Facts and Tips When It Comes to Selling a Small Business
Deciding to sell your small business is a major decision and it is important to take several things into consideration like enlisting a broker, lawyer, and an accountant as you proceed. As for the profit of the sale, it will largely depend on several factors such as the timing of the sale, reason or purpose of selling your business, business strengths, and structure. Selling your small business will require you investing time, effort, and money to find the right buyer for the right price you are aiming for.
Your potential buyers would really ask the reason why you are selling your small business, and your answer will depend if they will push through with the transaction or not, but usually, the most common reasons include boredom, retirement, migration, overwork, illness, and death. While it is true that many owners sell a business because it is not profitable anymore, you can highlight the strengths of your business for it to be attractive to buyers such as having a strong customer base, increasing profits, consistent income figures, and having a major contract that spans for several years. It is a good idea preparing your business for a major sales a year or two years ahead of time for a smoother transition and to make the business more profitable through establishing customer base, improving financial records, and strengthening the structure of the business. Of course, you want to know the real worth of your business, and a business appraiser can help get the valuation by drawing a detailed explanation, and this document ensures that you are a credible and reliable seller. While selling your business yourself can save you money and avoid paying the commission of a broker, hiring a broker can help you spend your free time to focus on your business, keep the sale silent, and obtain the maximum price. It is essential to prepare all the documents needed for the sale such as your financial statements and tax returns.
A business sale can reach from six months to two years because finding the right buyer is a real challenge, so don’t limit your marketing for advertising and attract more potential buyers. Before you give any information to a potential buyer, make sure that he or she is qualified for financing, and allow a room for a buyer to negotiate but show firmness on the price that is also reasonable. All verbal agreements must be documented or put in writing and potential buyers should sign a confidentiality or nondisclosure agreement for your protection. You need to have a solid financial plan and handle your profits wisely.A Simple Plan: Businesses