One of the most popular ways to get out of business is for business owners to sell their business. Sometimes, it is because there are no successors to keep the business up. In other cases, it was the plan of the business owner to liquidate the business at some point. Whatever the reason for selling your business, you want your business to sell quickly and to make the most profit you can, based off of what you have invested into the business. Following are a few tips to help you achieve these goals:
First of all, you want to make sure you are selling your business at the right time and for the right reasons. You don’t want to wait until you are too sick or too old to run your business before you decide to sell it. One reason is that it will be much harder for you to deal with the additional stress related to selling a business. Second, potential buyers will try to use such circumstances against you. The best time to sell your business is while you’re still young and healthy and your business is still successful enough to sell.
When it comes time to sell your business, it’s like selling a house in some aspects. You don’t want to say that you are selling your house because it’s too small, you want to give another reason, such as to be closer to work, or closer to family. So, you don’t want to sell your business because it’s too small- maybe you want to pursue another opportunity- or even retire.
Third, you want to make sure you’re clear and honest about what exactly you’re selling. Before you sell your business, think about- and make a list- of all the assets of your business and figure out what would be included in the sale. Figure out what your physical assets are as well as anything else, such as trademarks, client lists, good will, and physical assets. The value of your assets depends on the quality of the assets.
Fourth, you want to make sure that you know exactly how much your business is really worth. Actually, it’s funny but true, your business is worth whatever you can get someone to pay for it. However, figuring out what that is can be challenging. Consider hiring a professional to do a business valuation. It is true that basically anyone can do a business valuation, but one that is done by a professional will be more trusted and could keep you from legal issues later on down the road.
Fourth, make sure that everything is in order. Be careful that you take extra time and effort to make sure it looks good all the time. Keeping it this way can really work out in your favor. Keep your inventory up and your premises maintained, as well as keeping records up to date. A buyer will want a business that is doing well, not one that has been neglected that they’ll have to work to rebuild.
Finally, consider going online to help sell your business. There are literally millions of people just waiting for the right opportunity to pop up. These hungry buyers are scouring the classifieds and sites for just the right business and who knows, it could be yours!
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
He recommends Bluehost for setting up your own personal and/or business blog.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.