January 4, 2014
Selling a Business: If You are Considering Selling Your Business, Here are Some Helpful Tips
If you are considering selling your business, there are a few tips you should use to help you make the maximum amount of profit off of the sale. Most people who are looking to sell their business simply do not know where to start, and usually end up hiring a broker to sell their business for them. The only problem with choosing to go this route is that a broker will typically charge quite high fees which will eat up a large portion of your profit. This is why you should instead look to selling your business yourself, and if you follow these tips, the entire process should go very smoothly and ensure you keep most of the profit from the sale for yourself.
Make Sure You Have a Business Plan & Forecast in Place
No matter how you choose to sell a business, the first step is to make sure that you have a detailed business plan and forecast in place. If you do not have one, then you need to create one, as no one will be likely to purchase your business without one.
Compile a Profit & Loss Report If You Don’t Have One
You will also need to make sure that you have reports for at least the last few years which explains your profits and losses in detail.
Again, anyone who is considering buying your business will not do so without looking through your books, including profit and loss reports, so it is important to have these prepared long before you ever meet with potential buyers. Without one, you will seem quite unprofessional and most potential buyers will quickly be put off and look elsewhere, so the importance of having all of your books and reports in order cannot be underestimated.
Have a Contract of Sale Written Up By a Lawyer or Attorney
Another thing you will need to do is have a contract of sale written up and prepared by a lawyer or an attorney. This will help facilitate the sale and make everything that much easier, so it is recommended to have at least a basic contract prepared before meeting with potential buyers. This will also help you ensure that the sale is done completely in line with the law and help you avoid any potential hassles or stumbling blocks for the sale.
Sell On “Business for Sale” Websites Rather Than Using a Broker
After you have all of your business documents prepared, you will then need to find a buyer, and the best way to do this is to lost your business on a for sale by owner or business for sale website. The reason that this is preferred over using a traditional business broker is that it allows you the freedom to meet and negotiate with the potential buyers directly. It will also allow you to save a ton of money by not having to pay the high fees and commissions charged by brokers, so you can maximize your profit. Of course, you will still have to pay for a listing on these websites, but the fees are only a fraction of what you would have to pay to a broker, so this is definitely the best way to go and will help you to sell a business fast.