Selling a business is a big decision. Selling a business is not as easy as selling a stereo to your next door neighbour, or making a garage sale. It is actually full of factors to consider and involves a long process of negotiations and paperwork. It can also involve expert help from time to time.
Despite the current decrease of consumer confidence for the month of August, in which Trading Economics reported dropped by 2.3 per cent month-on-month to 103.6, business sellers can still pursue the decision, especially when money is an issue. And if so, here are the things you need to know before selling your business.
Tip #1: Seek Expert Help
Before doing everything in the process and most importantly, if you’re a beginner, always seek expert advice on every aspect of business selling — from brokers to accountants and lawyers. Knowing they’re experts, they can provide the necessary insights in order for you, as a business seller, to be able to get the best leads and deals.
Tip #2: Provide a Realistic Asking Price
Asking for a high price when the business is performing well with its audience can be really tempting, but can be a fatal mistake in the end. The truth is that buyers won’t base the decision on your business’ performance alone. There are many different factors to consider that can make or break a decision. So, in selling the business, make sure to look at the business at every angle; take a look at profit, investments, audience impact and relationships, and more.
Tip #3: Start with the Paperwork
Just mentioned before, selling a business is not as easy selling a preloved sofa or stereo to your neighbour. The real process of selling is involving paperwork and a lot of time and effort for legwork. Even before the sale starts, you will need to start with the paperwork and organise in order to have a smoother negotiation meeting or inquiry.
Tip #4: Separate Personal and Business Expenses
A majority of business owners tend to mix-up both expenses when the need arises. But, when it’s time to list the business, it’s best to leave the business expenses untouched. Potential buyers also take a look at the business current financial standing in terms of revenue, expenses and net profits of your business
Tip #5: Get Expert Assistance
Selling the business, particularly in Melbourne, can be tough with the competition in the area. But reaching out to a helping hand of business brokers in victoria can help provide market visibility for the business you’re selling. Visibility is exposure, which helps the business be seen or found by people looking for what you’re selling. Moreover, a business broker can also assist in different functions, such as asking prices, marketing the business, and being the middleman in contacting potential buyers.