In order to sell your small business in this market, you need to be smart. Don’t just set up a “for sale” ad, and think you’re good to go. Any seller worth his salt knows that he needs to have a clear and strong view of their businesses market position. They need to know how the competition looks like, what are the obstacles they can face. Furthermore, they need to “clean it up”. This means anything from literally cleaning the whole place and fixing it up a little, to fixing sloppy books and updating old software. Below you will find some advice on how to sell your business.
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Table of Contents
Figure out your company’s value
The best way to figure out your exact company’s value is through a professional evaluator. While these services, of course, carry a small fee, they gave you the most realistic value of your business. Know that these reviews and valuations include your inventory, your fixed assets, sales, receivables, and any other assets and facilities you have. Do remember that they also check for any liens and debts.
They also take into account the market, and the competiton. They figure out how well a certain bussines has been doing, and what the market for that kind of product or service is like. Essenitally, they check how risky or profitable a bussines actually is.
The transition period
What many people fail to do is set up a proper exit strategy. Now, this may not necessary be their own fault – sometimes the sale reason is due to outstanding circumstnaces. Someites, though, its just pure laziyness. Whataver reason it is, you need to not only know what to do after, but what to do during the transition period. Namely, will there be a contract where you will serve as an advisor to the owner? If so, how many horus per week, for how long? What will your salary be?
Know that this would be an invaluable service to any buyer. You know your customers, your makert. You know what the industry wants, what it likes, what it hates. Having something like this in your pocket can be a valuable asset. It will get you some extra security and control before you finally move on to the next project (or retirement).
However, on the othehr hand, watch out for non-compete provisions. These provisions essentially don’t let you compete in this industry for some time. It can mean you cant open a new company doing the same type of business, or that you can’t even work for a competitor. Be on the lookout for these, but also be aware that they carry with them some financial compensation.
Get assistance
While we understand the need to have everything under your control, but still, sometimes you need help. You could either talk to somebody who went through all of this, or perhaps hire professional business agents. Talking with people who went through the same thing (or who even do something like this as a job) can really help you avoid any unnecessary mistakes.
Getting a business broker will help you get the best deal you can. While they of course charge a commission, a broker will definitely get you the most money possible. Not only do they have excellent people skills that really get a deal done and done, they also utilize the large network they have, the locate buyers, and they post listings at the appropriate marketplaces.
Get your paperwork in order
If you intend to hand over your busses to a new owner, you need to have all your documents, your contracts, your accounts, and your books ready. They need to be tidy, neat, and organized. Furthermore, none of them should ever be missing. It will make you seem horribly unprofessional, and can even cause problems for the future buyer.
Furthermore, hire a good lawyer to draft up the sales contract. These are very complex when it comes to the sale of business, and should not be ignored.
Conclusion
Selling a business is a hassle, but it doesn’t need to be. If you cover all your bases, hire the right people, you and take care of yourself during the transition period, you won’t have any issue later.