This is a blog post by Gagan. You can follow him on Twitter.
Are you planning to sell your Existing Business so that you can give more time to your family or you just want to get rid of it because you have found anything else which is much better than this? Whatever the situation you are in selling a business is a complex process but if done wisely and professionally it can help you in earning good profits. In this article we are going to discuss few tips which are very helpful in moment you are going to sell your business.
Business Valuation: – This is the most tricky and important part in the process of selling a business. The worth of the business depends on the factors like the value of other businesses in industry .Each industry has its own methods to calculate their value. Other Common factors which effects the value of business are How old the business is , its reputation in market, number of clients currently with business. You can also hire Professional Business Brokers to do the precise valuation of your business.
Financial Statements: – Collect all your Financial Statements, Accounts, Tax statements which would be required in the process. These documents are the important indicators of your business and most buyers mainly rely on these documents to take a decision. You can get you statements audited by CPA firm which helps in proving the documents trustworthy. But Most of the small business doesn’t need to produce audit statement because of high costs of account firms.
Focus on Business Strengths: – Always Focus on the strengths on your Business and eliminate week areas from the report. For e.g.: – Try to eliminate the assets from inventory which are not profitable else the buyer can discount their values and their would be chances that you will receive less value . Always show your profitable departments to the buyer
First Impression: – The first impression of business on the buyer should be good and it effects the deal a lot. It’s very important that how your business looks to an outsider. A clean and properly organized business places tells buyer that company is well run.
Find Buyers: – Everyone who bid on your business would not be a serious buyer. Try to find out some serious buyers. You can take help of some Businesses sale specialists to find some serious buyers for you.
Sell your Business: – After you have negotiated a profitable deal with your potential buyer then you just have to sign few papers and take the money.
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