Selling a business might be necessary for a number of reasons. Maybe you’re a business owner who is reaching retirement age and you want somebody to take over from you. Maybe you just don’t have the time or the money to keep the business up and running anymore. Maybe you’ve lost interest. Maybe selling businesses is what you do for a living. Whatever your reasons, this post can help give you some useful advice:
You Won’t Get More Money for Potential
You might think you’ll be offered a lot of money for your business because it ‘has potential’. However, this isn’t the case. You’ll never be offered more money no matter how much potential you think your business has. People who buy your business will want to see how well it actually does before giving you any of their money. It’s all about the facts for business buyers.
Don’t Rely on Past Success
Your business may have been successful in the past, but you can’t rely on past success if you’re going to sell your business. You’ll need recent stats and figures when selling your business, recent being the last 12 months. However, if you can show that your business has steadily increased in success, this could stand you in good stead to sell your business for a decent amount of money.
Be Honest and Transparent
Make sure you’re nothing but honest and transparent when selling your business. Don’t try to cover anything up. All businesses have highs and lows, so the best thing to do when selling your business is be upfront about them.
Know the Law in Your Area/Business Type
Laws in different businesses will vary, so make sure you know the rules you have to stick to to sell your business. You’ll also need to take into account tupe law and regulations in regards to your staff.
Be Prepared to Answer Many Questions
When you’re selling a business, the people who are interested are going to be potentially giving you a lot of money for it. This means they are going to want to know the answer to even the smallest of questions. Be prepared to answer a million questions, no matter how small. It’s really important you know your numbers and facts if you’re going to persuade anybody to buy.
Be Able to Back Up Your Claims
One of the most important things when selling your business, is being able to back up your claims. When you can back up your claims, that’s when a potential buyer will be even more likely to buy. It’s all well and good being able to talk the talk, but can you prove that your business walks the walk? Make sure you have the legislation and documents to back up your claims handy. Potential buyers don’t go for excuses and they certainly won’t just take your word for it.
Once you’re clued in on everything in this guide, you are ready to sell your business. Remember; honesty is the best policy. Good luck!