When you decided to set up your Amazon FBA business, you probably didn’t give a lot of thought to your exit strategy. However, now you have made your money, it could be a good time to sell up and move on. Here are four tips for selling your Amazon FBA business.
Get Your Business Valued
You can do this for yourself or get an independent person to value your business and help you sell it. If you are going to be following the trends and selling through an acquisition specialist, then they may be able to get you more money with their knowledge and contacts than you could yourself. It therefore makes sense to get this company to provide you with a valuation of your company too. They will be able to cast an eye over the figures and give you a valuation based on the figures they are looking at. You could do this for yourself, but many people find that they get emotional about selling a company and may want to achieve an unrealistic figure because of this. An impartial eye can give you the facts.
Increasing Your Business
You will find few buyers willing to part with their money for a declining business, but if profits are soaring, you probably would not want to sell it. Your selling price will be at an optimum if business is increasing steadily but potential buyers can see where they could maximise profit. If your business is already sitting in this space then, fantastic, you are good to go. However, if not, you might think about how you might increase your business profits for the next 6-12 months to make it more marketable.
You can increase the saleability of your business by making sure that your books are accurate and up to date. Meet with an accountant to help you put them in order before you speak to a potential buyer. Optimising your listings and selling on platforms other than Amazon is also a good way to branch out and increase the sales price. Maintain supplier relations while you are trying to sell your business as goodwill is a large part of what a potential buyer is buying.
Deciding When to Sell Your Business
If profits are declining, it might be worth holding on to your business for a few months to increase profitability and therefore increase the potential sale price. However, this could give you a new lease of life and you may decide that once you have breathed some fresh air into your business you may no longer want to sell at all. Other factors to consider are whether you enjoy running the business or whether you want to quit while you are ahead. There are many reasons why you might want to sell your business now rather than holding on to it. Take your time to make the final decision as the option you choose now will stay with you forever.
Plan Your Future
It is important to have a post-sale plan. Even if the business is becoming a burden, not having to spend time on it could leave you bored and wondering what to do with all that free time. If you enjoyed running your own business, you may feel the loss of no longer being your own boss or a budding entrepreneur more than you think. This might be a good time to look for another business to invest in or start a new venture of your own.
There are many different factors to consider when selling an Amazon FDA business. Take your time to plan your exit strategy and take some professional advice before you go ahead.