Tips For Selling A Business That You Built Yourself
You've worked hard to build your own business, but now, the time has come for you to move on and do something different with your life. Rather than just dissolve the business, you should consider selling it. Here are a few tips to ensure you find a good buyer and truly earn what the business is worth.
Make sure your business and personal funds are totally separate.
Many small business owners, in particular, end up co-mingling their own money and the business' money. This can present some minor annoyances when doing your taxes, but it becomes a huge hindrance when you try to sell the business. Anyone buying the business will want to look at the books and get a true sense of what the business is earning, which is tough to do when the earnings are all interwoven with your own personal funds. If you do not already have a separate bank account and separate financial records for your business, separate these things out now — at least a few months before you really plan to sell.
Don't mention anything to clients.
Surely you have some clients you've become close to over the years. Even though you may feel like you should tell them what is going on, it's in your best interest not to. If you say you're thinking of selling the business, they may move on and stop using your services. You'll have a hard time selling a business that has lost customers in the past year.
Hire a broker.
Rather than trying to list the business yourself, hire a broker to sell it. There are a few reasons why this is the best approach. A broker will know how to set a fair price for your business, whereas you, as the owner, may struggle to put an actual monetary value on it. Also, a broker will know who is looking for businesses like yours and can therefore market it successfully.
Know what your next plans will be.
Before you list your business for sale, make sure you know what your next steps in life will be. You never know when the business will sell. Sometimes, it takes days, and other times, it takes months. It's best to have something you can turn to whenever the sale goes through, such as a new job or business endeavor.
Good luck selling your business! When it is time to move on, it is time to move on. For more information, get in touch with companies like Sacramento Business Sales.