Everything always has a beginning, middle and an end. This is true when you look at business ownership. Any business owner will inevitably start thinking of selling their business somewhere down the road. The smart business owner will start planning to sell when they’ve bought it through planning their marketing and growth. Regardless of when you start thinking of selling, there are five tips you should know.
Resolve Any Current Business Problems
The last thing any buyer wants is to buy into old problems or litigation pending. This will keep you from finding a qualified buyer to take over ownership.
Make Sure All Records are Updated
This is a vital part of your business anyway, especially with regard to the financial records. Make sure all your licenses, operating certificates, corporate minutes and business records are up to date.
Meet with a VR Business Intermediary
Any VR Business Intermediary from one of 130-plus locations in 10 countries should be the first person you should meet with when thinking about selling a business. They will be able to give you the inside information on current market conditions and valuate your business effectively.
Think about Seller Financing
If you want to obtain the maximum price for your business, you will want to provide some seller financing. Very few buyers will be able to provide all cash at the time of the sale. You will want to be flexible when it comes to the financial terms. Seller financing can go a long way in leading to a successful close.
Planning for after the Business Sale
If you are really serious about selling your business, you need to make sure you know what you are doing after the sale is complete. Are you in agreement with your family members or partners with the decision to sell? It’s important to get ready now, but don’t put your business on the market unless you are prepared to sell.