If you’ve decided, the time to sell your business has arrived, follow these 5 tips to ensure maximum profit. You’ll be happy you did!
Way back when you first started your business, you likely didn’t think about selling your business down the road, or maybe you did. After a number of years of working really hard and turning your business into a success, you deserve to get fair market value or higher for your business.
1. Establish the Value of Your Business – There are a number of formulas that can be used to determine the value, but it will include assets, cash flow, gross revenue, growth, and other factors.
2. What are the True Financials – A small business legally reduces profits to enjoy the best tax breaks. However, then when you are go to sell your business it will not reflect the real value of your business, which is why you need to establish the true financials.
3. Consider the Financing – If you want to sell your business quickly consider carrying the person who wants to buy your business. Most small businesses are at least 75% owned and financed by the owner. Increase the likelihood of a sale by offering to finance for 2 to 5 years at current interest rates.
4. Keep it Quiet – Contrary to what you might think, you should not be telling the world your business is for sale. While this might bring you good exposure, if your suppliers find out they may close your line of credit or accounts payables. So hush!
5. Use a broker – A business broker will help you establish the right asking price to generate a sale. Your broker will also qualify before releasing any of your personal information or exposing your financials.
Now that you’ve decided to sell your business, you need to analyze it. When you’ve been running your business over the years you might forget the real selling features of your business and its actual value. So sit down, grab a pen and paper, write down a list in detail about your businesses benefits including the perks that are relevant to your business. It doesn’t have to be neat, just write what comes to your mind, and later you can tidy it up.
These 5 tips for a successful business sale will ensure your business sells and that you have the cash flow you need to start your new life adventure.
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