Selling Your Business? Here’s What You Need to Know

sell my business

Selling Your Business? Here’s What You Need to Know

There are many reasons why someone decides to sell a business. Some people will lead you to believe that selling a smaller business is easier than selling a larger one. Home based businesses as well as larger establishments such as retail offices, sports complexes and restaurants will still require the same basic paperwork. It may be a bit more difficult to sell some properties because they require a specific type of buyer, but the sale of the business will ultimately be virtually the same for any type of business. The following are all aspects of selling a business that, when partnered with a trusted business broker will ensure the success of selling your business.

Reasons Business Owners Decide To Sell

When it comes to selling, the decision can be cut and dry or rather difficult. Regardless, it requires a lot of dedication to open and run a successful business and parting ways with it can be quite a roller coaster of emotions for dedicated owners. In some cases, the business owner will try to work staff into the business deal to make the business transition run more smoothly. Trained staff is important when it comes to day to day operations of a business. When selling, the purchaser will benefit from the experience of staff employed from the previous owner, if the purchaser intends to operate the business “as is” from the day of purchase and moving forward.

Selling My Business – Why?

  • Financial reasons may require the sale of a business
  • Retirement with no family member interested in taking the business over
  • Health or family reasons
  • Economy

These are some of the most common reasons a business owner lists when they decide to selling my business. When the decision is made they must reach out to 3 business professionals to get the sale in motion.

These include their:

  • Accountant
  • Lawyer
  • Realtor

What Do You Need To Know When It Comes To Selling Your Business?

Now you know the reasons why many business owners will need to sell. You also know who to contact when it comes to having a quality team of business professionals at your side throughout the sale. What exactly do you need to know beyond thi

Get Paperwork In Order

When you decide it is time to sell your business you must compile the adequate paperwork and keep it together for your selling team.

Necessary Paperwork

  • Profit and loss statements for the current year
  • Profit and loss statements for the past 2 to 3 years
  • Balance sheet of expenses
  • Cash flow statement
  • Survey of the property
  • Appraisal of the business and property

When a serious buyer comes along, they will require all of this paperwork to help them make a sound decision in regards to purchasing your business. They will need to see if it is a profitable business and also determine if the property is worth the asking price. Some buyers may not be as interested in the business as they are land. Larger businesses such as auto repair business, family run small grocery stores or gyms that are located in prime residential areas can often be looked at for their land value. Developers target these types of businesses that are surrounded by homes in the hopes to demolish them and build luxury living. Some buyers want to run the business as is but make their own changes to it to keep it profitable. This is why you must have information on both the operation of the business as well as the land value that the business resides on.

You Are Selling For A Reason But You Still Had Plans For The Business, Sell Those Ideas

Regardless of the reason you are selling your business you most likely still had plans for the future of the business. Sometimes family or health reasons arise that prompt a fast selling of a business. In this incident the owner most likely already had events booked and marketing strategies planned for the next year or so. These plans are in the works and there’s no need to just scrap them. When the potential buyer comes through to view the business make them aware of future marketing plans. This will show them instant profit. When a potential buyer sees plans in the works to bring in more customers and more revenue it helps them envision the property as their own and the profits as their own as well.

Sell The Potential

Once you have sold the potential buyer on some of your business ideas you can continue to sell them on the potential of the business. Do not waste time going over the things you have personally done to bring in revenue for the business. The purchaser will not profit from that and can clearly see everything in the paperwork that you have provided. Rather than waste time talking about your personal achievements, sell the buyer on the potential of the business. Talk about trends in the neighborhood and ways the community can influence the potential of future events and revenue at the business

Be Flexible

There are several times over a business owners’ life that they will be approached from potential buyers. If your business is a very specific niche and you have a buyer interested you may want to be flexible about the potential of selling. Obviously, some selling reasons come out of the blue and you don’t plan on the need to sell. Other times you know that you plan on selling eventually whether it is due to a planned retirement, move or just desire to change career plans. If an opportunity presents itself for a reasonable purchase price you may want to be flexible and consider selling sooner than originally planned.

Stay Focused So You Can Focus On The Future

Having the necessary paperwork and a team of professionals at your side will make the sale of your business easier than anticipated. Be sure to alert your lawyers, accountants and realtor when you decide to sell. Stay flexible and understanding but also proudly display your future plans for the business to the potential buyer. This will all keep the process moving along smoothly so that you can focus on what lies ahead of your business sale. A trusted business broker will accomplish everything mentioned here seamlessly and in collaboration with you.