There are many factors to take into account when you are estimating the cost of your business and what to sell it for. The difference between what you take into account and what you don’t can cost you lots of money.
Here are the main things you want to look for:
- Reviewed accounting records
- Documented business operations
- Review marketing plan
- Consider a business broker
- Target specific buyer prospects
- Plan for due diligence
- Cooperate for a successful transition
Your businesses’ accounting records will reveal a lot of potential to the buyer. When trying to sell a business fast and for the maximum value you want to have accounting records that contain:
- Accurate and up-to-date records that will comply with accounting standards
- Annual business forecasting, budgeting, and planning
- Cash flow management and forecasting
- Dashboards and metrics
- Industry analysis and benchmarks
Having current and accurate data for all of these topics will help you sell a small business fast.
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Documented Business Operations
Very important thing buyers will want to know is how the company is operated daily. Having great documentation of such things as production, billing, and fulfillment is crucial in having a successful business and the buyer will want to review these things. Plan on having:
- A procedure manual
- Organization chart
- Current customer and supplier employer agreements and contracts
- Automated processes documented
Review your Marketing Plan
To have growing sales and profits it’s imperative that you have a successful marketing plan. This method will differentiate your product/service from the competition. The buyer will want to know this plan and depending on how great it is, will incentivize the buyer to drive sales and profits once they purchase. The purchaser will want to be confident that they can do this strategy themselves to make more profit once they buy.
Consider a Business Broker
Especially if it is your first time, and you need to sell your business quickly, it is crucial to find an experienced broker. There are a few points to consider while you’re looking.
- Look for a qualified business broker
- Obtain a current business valuation
- Develop a marketing plan
Be able to explain why you’re selling, (a broker can help). Selling a business is a huge decision and a broker shouldn’t be taken lightly in helping you through it.
Target Specific Buyer Prospects
It’s important to look for what kind of buyer would want your business, whether it’s a competitor or private equity firm. A broker with experience will be able to find potential buyers and vet them to see if they make a good fit.
Plan for Due Diligence
Having an organized and complete set of records before you even start looking for a buyer is a great plan. Among these records, you should display its hidden value that could easily be overlooked. Having everything in line also cuts down on buyer fatigue and keeps the transaction on track.
Cooperate for a Successful Transition
A successful sale will have a good effect for the buyer and seller, being proactive about a smooth transaction will work in everybody’s favor. Communicate with the stakeholders (vendors, employees, and customers) to allow an effective transition after the sale and be ready for questions and concerns.
Save Time When Selling Your Business
Selling a business is very time consuming and can be a big emotional and financial decision. If you want to maximize your profits and sell fast implement the tips above and find a broker to help guide you through this process. You will have a successful business sale in no time.
About Carson Derrow
