How to Sell a Small Business - 5 Powerful Tips on Selling a Small Business
Selling a small business is very much different when you are selling certain products and services.
In here, you will need to take into consideration a lot of things to make sure that you'll comply with federal regulations while you generate as much profits as possible.
Here are some powerful tips in selling your small business: 1.
Think of an exit plan.
You may think that this is something that you can put on the back seat but let me just tell you that this is one of the most important things that you need to consider when letting go of your business.
There are quite a few business owners who are backing out from the selling process just because they don't have an exit plan in place.
You need to know what you are going to do after your business has been sold and you need to be 100% sure that you really want to sell it.
2.
Valuation.
For your own protection, I recommend that you hire a certified public accountant who can help you prepare your profit and lost statements together with other documents that can help determine the real market value of your business.
You may also hire an experienced appraiser who can enhance the value of your business.
3.
Hire an attorney.
You will need the help of the lawyer in preparing the contract of sale.
Unlike when selling your car or your real estate properties, selling business involve more complex variables and this can really confuse you especially if you don't have relevant experience.
4.
Hire a broker.
If you don't have the time nor the patience to look for potential buyers, I recommend that you hire an experience business broker who's got great selling and negotiation skills.
This person will be in-charge of advertising and selling your business so you can just relax during the whole process.
You will need to pay your broker up to 10% of the purchase price.
5.
Know the best time to sell.
You'll be able to sell your small business at a higher price if you sell it while the profits are on the increase.
This communicates success and provides your prospective buyers more incentive to buy.
If you'll sell your business when the sales and profits are decreasing, your prospective buyers will have more negotiating power and they'll most likely to buy your business at much lower price.
You don't want this to happen, do you?
In here, you will need to take into consideration a lot of things to make sure that you'll comply with federal regulations while you generate as much profits as possible.
Here are some powerful tips in selling your small business: 1.
Think of an exit plan.
You may think that this is something that you can put on the back seat but let me just tell you that this is one of the most important things that you need to consider when letting go of your business.
There are quite a few business owners who are backing out from the selling process just because they don't have an exit plan in place.
You need to know what you are going to do after your business has been sold and you need to be 100% sure that you really want to sell it.
2.
Valuation.
For your own protection, I recommend that you hire a certified public accountant who can help you prepare your profit and lost statements together with other documents that can help determine the real market value of your business.
You may also hire an experienced appraiser who can enhance the value of your business.
3.
Hire an attorney.
You will need the help of the lawyer in preparing the contract of sale.
Unlike when selling your car or your real estate properties, selling business involve more complex variables and this can really confuse you especially if you don't have relevant experience.
4.
Hire a broker.
If you don't have the time nor the patience to look for potential buyers, I recommend that you hire an experience business broker who's got great selling and negotiation skills.
This person will be in-charge of advertising and selling your business so you can just relax during the whole process.
You will need to pay your broker up to 10% of the purchase price.
5.
Know the best time to sell.
You'll be able to sell your small business at a higher price if you sell it while the profits are on the increase.
This communicates success and provides your prospective buyers more incentive to buy.
If you'll sell your business when the sales and profits are decreasing, your prospective buyers will have more negotiating power and they'll most likely to buy your business at much lower price.
You don't want this to happen, do you?
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