Selling a small business is a complex process. It can involve several considerations and steps along the way, as well as the investment of time and energy. Alongside the practical aspects, there can be an emotional side to selling a small business as well. This may be a start-up venture that you have put many years into making a success, and you want to ensure that its future is secure in the right hands, as well as making sure you are profiting as much as possible from the sale. Despite the many complexities, there are several actions you can take that will help to streamline the process and help you come away with the best deal.
Make Your Business Attractive
There are many reasons why people sell their business, including lack of profits. However, in order to attract buyers, you will need to make sure your business is in as healthy shape as possible. Factors that it will be useful for you to address include building profits if you can, ensuring you have consistent income figures, and a strong customer base. It can also be very helpful if you have any ongoing or long-running contracts associated with the business, as this will make it an attractive prospect for future owners.
Prepare Your Documents
To ensure any sale runs smoothly, you will want to ensure you have all the necessary documents prepared well ahead of time. There are legal requirements for the sale, including replies to CPSEs and any Building Regulation Documents. However, you’ll also want to provide buyers with an extensive information packet regarding how the business is run, potentially including an operating manual. It will be useful to gather financial statements and tax returns for review.
Plan Your Timing
Just like selling a house, there are peaks and troughs in the market for selling a business. Keep an eye on any trends, and try to time the arrival of your business on the market at the best possible time. It’s also worth waiting until you feel fully prepared with all your documents before you launch the attempt to sell, as this will prevent you from falling prey to rushed, shoddy organisation that could jeopardise any potential sales.
Get a Valuation
A valuation of your business can be a vital tool in proving its worth to potential buyers and ensuring that you are receiving the right payment. The best way to receive a proper valuation is to get in touch with a professional business appraiser. They can be a vitally objective outside eye, and they will take responsibility for producing a detailed explanation of your business’s worth, giving your asking price credibility.
Proactively Seek Buyers
Finding the right buyer can be one of the most challenging parts of selling your business, taking anywhere up to two years to get right. You will need to spread the net wide, but it’s also worth contacting business associates and personal contacts to get the word out, as well as using multiple advertising platforms. This will help put your business in front of the right eyes and make sure you can sell it as quickly and as profitably as possible.
