Selling a business can be a lengthy process, which is why it’s never too early to start the planning process. A lot of experts agree that you should aim to start a year or two ahead of time. It’s understandable that you might not want to hold on to your business for that long, but it will give you plenty of time to improve your financial records, establish a strong business structure, and build up a dedicated customer base that will help to make your business more desirable to the proprietor that takes over. This consistency in preparation also helps during the transition between owners, and goes along way to ensuring the business thrives long term.
Not only do you need to ensure that your financial records are all in order, you want you business to be attractive to more potential buyers. Take a look at your business from the prospective of a new buyer, and identify and address any underlying issues that could possibly affect the sale of your business. You should also make sure that you can answer any questions with facts and figures, to help install as much confidence in your business as possible. Potential buyers will also look at things like if your business is in a good location, looking at issues such as what your business is close to. A positive first impression will determine your buyers mind set, and what they are willing to offer you. So, get rid of that old stock, give your business a fresh lick of paint, fix or repair any areas of the business or equipment that is broken, and make sure you have a neat and tidy office space/spaces or retail space. Those small touches will go a long way to finding someone who will say yes to your business for sale.
When selling your business you want to make enough money to go on to do whatever your next plans entail. However, if you overprice your business considerably, this could leave your business sitting on the shelf, and you’ll have to discount the price heavily when you become desperate to sell. By obtaining a professional business appraisal, they will give you a detailed explanation of what your business is worth, and you can use this as a gauge for your listing price. As well as a business appraisal, you should create a document with a summary that shares details of your business and how it is run. Having a valuation as well as your financial statements, tax returns, list of contacts for sales transactions and supplies, can all help in showing potential buyers the worth and scope of your business. Have copies of these documents on hand to share with interested buyers. You should aim to make your sales proposal AND your business as presentable as possible, not one or the other, as this will go a long way to getting a guaranteed handshake and signature for the sale of your business.
When it comes time to sell, a local business broker Melbourne provides invaluable support. As a broker, they are already connected to a network of interested buyers and investors. They are also experts at negotiating because of the trust they already have with buyers. With that trust instilled, there’s less chance of something going wrong that can diminish the offer, or kill the sale altogether. The business of a broker depends entirely on presenting your business in the best light to the right buyers. In reality, a business sale can take anywhere between six months to two years, so if you have a professional taking care of the sale during that time, you can instead focus on keeping your business up and running.
Having a small business for sale is often a time-consuming and difficult venture. By keeping in mind these 4 tips, you will take the burden off while getting the result that is most desirable for you. To help get you started, speak with a dedicated team of business brokers in Melbourne today. At AJW Business Brokers, we are happy to get your business sold.