Things to do before selling your business
If you are a business owner you may not have even considered what you need to do to sell your business. Most business owners open their business with the idea that they will work in it as long as they can. However, there are factors that can happen that will make selling your business a necessity. It is important that as a business owner that you are aware of the factors that can influence the selling of your business. Here are things to do before selling your business
- Keep your business in sell-ready shape-Even if you are not presently considering selling your business you should keep it in the kind of shape that would allow you to if you got an offer you couldn't refuse. Making the effort to keep things in the best shape possible can pay off in getting the most money for your business. You want to make sure that everything is in order and that your business shows well. This means that you not only want to keep the physical location maintained but also the inventory current and the business records up to date. Keep in mind that any potential buyer will want to see a business that is growing and thriving not one that looks like it hasn't been taken care of. You should also try to keep your liabilities as low as possible as this makes your business look a lot more appealing.
- Sell at the right time-One of the most crucial decisions to make is when to sell your business. Many times businesses are sold under duress and this is often the worst time to sell a business. You don't want to be having to deal with additional stress while trying to sell your business. In addition, if your buyer sense or even knows that you are selling under duress he or she may use that against you to get a better price. You want to make sure that if you are selling your business you are doing it at a time that you can get a premium price.
- Determine what you are selling-This may seem counter intuitive to selling your business however, you may not realize that you are selling more then just the physical assets of your business. Some businesses will have considerable good will, trademarks, and customer lists as well as other valuable items that should be figured into the selling price of the business.
- Have a business valuation done-It is important to have a realistic determination of the value of your business. However, you should keep in mind that the real value of your business is what it will bring in if it should be sold. However, this can be tricky to figure out. There are several different ways that can be used to do a business valuation. In addition, you will also need to consider what other businesses have sold for in your industry, the current economic trends and the current market for businesses like yours. A professional business valuation that is done by a business expert can give you better leverage when you go to sell your business. In addition, it can not only save you from legal hassles but it is often looked on more positively by potential buyers.
- Don't be afraid to ask for help-It is important to keep in mind that when selling a business it is a complex process. However, there are professionals who can help you move through the process. These professionals include but are not limited to: a business valuator, a commercial or business broker, and an attorney. All of these people can make sure that the entire business selling process is taken care of effectively and legally.