Every transaction is a little different. What you want and expect from the process may not be what happens, so be sure to have an open mind and be prepared for what may come your way. When you choose to work with a broker and other professionals, they can often help you through several steps of the process, which is why our first step is going to be taking advantage of the help available.
Step 1: Find Your Resources (Including People)
Accountants, brokers, and other professionals that can help you through the sale of your business are absolute resources, and they’re some of the most valuable ones that you can use in this process. Find the people who can take the stress off your plate and help you process your business sale quicker, easier, and with less hassle.
Regardless of which people you choose, there are plenty available to help you. Selling a business is a big undertaking, and you’ll want to make sure that you can build up your business and prepare for the sale that you deserve, not just a “quick sale”. Choose people to represent you who are aligned with your goals and business ideas so that you get the best outcome possible.
Step 2: Value Your Business and Get Financials in Order
The value or worth of your business is not the same as your profit margin. This is a number that will have to be calculated, and that is usually an exponential of the profit that your business makes. Smaller businesses will see a value that’s usually 2-3 times their profit, while larger corporations could easily be valued at as much as 6 or 8 times their profit margin.
Working with a professional business broker, accountant, or financial professional will ensure that you get an accurate valuation of your business. They can also help you get your financials in order. You have to provide a current profit and loss statement for buyers, along with other important insights and analytics related to your business. This is proof that your business is worth buying, and if you can’t provide it, buyers will walk. If you’re trying to value your business on your own, you can find online calculators to help you get a rough estimate, but the input of an expert will be best.
Step 3: Create Your Executive Summary
In addition to telling people the numbers, you have to paint the picture. An executive summary will allow you to tell everyone exactly what your business offers, including the financial details, as well as the other insights. You can even add in some FAQs or a section to help people make a more informed decision, which will bolster your reputation in addition to your odds of a good sale.
You’re selling your business. Be honest, but make sure you make it sound good. Otherwise, people are going to find another business that does. Again, the experts can help you figure out what to say here and how to best present the information to buyers for the best outcome.
Step 4: Market the Sale
After you’ve got everything ready to go, you’ll be able to put your business on the market. You must ensure that you’re priced for the right market and industry, as well as the region that you’re in. What you can get for your business in Texas would be quite different from what you would expect even next door in Oklahoma. Your broker will be able to assist with this, of course, and help you find the best avenues for marketing your business to the right people and in the right places.
You should list in as many places as you can and take advantage of unconventional means like social media and even things like push notifications from real estate websites or your own marketing campaigns– there are a lot of creative ways to reach buyers today, and you have to put them all to work. Omnichannel marketing (marketing on all channels simultaneously) not only provides better coverage, but it provides a more professional image of the entire business and the sale.