Selling Tutorial

For Business Sellers

You’re here, and that means you're ready to explore the possibilities of turning your business into a whole new opportunity. Now's the time for getting informed about what it takes to successfully market and sell your venture - no commitment necessary! Get all the information you need by navigating through this section; we can help make sure nothing gets left out in plain sight.

Ready to get the business ball rolling? 

Before you dive in and place your company for sale, there are some key steps which should be taken first. It all starts with collecting data about your venture - think of it as gathering intelligence before making a move! With that done, now is the time to set yourself up for success by taking those initial strides towards selling your business.

Here's a checklist of the items you should get together.

• An accurate Profit & Loss (P&L), Income) Statement for past 3 years
• Provide a balance Sheet
• 3+ years of Tax returns
• Average inventory at your cost
• Monthly Sales / Revenue for past 3 years
• List of fixtures and equipment
• Contracts such as building lease equipment lease
• Any outstanding loans
• List of add backs

What are your typical Buyers?

For those looking to make big changes in their lives and take control of their future, buying a business is the ultimate investment. But be warned - buyers must come equipped with serious commitment if they hope to achieve success. The days where individuals could buy small businesses strictly for monetary return are over; careful consideration needs to be taken when selecting which venture might bring you fulfillment as well as profit!

What are some reasons buyers buy a business:

• Increasing control of job security
• Income potential  
• Having the executive power to make vital decisions
• Left their last job
• Among many others

Possible Scenario:

More and more individuals are making the decision to be their own boss, often due to job loss or discomfort with current employment. While historically buyers have been overwhelmingly male, there's a trend toward female business owners as well. On average these entrepreneurs will invest $100k or less in launching themselves into self-employment; commonly sourced from personal savings supplemented by family members' assistance. Most new small business owners lack prior experience - they're taking on roles that may never before have crossed their minds! Those seeking to break free from the confines of their current job and take control of their destiny often look towards business ownership. It's a big decision, requiring courage, preparation and commitment; but for many it's a dream worth pursuing. Although profit is important, prospective buyers recognize that there are greater benefits which can be gained by taking charge of one’s own success story - making money while finding satisfaction in self-employment.

Prospective buyers come to the table with a powerful combination of motivation and resources, ready to make an informed decision about taking on business ownership. With their wants accounted for as well as realistic expectations of what it will bring them, these individuals represent both opportunity and potential success.

What are buyers wanting?

If you're considering a business sale, it's important to understand which type of buyer is most likely to be interested in your offering. The vast majority are looking for an investment that will generate cash flow, so understanding this beforehand may help inform the decisions you make moving forward.

Tip

The Internet is revolutionizing the way businesses communicate with customers and potential buyers. Having a web presence can give your business an edge, creating positive impressions that could be invaluable in getting contracts or sales to take off down the line. Harnessing its power lets you stay ahead of the competition – so don't miss this opportunity!

Have you anticipated the questions that may arise? It pays to be prepared in advance. Brush up on potential inquiries and arm yourself with thoughtful, informed responses - so when it's your turn to shine, you're ready!

• Why are you selling it if the business is so good?
• How much money does the business make?
• What is the upside potential if I buy it?
• How did you get that price?
• How much does it cost?
• Will the seller a note?
• Does the assets go home with the seller every night?
• Are there trained employees who will stay with the business?
• What is the condition of the lease?
• What is the condition of their franchise agreement? 
• Does the business have vendor issues?
• Do the business have customer issues?
• What will this cost me?

Buyers are looking for CASH FLOW

To ensure a successful sale of your business, it's important to understand what buyers are looking for - namely cash flow. It's essential to collaborate with an accountant or bookkeeper and make sure that all financial statements accurately reflect the income generated by your company. Make sure you take into account any one-time expenses such as new equipment purchases or renovations; these non-cash items can be crucial in determining the final selling price! Keep on top of interest payments and owner contributions too: All elements need careful consideration when advising clients on how much their businesses will fetch at market value.

Things you can do

Crafting an operations manual is the key to unleashing your company's full potential. Make sure you provide clear, concise instructions that seamlessly guide employees through their daily workflow. A well-crafted operations manual can help make any business run like a well-oiled machine!

Important

It's never too late to get an operations manual for your business! A well-curated and up-to-date record of processes, procedures, policies and more can help take things from good - to great. Not only will it prove invaluable in simplifying future tasks & managing day today activity effectively but having one could also be extremely beneficial when selling the company-- impressing potential buyers with how organized you are! Want to be ready for the future of your business? Create a comprehensive manual that covers operations from start to finish. Advertise sales, products, and services in catalogs or publications so potential owners can get an idea of how you run things. Be sure not to divulge any protected information when preparing this documentation!

Not All Buyers
Prospective entrepreneurs should always ensure to do their due diligence when considering a small business purchase. Not all buyers are equipped with the resources and realistic expectations needed for such an investment, so it pays to be sure before taking that step forward.

Ready to take a closer look at your business? By trying to view it from the eyes of potential buyers, you can make sure that when you choose to put it on the market, our marketing efforts will be as successful and efficient as possible.

Here are some ideas that may help!

• Clean up inside and out
• Keep your space functional and efficient by repairing any malfunctioning equipment or, if it's not being used, consider removing it.
• Streamline items to only those items that are included in the sale and, non-functioning pieces can also be removed.
• Keep your inventory up-to-date to ensure that your business has a thriving and professional appearance. Show buyer you are busy - no one likes an empty shelf!
• Keep your business looking vibrant and inviting with regular maintenance. Ensure all signage is up-to-date, replace exterior lights for a warm welcome to customers, and more! Make sure you are making the best impression on passersby.
• Don't let the process of selling your business lead to a lackadaisical attitude; maintain regular work hours and show potential buyers that you're still operating at peak performance!
• Give your office or store a fresh new look and feel - spruce up the inside of your business for maximum impact. Expert design advice helps you create an effective environment sure to wow customers!

What do you think will make it more attractive?

When it comes to selling a business, even the littlest details count. Ensure your records are up-to-date and that everything looks professional – after all, first impressions last! If you'd like more information or have any queries about what we offer please don't hesitate to give us a call - we'll be glad to help.