Many circumstances may make you want to sell your business. It could be because you need the cash for something else, business is declining and you want out before you start losing money or you simply want to retire and enjoy life. Your reasons don’t matter as much as getting top dollar. Here are 5 tips to sell your business fast.
1. Advertise aggressively
You can put up ads in the media or on the web. The web offers the best platform though it can sometimes be a bit expensive. Run the ads consecutively, and chances are you will get a buyer soon. The good thing about ads is that they are likely to land serious buyers because it’s the people looking to buy businesses that will scour through these particular adverts. Here is a video of some of the sites you can list your business on.
2. Identify and reach out to buyers
Look for people who are likely to buy your type of business. Personally call or email them and request them to make an offer. Arrange to meet them to discuss the business. You can even take them to your business do they get to know what they are buying and also to allow the to estimate the value of the business. Look to your competition to see if they want to add your business to theirs.
3. Have documents to be signed on the ready
Make sure you have all the agreements and contract documents ready for signing. A delayed process is likely to make a serious buyer change mind and look elsewhere. You may appear as unwilling or unprepared to give the business away.
4. Have financial statements ready and well arranged
Potential buyers will ask to have a look at them, and you need to have them ready. This will speed up their decision making regarding purchase of the business. They include balance sheets and profit and loss statements. Work with your accountant to make sure that everything is in order.
5. Suggest partners to potential buyers
You can offer to look for people who would partner with your buyer to buy the business. This way, the buyer will feel encouraged to participate because they will share the costs. But you should ask them beforehand how they would feel about it; You don’t want them to feel like you are imposing it on them, or that you are underestimating their worth.
By following the above tips, you will be able to sell your business quickly and avoid unnecessary delays.
Buying a business, just like buying any other item is a process that requires due diligence and thorough research before committing your hard earned money. There is an endless list of items you should check and questions you should ask but arguably the biggest question to ask has to concern the financial health of the business you are looking to acquire.
Failure to do your homework and thoroughly inspect the financial health of a business before putting pen to paper on the purchase agreement can lead to failure of business immediately after acquisition or inflation of costs required to run the business. While it’s a given that acquisition of a business calls for far more due diligence than just the finances, finances are the reason why we do business so we this article looks to guide a prospective buyer on some of the basic aspects to look into before purchase of a business.
Inspect balance sheets, profit and loss statements, annual reports, cash flow statements of the past for a particular period e.g the past three or four years.
In the event that the statements aren’t evaluated, you’ll have to check the numbers against autonomous sources, for example, sales records, statements from the bank, invoices and loan documents.
Audit their profit and loss statements:
*Can the business create enough cash to give you a sensible salary and get a profit as well?
*Look at the rate of development profit, sales and expenses .
*Could there be any new or expanded costs you ought to anticipate?
Audit cash flow records:
*Know the accounts records thoroughly before you purchase.
*Are there any income or debtor issues?
*Are their bills being settled in a timely manner?
*Who are their key loan creditors?
INSPECT TAX RECORDS
Some business evade taxes by misrepresenting their tax returns either knowingly or unknowingly. It’s important to check the tax compliance of a business before you acquire it in order to avoid inheriting tax burdens and penalties from the seller. Ask for tax certificates if any and do your research,which could include consulting your countries tax authorities.
In some cases the entrepreneurs may misuse the business for individual needs and gains. They may purchase personal items and charge them to the business and so forth. You need to employ your analysis and those of your bookkeeper, to figure out what the real monetary value of the company is.