Selling your business is a weighty decision, so it must be carried out correctly. Since you've decided this is the best course of action for you, now it's time to see how you can make the process run smoothly and efficiently. After all, there's no reason to drag anything out, and it's in everyone's interest to get things done as quickly as possible. However, keep in mind it's easy to forget a few things and regret them later. This is a delicate process, so you should definitely pay attention to detail regardless of how quickly you want to sell.
1. Determine why you're selling
The first thing you need is a firm reason why you're selling. Potential buyers will ask a lot of questions, and "why are you selling?" will be the most common one. Instead of being blunt and curt, you should recognize this as an opportunity to show them the appeal and values of your business.
They're actually asking you why they should buy the business. This doesn't mean you should lie about why you're selling your business, but try to say the reason in a polite and elaborative way. If your reasons are personal, don't hide that, either, as the buyer may think you're being dishonest.
2. Determine the value of your business
The next thing you want to do is determine the value of your business. You want to be very careful and calculating about this, as it will determine your profit. You shouldn't set your standards too high because that'll push off potential buyers, but you also shouldn't sell yourself short. After all, your business must be worth a good deal of money, and selling is about making some profit.
The hardest part is looking at your business objectively and determining its value based on objective evidence. You can always hire a professional to help you here, as they'll be unbiased and will, therefore, be more realistic.
3. Know your thing
Selling is all about the right timing. You can straighten everything out and think your business is more than ready, but the timing just won't be right and that will leave you without a buyer. Likewise, you may think that you're far from selling, but the timing will be right and you'll have your buyer.
The timing needs to be perfect, meaning that it needs to be aligned with the readiness of your business for sale. Most importantly though, the timing should be based on you. When you're ready for a change and aren't burned out, that's when you should sell. Other than that, sell when your business is doing well and when the economy is good. That's when you know your business is ready and when you'll easily find a buyer.
4. Hire a broker
Since most of us aren't born salesmen, we'll need to hire some help. A good broker can be what makes or breaks your business deal, as they know where to find the buyers. More importantly, they know how to deal with them. A broker will always have your best interest in mind and will bargain accordingly.
What's more, they've been in the business for quite some time so they know how these things go and just what to say to make your deal. Soon, all that will be left to do is signing the business purchase agreements, and both parties will be on their way.
5. Think about what to do with the profit
Now that you've successfully sold your business, it's time to think about what you're going to do with the gain. After all, you now have the opportunity to completely reinvent yourself. You could start another business, but if you're bored of that game, maybe it's time to make a smart investment.
Investing in real estate or the trade market can be a good idea and will give you an opportunity to spend your money with the potential of a profit. Finally, you can decide to save the money for some future project, or you can even spend it all. It's all up to you, but be sure to give it some thought before you make your final decision.
Conclusion
As you can see, selling a business doesn't involve just signing a few papers. It's somewhat of a complicated process with measures set in place to protect both parties involved. By doing things by the book and pay attention to the things listed above, you'll be making a safe and easy sell. You won't have to worry about anything going awry.
DISCLAIMER: The information contained in this article is for informational purposes only and is not legal advice or a substitute for obtaining legal advice from an attorney.
Guest Author
Daniel Brown is a law graduate and a passionate blogger from Sydney. His areas of interest are alternative dispute resolution and its applicability in different fields of law, IP law and resolution of disputes arising from intellectual property infringement and commerce law.