- Manage your accounts
The financials of your business must be up-to-date and accurate. Discrepancies, if there are any, must be settled and all tax requirements must already be met and paid. A business seen with a potential in terms of its sales trend makes it more attractive to buyers. And this will be evident through the reports and records that you should readily present to the potential buyers.
- Don’t do the selling transaction alone.
It is advisable to still seek the assistance of professionals who have in-depth knowledge in this field. Ask the help of an accountant, a lawyer, and a broker when it comes to the preparation of your documents and value appraisal of the business. For example, you own a business that is located in Vancouver, which you plan to put on sale, it is recommended to hire professionals who are also based in the Vancouver since they have thorough knowledge about the location and have wide network in the said area.
- Resolve issues first
Don’t let the buyers see the unsettled issues of the business when they carry out due diligence. Make sure that they are settled even before putting the business on sale.
- Get the valuation of the business
Hire an expert that will do the valuation of the business for you. You can also do your own research so you can have a better basis for the value but buyers prefer businesses that were appraised by an expert.
- Keep it confidential
You might want to avoid any aggression or negative reactions from the people you work with for the business. So make sure that you still do the selling transaction discreetly. Employees, customers, and suppliers do not need to know about the sale.
- Know when is the right time to sell
Make sure that the business is performing well when you decide to put it on sale. You must also consider the economic conditions in order to expect higher returns from the transaction.
- Have a realistic approach
Business might be overvalued when the time was spent by the seller mostly for the build-up of the business. Make your price expectations realistic.
- Have a buyer’s perspective
Be honest and disclose the data that are needed to the buyer. Stop spending too much time with people who appear to be interested but do not have enough resources to meet the asking price.
There are three things that buyers usually look into. First is the management. You must communicate with the buyer your plans for the existing staff so as to also manage the expectations of the employees.
Next, the buyers will also look into the business’ customer base and the relationship with the suppliers. If you have a healthy connection with your customers and suppliers, the buyers will have an impression that the business is running smoothly.
Lastly, buyers will also look into the value. Remember that a business will mostly be valued at the price that the buyer is willing to pay. If you look at the business with the buyer’s perspective, it will be easier for you to identify the areas that need attention.
- Don’t sell out of desperation
Do not put your business on sale because of the dire need for extra cash. Put careful considerations before having your business on sale. According to a South African entrepreneur, Perine Pretorius, “You should never sell a business when you are desperate for money; if you do you are bound to make mistakes.” Thorough planning and patient approach are needed in order to close the sale.
You may want to visit the website Business for Sale Vancouver to read more articles regarding buying and selling of existing businesses.