How to Sell Your Business in 5 Easy Steps.

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Are you looking to sell your business but don’t know how to sell? Well, you are in the right place. The most important part of selling a business is making a profit. However, selling a business can be quite challenging. You need to make sure that everything about your business is in good order to attract a prospective buyer. And to help you make the process seamless, here are tips on how to sell your business.

First, let’s look at the types of business sales to help you make the correct decision.

  • Asset sale.An asset sale is a type of business sale where you are selling either the tangible or intangible assets that your business owns. Examples of physical assets include equipment, inventory, buildings, land, inventory and cash. Intangibles assets, on the other hand, include trademarks, patents, copyrights, goodwill and client lists. 
  • Share sale.The share sale is also known as a stock sale. In this type of business sale, you are selling the company’s shares and not the assets. Good thing about share sale is the liabilities that are included in the sale.

Factors to consider before a business sale.

People sell their businesses for various reasons. However, there are factors to consider before closing the deal with your potential buyer regardless of the reasons. Below are some of the crucial factors to consider before selling your business.

    1. The selling price.To make sure you sell your business at the best price possible, you need to analyze and come up with a reasonable selling price. Consider the annual business earnings and its potential growth. Also, consider the assets in the business. You can sell some of these assets to clear off any debt the company has.
    2. The employees in your business.Remember that the seasoned employees you have in your business are also assets. You might want to consider them as assets during the sale. Also, chances are, your potential business buyer is one of your employees. Be sure to ask from those you trust because they know your business well and could make the selling process more manageable.
    3. The business’s assets.If you have a strong client base and long term and well-trained employees, you might want to consider them as assets. Other types of assets also include patents and trademarks. You can either sell them or licence them to the buyer and remain the owner.
    4. Agreements.Ensure that there is a proper agreement between you and the buyer. Sometimes, letting go of a business you’ve worked so hard for all your life can be challenging. Agree with the buyer whether you can offer consultation to the company or not. Also, to avoid any future conflicts, the buyer may want to sign an agreement that you will not be a competitor to the business.

Tips on how to successfully sell a business.

    1. Have an exit strategy.When selling your business, it is vital to have an exit strategy in place. Some of these strategies are that you should know your business well and be prepared to answer all the questions asked by the buyer.
      Some buyers will want to know why you are selling the business. It is good, to be honest here to make the sale process seamless. Also, potential buyers will want to know if the company has ever had any legal issues. Be sure to have a licensed person to help you with some of the legal issues (if there are any).
    2. Determine the selling price of your business.You are a business owner, and it is up to you to determine the best selling price. You might want to use business valuation services from a third party or do it yourself. If you are doing it yourself, you should consider your business’s annual earnings, its potential growth and assets. Appraise each asset individually and come up with a total price.
    3. Make sure the financial statements are in order.One of the most important things buyers check when buying a business is the financial records of the company. Make sure that everything is in order. You can hire an accountant to help you clean up your financial statements. Your business’s financial statements need to be clean and without any tax issues.
    4. Make sure that your assets are in good condition.To sell your business at the best price, you should ensure that your assets are in good condition. You can repair those assets that need repair and renovate the old buildings. Fix the furniture before you sell them. Clean your property and make sure that everything is in good condition. You can let the buyer know about the properties/items you are not able to fix.
    5. Advertise your business for sale.Once you have everything in order and ready to sell your business, it is now time to let people know that you are selling your business. There are different ways to advertise your business. You can hire an expert who deals with selling of businesses or create a sale posting on websites. You can use service providers like Corido Marketplace to help you sell your business. Corido marketplace can link you with potential buyers, valuation experts, selling agents and business lawyers.

    You can as well go through a business sale guide here

    Are you ready to sell your business?

    Selling your business is not as hard as you think. All you need is a proper strategy to make the whole process easy and fast. Work with professionals who understand the ins and outs of selling a business. Hopefully, the above tips will help you close the dean and get the best out of your business.
    Ready to sell your business?
    Get in touch us on [email protected]

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