7 Steps To Selling A Business
Even the most successful business owners end up selling their businesses. When that time comes, selling a business can be a complex venture that involves several considerations. With that in mind, here are seven steps to selling a business:
#
1
Why You’re Selling
Businesses owners typically sell their establishments for a variety of reasons including retirement, illness, boredom, or being overworked. Sometimes businesses aren’t profitable either. In fact, nearly 31 percent of American small businesses are currently not operational. You can help make your place more appealing if you’ve got a strong customer base and consistent income figures.
#
2
Timing
If you’re selling a business, timing can be everything. You should plan for a sale well ahead of time so you can prepare financial records and have all your ducks in a row.
#
3
Document Prep
You’ll need to gather at least three to four years of tax documents and review them with your accountant. You should also have a supply list handy and a list of contacts related to buying equipment.
#
4
Who’s Doing The Selling
Selling a business by yourself can help you avoid paying a broker’s commission and if you’re selling the business to a trusted partner or family member, this is the way to go. But a broker can also help free up your time and help you get the highest price for your business. Careful consideration must be taken either way you go.
#
5
Your Worth
You’ll also need to determine how much your business is worth. By using an appraiser, you can get a fair valuation on your place, which you can then use for a sale or give to a broker to use as a price point for a sale.
#
6
Working With A Buyer
Selling a business may take anywhere from six months to a few years as you try to find the right buyer. Once you find the right potential buyers, you can stay in contact and negotiate with them. Once you’ve reached an agreement, you can draft the paperwork and sign everything over.
#
7
Profits
Selling a business may net you a significant amount of money, but you’ll want to wait a while before spending it. It’s best to create some financial goals and perhaps even invest the money.
In Summary
Selling a business takes careful consideration and by following the right steps you’ll have your establishment sold in no time.
GET YOUR FREE BUSINESS VALUATION
Simply fill out the form below and a Transworld Business Advisor will reach out to you to discuss your valuation in detail.
This is a FREE valuation provided by us at no cost to you.
Contact Us
- Transworld Business Advisors
- (865) 315-7327
- BizInfo@tworld.com