Running a business is a goal many people have. They love the idea of controlling their own lives and being their own boss. However, there may come a time where you want to exit the business and either retire or move onto something different.
While some people will pass a business down to keep it in the family, others may decide to sell the business. This can seem like a complex task, and can be at times, but it can also be simple if you follow the right steps. With that in mind, this blog post is going to go over 3 simple steps to help you sell your business.
Find a High-Quality Business Broker
One of the first things you should consider doing is to hire a business broker. A business broker can help you with every aspect of selling your business, such as marketing your business or facilitating meetings. They can take a lot of work off of your plate and are generally a good idea. If you are selling to a friend or family member you may not need one, but if you are looking for an outside buyer, they can be a real help.
Of course, be sure to know how to find a good business broker. You should go with someone that is licensed, has experience in the space and has a good track record or helping business owners have good exits. They should be easy to communicate with, should always keep you in the know and be open to hearing your opinions and expectations.
Determine the Value of the Business
Next, you need to come up with a value for the business. It needs to be a number that still provides some value and potential for a buyer, while still giving you an exit you can be happy about. If you price the business too low, you might not get the kind of profit you were hoping for. But if you are asking too much, actually selling the business will be challenging.
There are several different strategies for valuation that you can use. Some will focus on what similar companies have gone for, some will focus on the assets a company has and others on the success the company is currently experiencing. Be sure to take time to find the right valuation, to ensure it is a good deal for everyone involved.
Of course, your broker will also be able to help you navigate these waters and ensure you are getting a fair value for the business.
Find the Right Buyer
Once the right price has been figured out, it’s time to find the right buyer. Marketing your business successfully should get it in front of many prospective buyers, who are interested in taking it over. Now, don’t expect to find a buyer in a day. It can often take several months or even longer than a year for you to find buyers in some cases.
Once you have buyers, it’s time to move through the process. They will want to see the finances of the business, and the negotiation process will ensue. Be sure to have a couple of potential buyers in mind in case the negotiations falter with the first buyer.
Be sure that you take care of all of the necessary documents, such as the bill of sale, as well. These will be required for the sale to be legal and is essentially what transfers the business and its assets to the buyer.
In conclusion, we hope this article has been able to help you learn more about how simple the process of selling a business can be.
