Because there are many businesses properties for sale and you sell yours once, you have to do it the right way and as profitable as possible. When you think about selling your business, only the thought can keep you awake all night. In order not to face even more difficulties, you can begin preparing for the sale thinking about the steps you can take to make things go faster.
While each business property transfer has its uniqueness, there are still some questions that the sellers have to ask themselves and there is also a common process for all small business sales. First, ask yourself the following three questions:
1. Can your business be sold?
Many of the items of a business make it attractive to buyers: if it has a profitability history, a large base of loyal customers, competitive advantages (long-term contracts with customers, exclusive distributors, etc.), growth opportunities, an excellent location and competent work force?
2. Are you ready to sell?
Make sure that you are ready both on financial and emotional level. Think about how life will be after you sell. What are you going to do – not just in money terms, but also time? Most business owners feel like they were not prepared to do so only after the process is completed.
Yet, there are some pointers that will help you decide to sell:
*Loss of enthusiasm and interests is really a problem for business owners, and a proper reason to sell.
* You are not willing to invest in business growth. You can be satisfied with the current size and profitability of your business but do not want to make the capital expenditures required to move to the next level.
* Do you feel that your management skills are outdated and cannot keep up. It’s not uncommon to build a business up to a certain level and then realize that you lack the necessary qualifications to go on.
3. What is the value of your business?
Many business owners have no idea. Selling a business is both an art and a science, and this more evident in valuing a business then in any other areas. The fact that every seller is willing to reach a maximum value, setting a high price, can make buyers understand that you are not serious about selling.
Although there are several methods to determine the value of a business, the most common formula for smaller transactions is a multiple of discretionary earnings of the seller. This type of evaluation based on market values involves processing statements of profit and loss to find the multiple, and then, using comparable data from other similar businesses will reach a correct multiple.
Start preparing your business for sale
The intensity with which the buyers will examine your business cannot be in any way overrated. But here are a few things to start with when the time is right.
First, make orders through papers. Failing to present accurate financial statements at the right time may result in loss of customers. Make sure you have the following documents on hand before going on the market: the statements of profit and loss in the last three years, balances for the last three years, current balance, tax returns for the last three years, list of furniture, appliances and equipment, inventory list, commercial evaluation of the property or lease contract.
Be prepared to make available other documents when you will be probably asked insurance policies, employment contracts, contracts with customers, lists of patents, equipment leasing and account statements.
You probably want to promote your business to make it attractive to buyers. Make any needed cosmetic improvements to your headquarters, get rid of obsolete inventory and make sure that the equipment is in good condition.
Spread the word about it
Not surprisingly, most wise buyers use the internet to research businesses available for sale. So take care of business website and improve communication with customers on social networks. Or even better, list your business on sites dealing only in such matters , for example: Businesses-properties.com.