Seal the Deal and Sell Your Business Fast!

sell-biz-fastSelling a business can be a daunting task for anyone, even if they’ve been through the process before. Whether you are trying to sell your business because of financial issues or someone has offered to buy your company because of the large amount of success it has experienced, the following tips will help you avoid some of the common pitfalls of the sales process.

Evaluate the Current Worth of Your Business

One of the many mistakes that owners make when selling their business is the asking price.

Before you put your business up for sale, hire a professional to do an independent business evaluation. The appraiser will take into account your assets, debts, potential income and other various factors. Once they are finished, he will write a detailed report that includes an estimate and explanation of how he came to his conclusion.

This report will give you a good starting point when establishing an asking price for your business and may help during negotiations with potential buyers.

Are You Selling for The Right Reasons at the Right Time?

Businesses are often sold when the owner can no longer oversee its day-to-day operations. Ask yourself the following questions before you decide to sell your business:

  • Are you busy with other ventures?
  • Have you fallen ill?
  • Is the current business climate favorable for sales?
  • Are your current clients happy?

Your answers to these questions may determine whether or not you actually sell your business and how you go about the process. If you are selling because you’re too busy with other ventures, don’t let buyers know, because they might use it to their advantage to get a quick sale for a lower price.

If you have fallen ill or have discovered that your business may not sell for the price you want because of an unfavorable business climate, hold off until things improve.

Timing is crucial and can be the difference between selling fast and achieving your asking price and not selling at all.

Business owners are often vulnerable during the sales process. Make sure you’re selling at the right time and for the right reason. Any outside distractions may hurt your chances of getting a good price for your business.

Your Buyers

The average business sale takes anywhere between six months and two years to complete. To get the most out of this time, advertise to the right people and use the right outlets. The following tips will help you when dealing with potential buyers:

  • Find out if they are serious about buying and how they will pay. Do they have financing? Don’t give out any private information before pre-qualifying your buyers.
  • Entertain more than one buyer at a time. This will ensure that you have more options should your initial offer fall through.
  • Protect yourself at all times. Once you have a serious offer on the table, use a lawyer, sign a confidentiality agreement and move the deal into escrow.

Always Be Prepared

Once you’ve decided to sell your business, do as much preparation as possible. Gather essential financial paperwork, bring your accounting up to date and complete any repairs, if necessary.

Potential buyers who offer the right price for your business and who like to move quickly won’t be happy when you’ve told them they need to wait for any requested paperwork. If you aren’t able to produce any information at the drop of a hat, they might move on to the next great deal down the street.

The biggest mistake business owners make when selling their business is not being prepared. Double check yourself, make sure everything is in order and don’t be afraid to reject a deal you don’t like. If a qualified buyer wants to buy your business right away and is offering a good price, quickly and carefully move forward with the sale.