Tips For Preparing Your Small Business For Sale Today

Selling your small business can be tricky and you will need all the help that you can get when you are getting ready for the sale.  Be sure that you cover all of your bases so that you can command a price that gives you what it is worth.  Having the information that you need to market it well is imperative and sometimes this is a difficult aspect that small business owners have trouble with.  That is why they need to hire an expert to help them with the sale of the small business.

A Commercial Real Estate Agent

Using a commercial real estate agent is a good way to make sure that a small business owner covers all the important aspects of putting it up for sale.  The agent will take a commission for doing the work so that the owner of the small business can attend to other important functions when they need to.  Having an agent is a smart way to accomplish the goal because they are trained professionals that can handle all of the details, paperwork, and showing the business. A commercial agent or business broker as they are also known, will also list your business on various businesses for sale websites to get you more exposure.

Physical Aspects Readiness of The Office Or Storefront

The office or storefront needs to be addressed and the owner will want to do everything possible to make sure that repairs are completed and that items are removed that are not selling with the rest of the business.  Carpets should be cleaned, and the walls painted in order to get the place ready for showings.  Time is involved in the process, but it is worth the effort.  The asking price can be higher if an owner takes the time to make the office or store space showable to prospective buyers.

Financial Documents Need To Be In Order

All financial documents need to be in order for a sale to take place.  It is a good idea to go back 2 – 3 years for financial and tax information.  A good listing of the assets needs to be documented so that they are included in the sale if that is what the owner wants to do.  Having all of this information ready to show a prospective is an important element in getting the highest price for the company when it is purchased. 

The Company’s Sales And Revenues

An important selling tool is the ability of the business to make money.  The owner will need to make sure that they show how there will be profits that can be made according to the sales and revenue that they have brought in over the past.  This type of paperwork should be easy to access and understand.  Most business owner sellers have their information logged into a computer database, so it is easy to pull up and print out.  Without this type of information, a buyer will not have a clear idea of what they are getting into and may pass up the sale for something else.  It is mandatory that the seller sit down and take the time to get this information ready and available to show. 

Be Able To Communicate Well With A Prospective Buyer

Even if a business owner is using an agent, they will want to be versed in what they want to say to a buyer.  They should know the points that they want to cover and be able to sell their business in a positive light.  Since they may need to practice this to get used to talking to others about their company, they should utilize their agent or a friend as a sounding board.  The seller should take all of their suggestions and input to improve on their ability to get their points across to the buyer so that they can sell their business in a short period of time.

Utilize Time In An Efficient Way

When selling a business, time is of the essence and everything revolves around the quick change of hands.  Time management is a key aspect of the selling process so using any and all help will free up time for the business owner.  They can enlist the help of friends, family, neighbors, and business colleagues in handling the physical aspects of the business.  If they need to hire an accountant to handle bookwork, it is a good idea.  Accessing the help that is available to them will allow them to save time with the sale of their business.     

Selling a small business will take preparation and hard work to solidify a sale.  Most small business owners use the expertise of a commercial real estate agent to be able to streamline the process and save time in the long run.  The owner of the small business is interested in creating interest and eventually a buyer for the sale of their company and they should do everything in their power to make sure that it goes as smoothly as possible.

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