1. Get a Professional Evaluation Done
To get an idea about the right asking price for your business, you will need to get it evaluated. There are many accounting firms that can evaluate your business by using your financial statements and comparing them with available national data and current market conditions. The accounting firm that you choose should have prior experience in evaluating and selling similar-sized firms.
You will also need to ensure that all your accounts are maintained in a proper and legal way. You must be able to produce your tax returns from the last five years. Your previous years’ balance sheet and profit & loss statements will also need to be made available for scrutiny by any potential buyers.
Have all legal records regarding your business ready for review. A proper file with all the relevant records will make it easy for potential buyers to study the details of your business and make an informed decision.
2. Use the Media
In order to get proposals from a wider variety of buyers, it is essential that more people know about your intent to sell your business.
You should advertise in select newspapers or even in related association and trade publications. This might prompt some of your competitors to consider buying your business – and since they are already in the same industry, it would be easy for you to communicate with them on the same wavelength.
You can also use the Internet as an advertising medium; it is cheap and its reach is limitless. You can also post your decision to sell your company on your own Website if you already have one running.
3. Use That Vacuum Cleaner
In order to create a favorable impression to any potential buyer that may drop in for a peek at your business, clean up your workplace.
Spruce up your premises, and apply a fresh coat of paint if necessary. File all your papers in their respective cabinets so that the tables in your office or store do not look cluttered or untidy. Creating a favorable first impression is crucial if you want a good offer.
4. Scrutinize All Potential Buyers
Once you do start getting offers from various buyers, then you will need to read the fine print regarding the terms and conditions that they present.
Any buyer who is not willing to pay the entire amount upfront should be scrutinized thoroughly. A buyer that not only offers you a good price for your business but also shows great potential in taking your business forward should be given preference, if you are mentally attached to your business.
Potential buyers will also ask you the reason for selling your business. Therefore, it is essential that you answer truthfully and tactfully.
