Are you tired of running an unsuccessful business or want to try something new? Well, you can sell your business and venture into other things that interest you. However, selling a business can take years, and this mainly depends on its nature. If you wish to expedite the process, this is also possible, only if you understand how to do this.
Checkout steps for selling your business fast:
Have the documents ready
You require important documents to sell your business and should have them ready. Prepare your financial statements for the previous three years.
These may include;
- Tax returns
- Balance sheet
- Profit and loss statement
- Copy of lease
If not sure how to go about this, seek advice from Nash Advisory and hire an accountant to guide you. Moreover, keep track of the profit trends of your business. A drastic reduction in profits will drive away customers and affect the value of your business.
Price you business
Pricing is the most critical part of selling a business. To price your business, rightly, you require information on the current marketplace and the buyers. Have an in-depth understanding of your business. To determine the most suitable price, hire a business broker or a valuation specialist. The professional will also need the documents mentioned above to make accurate estimates.
Prepare a confidential memorandum.
A confidential memorandum is a summary of your business. It responds to the essential questions from potential buyers, and many use it to evaluate your business. You can share it with pre-qualified buyers after signing the confidentiality agreement.
With this document, you save a lot of time with unqualified buyers while answering questions about your business. It’s also handy for big enterprises with lots of detailed information and helps sell your small business faster.
Choose a business broker& Market confidentially.
Create a strategic marketing plan to draw the right buyers. Use the internet, direct marketing, adverts, and other methods that will help you locate potential clients. Remember, you can reach millions of buyers online, so optimize various online platforms to make a fast sale.
That’s not all, though! Choose a broker wisely. Some will market your business in more sites and are preferable. The experience of the chosen broker is also paramount. Engage one who understands online marketing methods for excellent results. If you decide to do this alone, you’ll spend more time and resources and with no surety of a sale.
Finding buyers is easy but screening the right one takes a lot of time. Take all buyers through a detailed screening process to ascertain if they qualify to buy the business. Do a thorough background check for any criminal records, and the broker will come in handy during the process. Avoid selling to the wrong buyers; this can result in financial and legal consequences in the future.
Price negotiations & Closing the deal
Once you locate the best buyer, negotiate the price, down payment, the time the seller stays with the business, commission payment, and more. A business broker understands the prevailing market trends and will structure the deal to benefit both you and the buyer. Lastly, sign all the necessary paperwork and close the deal.
Selling a business involves various processes and paperwork. You can end up making some mistakes, hence the need to engage the right experts. Using a professional saves a lot of me, ensures that you get better deals and sell your business faster.