Are you thinking about selling your business? Selling your business is probably one of the most involved and important decisions you will likely make. Often times a business represents decades of hard work. In this article we will discuss some of the key points you need to know about selling your business and what steps you should take when it comes time to sell.
Begin The Sales Process Early
Begin the sales process far in advance of the date that you plan to put your business on the market. An experienced business broker can help you avoid numerous mistakes. A business broker can help with many aspects of the sales process. They can help with strategy and negotiations, establishing the market value of your business, and maintaining confidentiality. A good business broker can also connect you with other seasoned professionals, such as accounts and lawyers.
The right seller psychology is essential. A seller should not attempt to rush or force a sale. Sellers should not attempt to overprice their business. It is vital that a seller remains flexible in their approach to selling their business. Put yourself in the shoes of your buyer and try to think of what they will need to feel confident in their decision.
Statistics strongly indicate that seller financing is likely. Reasonable sales terms will greatly increase the chances of successfully selling your business. Sellers fail to realize just how much interest they can generate by financing the sale of their business. A reasonable down payment is also another way to improve the odds of selling a business. Being willing to offer financing makes a clear statement to a prospective buyer that you believe in the business and its ability to generate revenue.
An open mind and steady temperament will increase your chances of selling. You may want to sell your business and completely move on to other things. However, the reality of selling a business is such that “walking away” may not be feasible. Transitioning your business into the hands of a new owner is usually an ongoing process. Understanding this fact, and working closely with a business broker, will help streamline the sales process and improve your chances of a successful outcome.