Introduction
There is a lot of effort put in place to make a business successful. It comes with stress, effort, attention, and sometimes, tears. However, a business owner wants to achieve more profit. Just like there are great qualities a business owner needs, a business seller needs the same to be successful.
Nonetheless, several business owners are not good business sellers. Well, the reason may be due to the sellers not putting important factors into considerations.
Factors to consider to be a good seller
- Getting ready for sale
As a business seller, you must have priorities and reasons for what you offer. For example, being involved in sales means you have to decide if you would accept installment payment or allow buyers to hold on to your cash, till they can afford to pay.
Also, you should be able to decide the factors that can influence the value of your business. Price determination, target audience, retirement plans are important considerations that a business owner must decide on before going into sales.
You may need to consult help to be a professional seller – you can hire an adviser who can help examine your business and tell you what to do right to achieve success in sales. Your adviser can be an accountant, legal practitioner, investment banker, tax expert, valuation expert, and appraiser. If you are lucky, you can have a person that can perform multiple roles.
Also, prepare yourself personally as you want to sell your market. Check your financial plan to remind yourself of how much you want to achieve. Create different scenarios in your head to know which exactly would be your short-term choice or long-term option to achieve all goals. You must note that letting go of a business involves a lot of emotions, and you must be ready for it.
- The sale processes
There is a timeline for selling a business – it is not just a one-day activity. It could take up to a year in some cases. However, you can improve some areas of your business before selling it. You can make it more attractive by clearing liabilities, creating more assets, and sorting out necessary procedures for the new business owner.
You can repaint the building (if you have one), take away old documents or files that belong to your brand, and make it fit for the new buyer just as you would have appreciated the place to be.
Also, you can keep operating while sales are ongoing. Maximize your daily activities and see that performances are still as high as they should be. Here is where consultants play critical roles.
There may be some people in your business who needs to be informed about the new ordeal. They could be shareholders, business partners, or even co-owners. You do not need to make a general disclosure to employees, vendors, or employees. It can only cause more panic and lower your selling price.
Get your broker to identify a buy and follow the necessary financial procedures till you hand over the brand to a new owner.
- After the sale of your business is made
In some situations, or based on contract, you may need to stay in touch with some businesses after the sale. You may have been offered an employment contract that expects you to help the new transition. Allow your financial advisors to handle this part because there could be an additional payment for this. Most times, they come as earn-outs or incentives.
Ensure that your accountant makes all the tax documents intact after the sale. You do not want anyone to trouble you with multiple calls that there are some tax issues. Tax payment could be installment but ensure you provide enough details for the incoming business.
Conclusion To be honest, selling a business is a long chain that requires financial and legal considerations. You need all the experience you can get in order not to get duped. Also, take all the time in the world because once done with the sale, there is no going back. Also, you should decide if you want to sell the business once or gradually over the years. Whatever option you choose, be sure to get things right. Why not check here for more information?
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