When a person owns a business, it’s easy to think that he or she will keep running it for their life. While possible, over time, plenty of entrepreneurs want to unload their company. Since it is a life-changing event, one needs to think about their goals and how they can accomplish them without committing serious errors. With this in mind, here are four steps to take when selling a business.
Decide slowly and think about it for a while: It’s easy to experience a few poor days or weeks and then give up. However, to avoid an unwise decision, one needs to ponder the decision and think about their future. While it is easy to experience short-term fits of frustration when dealing with multiple bills like credit card processing and merchant account fees, it is wise to think deeply about the situation.
Sit down with a professional: While a successful entrepreneur will receive unsolicited offers for his or her business, it is beneficial for one to come up with a fair price. To do so, one needs to look at their profits and losses for the year. Remember, when adding up the costs, a person needs to include expenses like merchant account and credit card processing fees. While a pain, it will help a person find the ideal price for their firm.
Talk to current employees: If a person wants to sell their business and he or she employs people, it is wise to talk to them about the issue. Not only can an entrepreneur offer his or her workers a heads up, but they can find a potential buyer. Think about it, when working at a company for a long time, a staff member will possess the knowledge, skills and expertise to run the day-to-day operations of it.
Use a professional to list it for sale: If an employee can’t afford the business or doesn’t want to buy it, the owner needs to put it up for sale. When listing it, a smart entrepreneur should work with a qualified seller as it is easier to obtain top-dollar when using a professional. Then, when approached with a reasonable, offer a seller can head to the table and hash out a deal.
It’s not easy to sell a business. With these four tips, one can sell their business for top-dollar.