understanding what the assets are that you will be selling. Keep in mind that you may be including the good will, customer lists, or other non physical assets along with the rest of your business assets when you do sell.
- Understand that there is right time to sell-Just like everything else about your business there is a right time to sell. If you choose to sell your business when you have to, keep in mind that you most likely you won't get the best price for it. It can also be very stressful to sell a business so if you are choosing to sell when there is added duress in your life then the selling process probably won't be easy to navigate through. In addition, if you choose to sell your business with less then optimal timing the chances are pretty good that the potential buyer will use this as leverage against you and the price you are asking for your business.
- Decide what your business is worth-While you may think that your business is worth a certain dollar amount the reality is that your business is only worth as much as someone will pay for it. However, it can be challenging to determine what this price really is. There are many different valuation methods that are available to use. No matter what valuation method that you choose to use you should still consider the current market conditions, the overall economic trends, and what other similar businesses have sold for. Business finance experts stress that you should always have a professional business valuation done in order to get the right price. Not only will this help you get to the right price it will be more favorably regarded by your potential buyers.
- Have it ready to sell-Once you have determined the price that you want to sell your business at you should put in the work to make sure that it is ready to sell. Keep in mind that when your business is in the best shape possible it will attract more buyers and get you a higher price. You should make sure that all business records are up to date, inventory is all accounted for, and the physical premises of your business look as new as possible.
- Ask for help when selling-It it is important to understand that selling a business can be a complex process. It can be helpful to hire the right professionals to help you through this process. This can include but is not limited to: a business valuation expert, a commercial realtor, and a lawyer who has direct experience with selling businesses.