Selling Your Business with a Profit
If you have been closely following business-related news, you will find that selling businesses is actually a very common trend in the business world. Even popular companies like the world famous Versace brand has been sold off entirely to Michael Kors. Selling your business does not necessarily mean that it has not been doing good in the market. In fact, it may actually be doing really well and your company already requires a new type of leadership.
Statistics have shown that there 4.5 million business owners in America that are looking for a buyer. If you are one of them, then you better get ahead of the game. You have to be prepared – read articles such what sellers need to know when selling their businesses, look into what buyers look for in small businesses, and research about other information that will allow you to make a profit out of your business. If you want to sell your business with a profit, then you have to make your business the real deal.
It may sound easy, but the nitty-gritty of selling a business entails a lot of work. Like selling a house or a car, you have to ensure that your business is not only clean and sustainable, but it has all the proper documents and papers. Just take selling a business on a much more complicated level. Sounds scary? Well, you shouldn’t be. Here, we will be here to guide you in maximizing your profits by selling your business.
Be prepared. No buyer will buy a business that is on the brink of collapsing, has no legal documentations, and has a lot of debts. Make your business attractive by preparing everything that a buyer may potentially require. This means that you have to get your financial statements in order, settle your taxes, create a transition team, decide on the type of transfer of ownership, do your due diligence, start to detach yourself from your business, and determine your business’ value.
By being prepared, you are ensuring the buyer that your business has been running on a stable ground and that it has not been involved in any shade practices or persons. This will attract more sellers.
Be strategic. In February 2014, it shocked the world when Facebook bought WhatsApp for $19 billion. For an application that is not that popular and has made only a little money in the US, Facebook’s CEO, Mark Zuckerburg, decided to buy WhatsApp because of its potential to outgrow Facebook. But really, it was Facebook’s purchase of Onavo for $100 million that allowed them to monitor future threats such as WhatsApp. Onavo was a vital tool for Facebook in surveying the market for future competitions. And their move to buy WhatsApp was the result.
Sure, selling your business may just be another story in the millions of acquisition stories in the business world. But, selling your business to the right buyers may just be the right move for you. It is important that you know what your business can offer; but it is highly strategic when you know what companies can benefit from what your business can offer. Be an asset and make your business do something that other can’t do for a certain company. It may either be to help companies control their supply chain, give their employees benefits, make their products look more enticing, or allow them to thread on new horizons and geographical markets.
Be pro-active. According to Forbes, a necessary step of selling businesses is that you know how to spiff-up your brand. Every buyer will look into further details about the potential business that he/she is intending to buy. They might go to social media, google, or talk to other business buyers and sellers in order to know more about your business. This is the reason why you have to package your business nicely and effectively. You have to keep in mind that you are not the only source of information about your business; sellers will not only go to you for the information that they need, they might snoop around, ask your employees, and even hire an investigator to get more details.
You can do this by of course, being nice in the first place. In setting up your business, don’t go around making enemies here and then as you start laying down the foundation of your business. Risks and sacrifices will always be part of starting-up a company, but that doesn’t mean that you have to be mean about it. Learn how to cooperate and collaborate well with your employees – this will also give them motivation and interest in what they do. Know how how to control your brand – use social media to give your brand credible reviews. Get on well with others and you’ll see the wonders of kindness and integrity to your business.
Increase the value of your business by using The Value Builder System, which shows 8 key drivers of value (Financial Performance, Growth Potential, Switzerland Structure, Valuation Teeter Totter, Annuity-based Revenue, Competitor Differentiation, Customer Satisfaction and Business Performance with an Absent Owner). It only takes 13 minutes to generate your Value Builder Score.
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Brett Pittsenbargar is a savvy business investor and turnaround strategist dedicated to assisting business owners reach their objective at every growth phase, listen to an interview between Eric Dye and Brett Pittsenbargar. With a background in business development and investment experience, Pittsenbargar understands that business is much more than written contracts, it is about the people working every day in the business who matter. View more articles at https://medium.com/@brettpittsenbargar
Disclaimer: This article is intended to give you general business information, not to provide specific legal or financial advice. Be sure to consult your attorney, accountant, and financial professionals for any specific questions relating to your business.