How To Sell Your Small Business

ATLANTIC HIGHLANDS – October, 2008 – As small business owners, you know the hardships in trying to make a business successful. Making a return on your investment is the biggest challenge an owner can face, especially if the owner does not have time or patience to put into selling their business. After struggling for success, there comes a time when an owner needs to sell their business. The following is what an owner might want to consider. Know your reason for selling. A prospective buyer will always ask why you are selling as one of their first questions. The most reliable thing to do as an owner is to be truthful. Using the best possible wording, create a truthful, positive vibe about your business. If you are not truthful, the prospective buyer will eventually learn of the causes later on, which could cause more issues for you as the previous owner. Know the best time to sell. The best time to sell is when your business has started to grow and is on the path to success; it has begun to blossom out of its low time and into its high time. This theory shows the prospective buyer that your business is successful, giving the buyer a greater incentive to buy. It also gives your business a higher value. Know when to get professional’s help. As an owner you should consider using a business broker in the selling process. The prospective buyer will most likely have professional help, too. It is important to find a professional business broker who can read financials and has sold a business before. Know the value of your business. Knowing the value of your business will be very useful when a buyer approaches you. Having a set value, you will have the knowledge to know if the prospective buyer is undermining you with a low offer. A business broker can help place a value on your business, through an appraisal by a well recognized national firm. Know how to prepare your business for sale. Selling your business is like selling a car. As an owner, you must have all your loose ends tied up, deal with all legal requirements, and have all paperwork that the prospective buyer would need all together. The more organized everything is, the more attractive the business is to buy. All sufficient documents and paperwork should be in place. It is also important that the physical appearance of the business is maintained throughout the sale. Know how to find potential buyers. Potential buyers can be found from many different resources, with a good business broker, all the work will be done for you. More importantly, good business brokers are constantly in touch with many buyers, and if the broker belongs to a large network, it gives you even more access to buyers. Applying all these tips in the process of selling will help make a successful sale. Remain patient, and use all the resources you can and the right buyer will surely come along. Contact Achim Neumann if you are interested in selling or buying a business.