You definitely need a plan if you are looking to sell your business at a profitable price, and at a reasonable timeline. Just like you’ve worked hard to increase the sales figures of your business, you’ll need to take the same degree of initiative to achieve success when selling your company.
Whether you are looking forward to closing a deal as quickly as possible or want to get maximum profit from your sale, you’ll need to come up with a strategic approach to prepare and complete the sale of your business and meet your set goals.
Here you’ll learn more about the key strategies I used to sell my business in a quick, smooth and easy way.
1. Let Professionals Value Your Business
Due to the many factors involved, valuing a business is not easy. Factors such as financial history, asset value, location, competition, industry standards, customer base, current management challenges, etc. will determine what your business is worth.
But with the help of a third-party firm, this burden will be taken off your shoulders. By taking into account these factors, a third-party firm will give realistic estimates of the value of your business.
They will then use these estimates to come up with a credible asking price.
2. Streamline Your Business Operations
One of the ways to maximize your business sale is to run it optimally. Sounds obvious, right?
But many people make the mistake of selling their business when they are running losses and underperforming. This approach leads to poor returns from your business sale and regrets.
If you must list your business due to poor performance, you should find ways to ensure that it stands a better chance of selling it successfully. This includes optimizing your daily operations.
Ensure your shops or premises are renovated, your operating licenses are up-to-date, create new advertising content and take any other steps that will ensure your business is running smoothly.
3. Clean Up Your Business Financials
In the current economic environment, buyers are not only looking forward to buying profitable businesses but also those that are viable in the long run. For this reason, buyers take time and do due diligence before deciding to make an offer.
Potential buyers will consider a lot of things, from business financials, equipment, and real estate before deciding to take over your business. You should, therefore, ensure your business financials are in order before listing your business for sale, as this will increase your chances of making a profitable and timely sale.
4. Have an Exit Plan
Did you know that having an exit plan is a key component for the success of your business? Yes, you’ve heard me right.
And with the many unexpected factors that can force you to sell your business such as illness, aging, competitiveness, lack of a successor, etc. you will be safe if you will have an exit plan in advance.
Business experts advise that business owners should develop an exit plan one or two years in advance as it is a key component of a business plan. In addition, an exit plant will help you put things such as financial records and customer base in order as this can help attract more potential buyers to your business.
5. Seek the Services of a Third Party Broker
If you’re looking to get maximum value from the sale of your business, be sure to find a business broker. A business broker will help you in valuing your business, initiating negotiations as well as helping perform due diligence to ensure a profitable close.
In addition, a business broker will help you to market and locate potential buyers, going to the extent of listing your business on various marketplaces so it can fetch the best price possible.
One of the most challenging parts of selling a business is due diligence, but a good broker will take you through the entire process giving you time to concentrate on running your company.
6. Boost Your Sales
It is obvious that a business with healthy returns and multiple sources of revenue will attract more buyers within a short period.
Therefore, you’ll need to improve the overall performance of your business so you can increase your profits and also your business value. Remember selling your business when it’s performing poorly can hurt your returns significantly.