Selling a business is a big deal. It’s a lot of work, and there are lots of moving parts involved. It isn’t always an easy process. If you’re thinking about selling your business, here are 10 tips to keep in mind.
1) Know Your Market
You need to know who will buy your product or service before you start looking at potential buyers. Who do they already use? What other products/services would they like that aren’t available from you right now?
2) Do the Research
Find out what it takes to sell your company. How much does it cost to get started with due diligence? Is there any special training required? Are there legal requirements?
3) Get Help
There are many resources available to help guide you through this process. The Small Business Administration, local chambers of commerce, banks, attorneys, accountants, etc., can all be helpful.
4) Start Planning Early
Don’t wait until the last minute to think about how you want to structure the sale. Think about where you see yourself going after the sale. Will you stay in business as a sole proprietor? Or maybe open up shop under another name? Consider these questions early on so you don’t have to scramble later when things come time to make decisions.
5) Be Prepared
Have everything ready to go ahead of time. This includes contracts, financial statements, tax returns, etc. Make sure you have copies of those documents saved electronically if possible. Also, consider having someone else review them just to double-check accuracy.
6) Set Up A Plan B
Just because something doesn’t happen exactly the way you planned doesn’t mean you should give up! Always plan for contingencies. Maybe you won’t find anyone interested in buying your business. That doesn’t necessarily mean you shouldn’t move forward. Instead, look into starting a new venture. Perhaps you could partner with others to create a larger entity. Whatever happens, try not to let one bad experience stop you from pursuing opportunities down the road.
7) Keep Track Of Everything
Write down every step along the way. Include dates, times, names, phone numbers, emails, notes, etc. When you reach milestones, take note of what happened next. Did anything unexpected occur? Was there anything you didn’t expect? Were there any delays? These details may seem unimportant, but they add context to the story. They also provide valuable information for future reference.
8) Stay Positive
Selling a business requires patience. Even though you might feel frustrated by some aspects of the process, remember that most people wouldn’t even dream of doing what you’re trying to accomplish. So, instead of getting discouraged, focus on the positive steps you’ve taken thus far. And, if you run across negative comments online, ignore them. People say whatever comes to their minds without considering whether it makes sense or not.
9) Communicate With Everyone Involved
Whether you’re working directly with prospective buyers or simply communicating via email, make sure everyone knows what’s happening. Let them ask questions. Provide updates. Share progress reports. In addition, communicate clearly. Use plain language whenever possible. Avoid jargon and acronyms unless absolutely necessary.
10) Follow Through On Your Promises
You made promises during negotiations. Now it’s time to follow through. Do what you said you would do. Pay off outstanding debts. Closeout accounts. Send invoices. Deliver products/services. Meet deadlines. Take care of customers. All of these actions will show potential buyers that you’re serious about closing the transaction.
How Business Brokers Can Help You Through All These Processes in Successfully Selling Your Business?
Business brokers can help you sell your business more efficiently than you ever thought was possible. Here are three reasons why:
1) Business brokers know all the ins and outs of the industry. Their job is to connect sellers with buyers who need businesses like yours. As such, they understand the market dynamics better than almost anybody. Brokers know which companies are growing quickly, which ones are struggling, and which ones are ripe for acquisition. This knowledge allows us to identify the best prospects for your company.
2) They have access to hundreds of qualified buyers. Because their clients come first, they don’t just represent one buyer at a time. Rather, business brokers act as intermediaries between multiple parties so each party has someone he trusts to negotiate his side of the sale. By connecting buyers with sellers, they ensure that both sides get what they want while minimizing risk.
3) Business brokers offer comprehensive services. From negotiating terms to managing legal issues to finding financing options, they handle everything from start to finish. That means less stress for you!
If you’d like to learn how business brokers can help you successfully sell your business, contact our experienced and knowledgeable business brokers at Transworld Business Advisors. Call us today and get a free consultation!