Business sales are a serious task that requires concentration and extra work. This is not just a sale of the product sold on the social networking market. So how do you prepare for business sales? This question is asked by everyone who sells their business for the first time.
We share some practical tips that will help you shape your thoughts and plans.
Define what you are selling:
"Selling a Business" is a very broad concept with many meanings. In one case, it's a business idea with company registration and certain assets, otherwise it is a business principle and a list of customers, and the third is immovable property and liabilities. Therefore, when selling a business, you first need to review material and other assets, obligations, knowledge and business recipe.
And the business itself is different, it can be retail or wholesale, franchise, service business or real estate business to develop. Decide what is being sold. And all this needs to be clearly stated and described in the announcement, so that the potential buyer will understand well what you really are selling.
Why should a buyer buy your business? Proving and convincing is not easy, so please gather all the facts that are good for you. For example, what is your business turnover and how much profit you are, thus calculating how much time a potential buyer will pay off his purchase.
Do not forget the reasons that will lead to an improvement in the business situation in the near future, for example, you may sell the hotel, and a nearby hotel will be launched after a year of high tourist traffic. Or perhaps you are the only one in the region to provide such services and your business has a guaranteed customer base. Goodwill, reputation, brand identification, or company name recognition are also part of the purchase. If your business name in your area opens you all the doors, please provide this information as an advantage.
For such things, the benefits of your business need to be mentioned, because it gives the buyer a business perspective and more incentives to buy. Benefits and a well-presented vision of the future can help sell even a business that does not have a lot of assets, or maybe only have a business name and office.
Manage your accountancy:
Although it is possible to sell the company and disorderly, so-called, neglected bookkeeping, it's better not to give the buyer a "hook" for bargaining and lowering the price. Take time to organize your bookkeeping, balance ups.
If you do not have a regular accountant or do not have the ability to do all the work, then contact the company providing accounting services. Professional accountants can book your account fairly fast enough to sell your business more easily.
By the way, managing not only bookkeeping, but also other documents. If the business you are selling requires licenses, permits, put them in one place, see if they are expired, valid if you need to update them.
When you have everything at your fingertips, you can put a potential buyer in front of them, business will immediately gain a higher value. Make all the conditions for the buyer to continue your business right away, so the buyer will not negotiate the price.
Post a real price:
The business being sold, like any other product, has its own market price. Find out how much you can actually get for your business, consult business sales brokers or business consultants. You can also self-assess how much assets are sold, what kind of business profits are and how much it will pay to a buyer over the years.
If a business has a variety of objects, such as premises that are not essential for business development, divide the business, sell the premises as a separate object, then the business price will be lower and more attractive to the customer, and you will not lose money because you can earn even more by selling them.
We hope that these tips will be useful to anyone planning to sell their business and will give you an impression of how to prepare for a business.