Selling a business can sometimes be as challenging as starting one. In fact, approximately 60 percent of business owners are reportedly unable to reach a deal. This is a daunting statistic for small business owners who are ready to unload a company.
Sometimes, though, it is possible for such a deal to be massively successful. In some cases, a business can even sell for even more than it is worth. How can business owners make such a sale? Here are a few possible tips for selling a business for more than it’s worth.
Start planning now
Ideally, business owners would incorporate an exit strategy from the very first day that they form their business. That way, if an unfortunate catastrophe forces you to sell, there will be a strategy in place. Even if you do not have an exit plan in place, it is never too late to start making one.
Get all documents in order
Combing through your financial records is going to be tedious, but it is easily one of the most important steps of selling a business. You should include all of your tax returns, balance sheets and profit and loss statements. Leave no stone unturned: Gather any necessary documents and get your books in order well before it is time to initiate the sale.
Know your brand and your value
Two things that make a company appealing to buyers are a strong brand and high value. Before selling, strengthen your company’s brand identity through marketing and good customer service. In addition to understanding your brand, you should also understand what it is that makes your business valuable. Ask yourself what your company has to offer that others do not.
Hire the right advocate
Some business owners are tempted to handle the sales process themselves, mistakenly believing that their business acumen will be adequate. In fact, hiring the right business attorney, broker or adviser is key to selling your business for more than it is worth. Someone who has experience handling business sale agreements can be worth their weight in gold when it comes to brokering a good deal. Look for a local law firm that specializes in corporate and business law and schedule a consultation.