Selling your small business can be a project that is complex involving many considerations. It may mean that you use an accountant, a broker, as well as an attorney as you proceed through each step. Will you profit depends on, the timing of sale, the reason for selling, the strength of your business and it’s built. Here are some tips on how to sell your business.
Reasons for sale
You have made the decision to sell your business but why? That is a question a possible buyer will ask. Most owners usually sell their business for many reasons – some of the following:
- Partnership disputes
- Retirement
- Illness or death
- Boredom
- Becoming overworked
Many owners think about selling the business when it is not lucrative, but this can make it much harder to appeal to buyers. Deliberateon the business’s ability to sell, its timing and readiness.
Business valuation
Next, you will want to determine the value of the business to make certain you do not price it too low or too high. Find a business appraiser to get a valuation that is correct. The appraiser draws up a detailed account of the worth of the business. The document brings credibility to the asking price and is a gauge for your listing price.
Preparing documents
You will need to find all your tax returns and financial statements dating back 3 to 4 years and review them with your accountant. Additionally, you should make a list of equipment that will be sold with the business. And you should need to makea list of contacts who are related to sales transactions and supplies. Also gather up any paperwork that is germane such as your existing lease. Develop copies of all this paperwork to give to financially qualified buyers.
The bottom line
Selling your business is such a time-consuming project and for mostowners, it is also aventure that is emotional. A reason that is good to sell or the market that is “hot” can help with the load, as can the help of professionals.
It also might be likelyfor your benefit to receive some free counselling from organizations like SCORE, and your chamber of commerce also offer seminars and workshops that are relevant.