Selling a business isn’t easy. Some business owners spend years trying to find the right buyer, eventually selling to anyone for any price just to get the business off their hands. This doesn’t have to be the case – with the right preparation and support, you can make the process painless. Here are some key tips to consider that will help you sell your business.
Tidy your business up
You’ll find it hard to sell your business at a decent price if there are lots of problems left unfixed or loose ends left untied. Take time to get your business into good shape – try to pay off as many debts as possible, settle any ongoing legal disputes, get your accounts up to date and consider tidying/refurbishing your premises. You don’t have to invest in any major improvements, but you do want to make sure that your business isn’t a mess.
Accurately value your business
Many business owners massively overvalue or undervalue their business. While there’s no set rule as to how much you should sell your business for, the average business tends to be priced at two to three times it’s annual profit. It’s worth having some room for negotiations as this will help attract buyers.
Use the right marketing channels
When it comes to marketing your business, there are a number of strategies that you can use. There are specialist business for sale websites that you can use in which buyers will be looking for businesses to buy. You may also be able to contact other prospective buyers directly – this could include other companies that may be able to buy up your business.
Prepare for the transition period
Once you find a buyer, there will need to be a transition period in which you gradually hand over control to the next owner. This could include introducing the new owner to your team, guiding them through all the processes of your business and helping them to understand projects and clients. It’s important that you make time for this transition period – the new business owner won’t appreciate it if you hand over the keys and expect them to figure things out for themselves and may pull out if they don’t feel informed enough.
Consider hiring professional support
There are professional transition services that you can use to help sell your business and manage the transition period. Such services can help to market your business and help secure a buyer if you don’t know where to look. Most business owners end up using these business broker services – spend your time researching into companies so that you choose a broker that is reputable and affordable.
Maintain confidentiality
It could be harmful if customers, employees or suppliers find out that you are selling up. As a result, you may want to keep this confidential until a buyer has been secured. This means being careful when marketing your business and getting buyers to sign a non-disclosure agreement before sharing inside information on your business.
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