Selling a business is a big challenge. Entrepreneurs need to make sure that they optimize the worth of the business they’ve built for years. The experts at Transworld are here to guide you through the selling process. Buyers in the market are not looking to buy from just anyone either. They need to have the confidence that the business is in good hands. Here’s what you need to know about your business saleability.
Your Business Should Be Profitable
This seems like an obvious point, but it is surprising how often we get calls from business owners who are considering selling their businesses because it is unprofitable. This is a huge mistake.
A business could be unprofitable, but still have a lot of value. Choosing a business to sell can be difficult. That is why we provide so much in-depth analysis of the businesses we sell. Our process is designed to help you understand the business and its potential.
We begin with a fact-based due diligence process. To be a good business owner, you need to know your business. This process will help you do that. We evaluate your business for sale and get to know you.
There is a tremendous difference between being unprofitable and being unprofitable at a price. Unprofitable is just that, the business is not profitable at the prevailing price, and that price is the market price. The market price is determined by the market.
The market is determined by the aggregate buying of buyers and the aggregate selling of sellers. So the market is a driven price, the market price is driven by the aggregate of the buying and selling. And that is where the market price is determined. And that is where the market is determined.
Leverage and Improve
One of the wrong moves business owners make is to take their foot off the pedal the moment they decide to sell the business. Their focus shifts from the business to the sale. They don’t believe in what they’re doing anymore and not surprisingly, neither do their customers.
In fact, it is often the case that the business owner is forced to sell in order to pay off debt or simply to alleviate the pressure of a failing business. For this reason, it is important to think about exiting options and strategies long before the pressure becomes unbearable.
This holds true for any business owner. If you don’t believe in what you’re doing, why should anyone else? This is why it is crucial for entrepreneurs to remain in love with what they are doing.
Showcase the Standout Factor
Deciding to sell your company is a marketing challenge in and of itself. It’s important to show your product or service to potential buyers in order to distinguish it from the competition. This can range from your company’s proprietary technology, to your unique business model, to the compelling nature of your team. You should also consider anything that might make your company attractive to investors. For example, one of the most valuable assets your company may have is intellectual property (IP).
Once they’ve seen it, you need to make sure that you’re as attractive to them as possible. It might be surprising, but one of the advantages of selling a company is that you can actually lower the amount of money that you have to pay in taxes.
Find the Most Reliable Business Broker
The entrepreneur’s biggest fear in selling a business is that they will be pressured into selling at too low a price. The buyer’s biggest fear is that they will not be able to close the deal. When you have a motivated seller and a motivated buyer, the fears are bound to get out of balance and it is in the seller’s interest to get the deal closed. But, it is difficult to do this on your own.
Your business will also need to be on the market and listed with a business broker who can generate the interest and show prospective buyers through your business. If you would like to get an indication of your business’ value and find out how to prepare it for sale, our expert business brokers at Transworld Business Advisors Palm Desert can help.
Transworld has a team of professional brokers that specializes in business sales through different industries for more than 40 years. We are available to talk to you about how to sell your business and determine its most favorable value. If you have a business that you think may be worth selling, you have come to the right place. Contact us to learn more about how we can help you.