Selling a small business can be challenging and emotional. You need to plan the sales of your business well ahead of time for the best price. A hasty sale might mean having to make adjustments to your asking price. Read the following steps as you make a list of How to sell my business. They will help you sell your small business easily and maximize profit.
- Get your financials in order: Before placing your business for sale, the most important thing to do is to get your financials in order. Financial statements, loans if any, profit and loss statements – be particular about keeping all this information in order.
- Determine the value of your business: What is your business worth for real? What price can you demand? What is its market value? Don’t just think of how to sell my business, but be proactive in your approach. Get your business appraised professionally. Financial statements, liabilities, and assets contribute to the value of your business. If you don’t have access to a professional appraiser, you can use an online valuation tool. They do a good job to place an estimate against your business.
- Identify potential buyers: The best buyers for your business are people who understand your industry or niche. Every business owner desires to sell their business to someone passionate about it. To determine the best buyers, use business listings, online marketplaces, a network of friends/family and professionals, and the strength of social media. You can ask the potential buyers if they have enough capital to make the purchase or if they are approved for loans. This will help you determine the best buyer. Don’t hesitate to ask for their financial statements, this will show you whether they can put down a down payment or not.
- Hire a business broker: If you want to sell your business at a maximum profit, you should hire a professional broker. Business brokerage means hiring a professional business broker to help you land a better deal. A good business broker will find and identify solid potential buyers, they will weigh the buyers and recommend the best fit for you. They will negotiate sales keeping your best interest in mind and ensure that the transaction runs smoothly. Keep in mind to hire a broker with experience in the industry and a good sales record. The best business brokers in Florida are Murphy Business & Financial Corporation, Transworld Business Advisors, and Sunbelt Business Brokers.
- Prepare your business for sale: Before you put your business up for sale, do your due diligence. To maximize profit, you must make sure that your business is in good shape and has a good credit score. Positive financials, legal issues, permits, websites and their content, marketing strategies, and materials mean a seamless business transaction. Additionally, you must diversify and improve your customer base and ensure that the best team is running your business. This will make sure that the business function smoothly even after your exit.
- Price your business appropriately: What is a fair price for the sale of your business that meets your financial and personal goals? Be very careful in asking for the right price. It is best to use professional services to determine the market value of your business
- Market your business: Use professional marketing channels, social media, and professional networks to market your small business to potential buyers. Create a sales pitch, place advertisements on websites and relevant social media, or reach out directly to potential buyers if you know anyone who might be interested. Additionally, if you have hired a broker, they will also help you market your business to determine the best buyer.
- Negotiate the deal: The best buyer is onboard. You now have to negotiate a fair deal for yourself. Plan your deal terms, exit strategy, conditions if any, and have a solid contingency plan. For any such deals, you must be ready to make some compromises but in the end, you should get a deal that you think is best for you.
- Close the deal: Transfer the ownership of the business, sign the required contracts and legal documents, financial paperwork, and transition employees and businesses. This is the last step of sales. Once you tick these off, you will have successfully closed the deal.
Follow these steps and you will see the valuation of your business increase. If you are looking for the best business brokers in Florida to work on your deal, you can research online. Be sure to go for someone with industry experience and a proven sales record. They will help you sell your small business easily.
