As a small business leader, your resources are limited. You can’t justify hiring an entire sales team and often make most of your company’s sales – if not all – yourself.
Does this sound like you?
As a company that helps small businesses increase their revenue, we’ve learned a thing or two about the importance of a sales strategy. So we’ve put together a list of 5 steps to selling a small business that really works for small businesses – or any other business that needs more luxury of a multi-faceted sales team.
Steps to selling small business
Tie up any loose ends
It’s common knowledge that if you want to sell your house, you need to get it in order first. You don’t expect potential buyers to be excited about your house if the walls need repainting and the roof is leaking.
The same concept applies when you sell a business. If your contracts are unclear or your balance sheet needs work, the value of your business will decrease.
Here are some ways to make sure your business is ready to sell:
- Hire a reputable accountant to review your financial statements.
- Review your most important employment contracts and make sure those employees have incentives to stay put after the sale.
- Have an intellectual property lawyer review all of your business contracts.
- Make sure your business is set up efficiently so that if you sell, you pay the least amount of taxes possible.
Business valuation
Next, you’ll want to determine the value of your business to make sure you’re not valuing it too high or too low. Find a business appraiser to get an estimate. The appraiser will write up a detailed explanation of the business’s value. The document will provide credibility to the asking price and can serve as a yardstick for your listing price.
Don’t neglect your business during the process
One of the biggest mistakes you can make is to start focusing on the deal and ignore your business. This is a costly mistake because the deal is not done until everyone has signed the paperwork. If your company’s revenue suddenly drops a few months before the sale, buyers may come back to the table and ask for a lower price.
Therefore, a few months before the sale, make sure it is clear who is focused on running the business and who will negotiate the sale.
4. Choose the right business broker
Selling your business is a big decision. You have probably spent years building it up, working tirelessly on its strategy and operations to ensure its profitability. You may have reached a point where you don’t have the right skills to implement an expansion strategy, and a new owner with a better skill set will be able to reach the next stage of business growth and maximize its potential.
Selling your business is an opportunity to get a return on the time, money, and years of risk you’ve invested to finance your dream. That’s why it’s essential to appoint an experienced business broker when sell small businesses, for example, you can choose WebSiteClosers.
Choosing the right business broker plays a critical role in ensuring a smooth transition. For invaluable insights and guidance in this crucial process, explore how to get expert advice from HedgeStone
5. Craft a profitable deal
Structuring deals is a science that combines excellent communication and negotiation skills with industry experience. A well-structured deal is not based on the asking price alone. There are several important aspects that need to be agreed upon, including but not limited to:
- Mandatory down payment from the buyer
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Availability of seller’s financing and the terms of this Agreement
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Structuring of the transaction
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Non-compete agreements, if any
There are several motivations to sell your business, and with buyer demand at an all-time high, there is no better time to maximize the value of your years of hard work.
Where to sell a small business?
Through an online group
Online groups are also a great place to find potential buyers for your business. They allow you to start conversations, post advertisements, give advice, and answer inquiries from those interested.
Your extended network of connections
You can use your extensive network of connections to get the word out that you are looking to sell your business. Your network can include business partners, colleagues, and even employees. Make sure you fine-tune your presentation and clearly communicate the benefits that potential buyers can gain by purchasing your business.
Market your business through social media
You can market your business through social media sites like Facebook, Twitter, and LinkedIn. You can use them to generate interest in your business as they offer valuable resources that can help you throughout the process and attract qualified buyers.
How to sell small business: bottom line
So, if you want to know how to sell a small internet business, you need to carefully prepare it for sale:
- put in order the financial statements in, draw up a business plan, conduct audits;
- properly evaluate the business;
- analyze the target audience;
- to package an offer;
- to find a buyer.
