3 Things To Keep In Mind When Selling Your Business
As an entrepreneur, it is highly likely that you will be emotionally attached to your business. Facing obstacles are a part and parcel of conducting any business. If you have succeeded in creating a successful business and want to sell it off, it is possible that you will either under price it or overprice it. In either of these situations, you will not gain any profit. It is important that you get a professional evaluation of your business done, before putting it on a sale. Here are a few pointers to keep in mind when you want to sell your business.
1. Clear Debts Before Selling Your Business
If you use your business as collateral for borrowing more money, then you should also be in a position to repay this amount. If you are unable to repay this amount and as a final resort, put your business on a sale to clear the debt off, your chance of finding buyers is very bleak. Therefore, it is important to note here that, you do not borrow more money if your business has not been doing well. It is good to sell it at this stage and get a good percentage of your business when you sell it. You will have the following advantages when you sell a business instead of mortgaging it.
• You will have a greater profit when you sell a business with a clean record and lesser liabilities to take care of.
• You will get a good quote for your business if you have an accurate accounting record and a good profile in the market, as this attracts genuine buyers and inquiries about your business.
2. Don’t Be Attached To Your Business
There is a reason you have decided to put your business on a sale. If you are emotionally attached to your business, you might end up making a wrong decision, and also, you will be inadvertently driving away potential investors. You should also not micromanage the entire process of selling your business. You can take the help of an expert professional to do the evaluation of your business. You will have to go through a series of experiences when you put your business out on a sale. You will be quoted a lesser price, your business practices will be criticized, buyers too will highlight your shortcomings, and you will have to go through many impediments and embarrassing situations. You can refer to our Canadian business website, Businesses Buy Sell to get more tips on selling a business.
3. Give Control to The Buyer
Your buyer has the freedom to select or drop the employees of your business. You must also openly tell them the benefits and as well as the pitfalls in your business. It is good to use a professional service for selling your business, as you will be protected. You can show the following benefits to your buyer.
• Your buyer does not have to go through the hassle of recruiting new employees or spend on training them.
• If a small business that has a good reputation and a track record is put on a sale, you shouldn’t dismiss their potential for being small.
• If all the machines and assets are in good condition, then you will be at an advantage when you buy this business.