How Do You Start Planning to Sell Your Business?
Updated On November 17, 2022 | by Samara Davis
Owners decide to sell their businesses for a variety of reasons. Some owners are no longer bringing in the same money they once did and can’t afford the operating costs. In other cases, owners decide to retire after decades of successful business ownership. No matter the reason for selling, owners can follow some strategies for an effective sale.
Evaluate the Market
In dire circumstances, business owners may not have the option to wait to sell their companies. However, when you’re interested in selling your business, but are not in an immediate rush to do so, examine the market. Research the price at which similar businesses are selling. See how quickly such companies are being purchased in the area. If the market is slow, waiting a few months or a year could be the best move.
Get an Expert Estimate of your Business’s Value
Owners can get a sense of what their business might sell for by looking at comparisons in the neighborhood, but an estimate from an expert is absolutely necessary. Even if two businesses appear to be identical, a professional evaluation can reveal important differences when it comes to establishing a selling price.
Also, can read: 15 Brilliant Real Estate Marketing Ideas to Grow Your Business
Develop a Target Audience
Tailoring for-sale ads to a specific audience is an effective way to market a property. Current owners will need to decide if they are selling the business as an entity, the business space, or both. In other words, some owners sell their business to another person who will take over the company. In other situations, current owners are selling the property where the business is located.
Prepare Financial Information
Marketing to new prospective owners involves preparing financial details. Prospective owners are going to want to know about the financial health of the business and projections for the future. Owners should prepare this information in a clear and organized fashion before putting the business on the market. The financial health of the business is one of the first questions that potential buyers are likely to inquire about.
Work with a Professional
Working with a real estate expert who specializes in commercial properties is advisable. Agents who typically work with residential properties may not have the expertise or knowledge to successfully navigate a commercial transaction.
Envision what potential buyers might want to see in the building and how the current aesthetics of the business space could be limiting. For example, the owner of a themed restaurant may want to take down some of the decorations so prospective buyers can better envision their own restaurants in that space. A shop owner with clothing racks and stocked shelves lining the store should make the shop look more spacious and less cluttered.
Take Appealing Pictures
The sale of any property or entity benefits from the use of professional photos. In fact, if the pictures of the business are poor, prospective buyers might question the company’s financial health. Crisp, clear images that showcase the strengths of the company and its space can make a serious difference in terms of selling the business.
The decision to sell a business is an easy choice for some and a more challenging process for others. Once the decision has been made to sell, taking specific steps ensures a smoother process.