Sell My Business Tennessee | Seiler Tucker

HOW TO SELL A BUSINESS IN TENNESSEE: TIPS, STEPS, AND MISTAKES TO AVOID

Selling a business takes time, patience, and practice—that’s why it’s best to leave it to the pros. Learn everything you need to know about selling your business here.

Tennessee has a complex economy. Any business owner that sets up shop in the state hopes for the best but knows the rocky terrain that’s not just in the Great Smoky Mountains but all over the business world. Fortunately, it’s getting better in many ways and the Internet is helping change the way that people do business in this state and around the world.

Whether you’re looking to sell because you feel like it’s time to get out and move onto the next thing, or if you’re just in a position where you don’t have a choice, you still need to take the time to do it right to make sure that you get the profits and painless sale that you deserve.

How, though, can you do that? These days, selling a business for a good profit seems like an impossible dream. However, when you have the right tools and resources, even in the most uncertain economy, you can sell your business and get the outcome that you want (provided, of course, that you’re being realistic).

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WHAT'S THE FIRST STEP TO SELL MY BUSINESS IN TENNESSEE?

If you are going to sell your business, the first thing on your agenda needs to be proper planning. Take the time to read up on the steps of a proper business sale in this article and get all the information in order first. Take notes, get the right assistance, and make sure that you take advantage of the resources that are available online. This guide can be your first educational resource to get you started on the journey of selling a business.

When you have the knowledge, it will be much easier for you to get the outcome that you deserve from selling your business for good. We’ll help you understand the steps involved in selling a business, what things you want to avoid, and even why you shouldn’t go it alone. First, let’s look at the most common mistakes, so you can cross those off from the start.

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BUSINESS SELLING MISTAKES

Although there are many potential issues that could arise as you try to navigate selling your business, there are some that are more common than others. Before you start making your own plan and figuring out whom to hire, removing the bad habits and “don’ts” will ensure that you are on the right track from the beginning.

Timing is a big factor in selling a business. Some people just decide to list their business and then get discouraged when it sits too long. If you didn’t consider the state of the market first, however, your timing could be off. It could also be that your pricing isn’t reflective of the current market, or any other timing issue. It’s important to work with a broker who can help you determine the best time to sell. You can’t just throw your business up for sale on a whim, or at least not if you want the best outcome.

Limited marketing needs to stop. Too often, people stick to traditional advertising methods because they assume that’s where they’ll find legitimate buyers. However, there are a lot more digital sources of visibility and publicity that you can use to get your brand out there. Take an omnichannel marketing approach to ensure that you reach all potential buyers in a way that works for them.

Sellers shouldn’t stay on. Although it might be requested, or even preferred by you, staying on to help the new buyers should only be done in absolutely necessary situations. And even then, you should only do it as long as it’s required. Sellers can stay on to assist with the transition briefly, but it should be brief and have a clearly determined timeline ahead of time so that everyone is on the same page.

Where are you priced? One of the biggest factors in whether or not your business will sell (and how quickly) is the pricing. Have you taken the time to price your business accordingly, based on the values that you have found or the factors that are involved in pricing that impact how much you need or deserve to earn for your business sale? Typically, you’ll be pricing yourself at 3-4 times your profit and assets, but that could vary depending on your needs, debt, and other factors.

Are you using the right people to help you? Selling your business is about taking advantage of the resources that you have and people are one of those resources. If you’re not taking advantage of them, it’s going to be critical that you start now. Hire a broker to help you through the sale process and make sure that you have an accountant or financial consultant to deal with the money, too.

Selling blindly is dangerous. While it might seem enticing to just let someone make an offer and take the business, you’re not just selling some building that you used to own. You’re selling your very own business idea and that can be difficult. However, it’s necessary. Make sure that you know who you are selling to and working with so that you can create that professional image.

THE STEPS TO SUCCESS

Now that we’ve covered the biggest mistakes in selling your business, let’s look at what it takes to get the best deal and get through the process without stress or struggle. It’s going to be a bit different for everyone, but each of these elements should be in your strategy somewhere.

Step One: Determine Your Value

You have to know what your business is worth, as well as what it’s worth selling it for. You can do that using online calculators, or by adding up your own assets and multiplying them to see how much the business is worth. You can use calculators online to get a rough estimate, but you’ll want to work with a pro to ensure that you get an exact and accurate price for listing to garner the best deal.

Step Two: Organize Your Financials and Paperwork

Speaking of your assets, you’ll also want to take some time to get things organized and prepare for the upcoming sale. Generate a current profit and loss statement that you can give to prospective buyers. Take the time to go through all the paperwork and get rid of what you don’t need. Use what’s left to help you create your executive summary and other tools that can paint your business in a better light and help you get everything that you need.

Step Three: Hire Your Broker

Some people get stuck at this point because they forget they need to hire someone to help them along the way. However, if you don’t already have their services, you really need to find a broker and some financial assistance to help you through the deal. They do these transactions all day and understand the details and intricacies that come with them. They also know the guidelines and laws surrounding selling a business in Tennessee, giving you further peace of mind.

Step Four: Market Your Business

After the broker has gone through all the details with you over the sale process and what you can expect, you’ll be able to take the valuation of your business, create a sale price, and then market your business for the best deal. Be sure to think about alternatives like social media, where you may attract a different kind of buyer or at least give people more options as to how to contact you.

Step Five: Close the Deal

Once you’ve found a buyer, you can negotiate until you arrive at an agreed-upon price and then close the deal. This process can be quick and efficient if everything is in place. However, it can take some time for processing and other details if you don’t have the strategy and plans ahead of time. The close can be a stressful period, but if you’ve done everything up to this point properly, it won’t have to be.

Throughout this process, you will want to consider whether your broker will be dealing with the buyers or if you want to try to negotiate on your own. Chances are that once you have them, you’ll appreciate anything the brokers can do.

FAQs FOR THOSE SELLING A BUSINESS

Why do I need a broker to sell my business?

Selling a business without a broker is like selling a home without a real estate agent, but with a lot more headaches. You could attempt it on your own, but you’re likely to get frustrated or taken advantage of by someone looking for a good deal. Although it can be done, it isn’t recommended to sell a business without some type of professional input or review.

The bonus here is that a broker can take care of almost everything that you need. You’ll be able to hand control over to them and go back to worrying about other aspects of your business.

Is there a standardized formula for business valuation to help with pricing for a sale?

There are a few different options for how to value your business and each one is a lot of math. Usually, though, it’s a multiple of your profits and assets, multiplied, to account for other elements. Some valuation formulas work better for certain industries or types of businesses. This is where having a broker will help you figure out the best price so that you can go to market and get the best deal without having to sit there and wait.

How long will it take to sell my business?

When you’re selling a business, there’s no real timeline that you can expect. Every transaction and deal is different. You have to take the time to go through the process the right way. The good news is that if you plan you can save a lot of time on your actual deal, which can be great for those who need to sell sooner than later. Typically, businesses can expect to sell in about 4-7 months, with some selling sooner and others taking a bit longer.

How do I value my business?

The value of any business is typically going to be an exponential factor of the profit and assets. A small business might be valued at 2.5 times its profit/asset amount, while a larger company could have a value that’s as much as 6 or 8 times that. It all depends on the circumstances of the business, financial and otherwise. Use online calculators to assist you in understanding this, but work with a valuation expert to get an actual value to list your business for sale.

What about selling my own business?

Some people think that they can sell their own business and still get the outcome and desired results that they have in mind because it doesn’t seem like a complex process. However, it can be tricky to manage everything, which is why it’s always recommended that you enlist the help of people who have the experience and knowledge that you may not have found yet. Those who sell their own businesses see much lower profits than those who work with a broker.

NOW ITS YOUR TURN

You’ve got the facts and then some, and now you know exactly what’s out there in terms of selling your Tennessee business. Find the resources that you need, including the dedicated assistance of the team at Seiler Tucker, and make sure your business sale goes off without a hitch. We’ve been helping businesses sell for years, and we know what it takes to get the job done. When you are ready to sell, we’re ready to help.

It’s not easy to start a business these days, but it can be even harder when it comes time to sell. When you have the right tools and resources, you will be able to get a better outcome and a smoother transaction for everyone involved. The team at Seiler Tucker can help with everything from listing and marketing to research, pricing, and even helping you understand the entire process from start to finish.

If you’re ready to get started on selling your business for the best price, contact our team today. We’ve got a 98% closing rate that says we can help you get the best sale for your business, no matter what industry you’re in. Schedule your consultation today to see what we can do for you.

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Michelle Seiler Tucker is well known as one of the premier authorities in the field of buying, fixing, and selling businesses. Her insights and opinions have been well recorded all over the news in various formats. Read below to learn more about Michelle and her success as a leader in the online business broker field.

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