Having one's own business is a great deal of work. It could get overwhelming to the point that you want to let go. Selling a business is an important event where you have the opportunity to reap financial rewards for your hard work and sacrifice. You need to put just as much preparation into the sale of the business as you did when you started it.
How to Sell Your Business
1. Resolve outstanding problems within the business. Spruce up the place. Dispose useless or outdated inventory and equipment.
2. Get all financial documents up to date and accurate. Be ready with the profit and loss records, balance sheets and tax returns, dating back at least three years. Present other documents the buyer will require during the due diligence phase of the selling process.
3. You may promote the sale through local business organizations or networks. Advertise in local newspapers and regional business magazines or newspapers. Join trade associations. They usually offer members free advertisement placements in their publications. The other members can also spread the word around.
4. If you do not have the experience of selling a business, ask other enterpreneurs to recommend the right business broker for your needs. A professional who makes a living selling businesses can sell your business in a timely manner. It will be less stressful for you. A broker has a network of buyers who are qualified and seriously looking for a business to buy. He or she can match your business to a client for a quick deal, or list your business on the former's website and promote it through his or her network.
5. A business appraiser or expert evaluator can help you come up with a fair and realistic asking price for the business. Among the factors to take into account are the current economic conditions, market trends, the terms of payment, the history of profitability, the company's assets, opportunity for growth, etc. Without professional help, you may inflate the value of the company. Setting a very high price may signal that you are not serious about selling. Consider, too, similar businesses that were sold and how much they were valued. You cannot come up with a figure unless you have all the accurate numbers and information ready. Be realistic about your price expectations.
6. Will your current clientele or customers be...