Tips on Selling
Tips On Selling Your Business
At , we suggest the following when selling your business:
- Start Early Selling a business takes at minimum several months – and that’s if everything is already in order. Significant planning is involved.
- Have a Clear Reason to Sell A Business Selling may not be your only option.
- Get Your Financials in Order Restructure your financial statements so they’re easy to read. You should have the past three years of financial statements and tax returns available for the buyer.
- Build a Mini-Business Plan Selling a business requires sales skills. Develop a business plan to sell to potential buyers, which includes your business’ financials, sales, the business plan, industry projections, recent improvements and other important aspects of your business.
- Know Your Worth Valuing your business is a necessary task when you decide to sell. There isn’t a single formula that can accurately determine the worth of your business.
- Stay in Business While Preparing to Sell It takes most U.S. businesses four to 12 months to sell. Selling your business may be an incentive to increase sales, profits and the selling price.
- Add Value to the Business If you have rusty equipment, replace it. If possible, sell off assets that aren’t generating revenue.
- Consider Hiring a Business Broker Brokers have buyer contacts, marketing avenues that can speed up the sale of your business. They usually are not accountants, tax professionals, or attorneys, which should also consult to make sure all aspects of a sale are handled properly.
- Know the Market Even if you have a broker, it’s important to monitor whether your industry or the economy is about to slow down or grow. Growth potential is key for potential buyers, who are often looking to invest in an emergent market or business.
- Know Your Buyers