Selling a business is no easy decision to make, in part because of the careful planning and execution that it requires from start to finish. Seasoned entrepreneurs and small business owners alike are likely to have their hands full with this complex and time-consuming process once they set the gears into motion, which might be discouraging for some: especially if you aren’t entirely sure where to begin, what traits a buyer might be looking for in their ideal purchase, or whether your small business might catch the eye of someone who might do it proper justice.
However, if you’re interested in selling off your business, then don’t despair! There is an array of different strategies you can take to make the sales process smoother without compromising on the value you receive. This process starts with understanding the urgency of selling your business in a short timeframe, while still balancing the work needed to receive fair value for your hard work and investment.
We’ve put together this comprehensive guide to walk you through some of the steps you’ll need to take to have your business selling quickly on the market, while still maximizing its worth to get the profits that you deserve.
Before you start the journey of selling your business, one of the first steps you need to take is getting a clear understanding of its value. There are many efficient valuation methods you can look to if you want to know your brand’s worth ASAP, such as the Market Approach, Income Approach, and Asset-Based Approach. By using various business valuation tools online or collaborating with a professional appraiser, you can get valuable insights into how to competitively price your business in little time at all.
The Market Approach is a method that, as the name would imply, consists of taking a close look at the market in which the company is based. This is done by comparing the company to similar businesses that have recently been sold and then analyzing the selling prices of these businesses. By doing this, it’s possible to get a good idea of the relative worth of the company you’re trying to value. This method is particularly useful when you’re dealing with well-established markets and industries that have readily available transaction data. Resources like Statista are worth looking at for this method.
The Income Approach relies on estimating value by assessing the company’s potential. More specifically, by assessing their overall potential towards generating future income. This involves examining historical earnings, forecasting future cash flows, and applying appropriate discount rates as needed. This provides a thorough look into what the future of the company might be like, which is particularly useful for service-based industries.
Finally, the Asset-Based Approach examines just that: the assets of the business. This is done by considering the value of their assets after subtracting liabilities to achieve their net asset value or NAV. This approach is a great choice if you’re working in an industry where asset value makes up a significant portion of the overall worth.
If you’re looking to get an appraisal done fast, at Website Closers, we offer our very own business valuation services. Our team of qualified business brokers has experience with thousands of clients in achieving a company’s highest possible Enterprise Value and can help you choose the valuation method that’s best for you and your brand.
As you get ready to put your company up to market, you might have this very question, among others, bouncing around in your head leading up to the valuations. “What can I do to sell my business fast?” “How can I make my brand more appealing to potential buyers?” “Is there anything I could be forgetting?” The simplest answer to these questions is to streamline your business operations and polish everything about it to a gleaming shine.
It’s a good idea, for instance, to tidy up your inventory and stock to make sure everything is as it should be. Update your SKU listings on your website if anything is off or incorrect in any way, and ensure there are no problems with your warehouse (or warehouses) if you happen to have any. You should also check for any errors on your online storefronts, and possibly update them if you haven’t done so already. This move improves your SEO capabilities, attracts more organic traffic, and makes your websites much more appealing at a passing glance. After all, first impressions matter, and having a visually appealing and professional presentation can be vital to drawing attention from buyers. There are many tools out there that you can consult if you’re interested in boosting your website with market keywords, such as Google Analytics.
You should also consider streamlining your brand’s operations, as for many buyers, efficiency is an attractive trait in a potential purchase. Some of the ways that you can polish up your brand’s efficiency include identifying areas where streamlining can take place, documenting processes, eliminating redundancies, and ensuring that your business can continue running smoothly even when they’re handed over to new ownership. A well-organized operation can make potential buyers feel more confident about the idea of purchasing your brand, and make the sales process go faster by minimizing some of the bumps that happen throughout the transition.
Congratulations, you’ve found a buyer interested in your business, and is just as eager to get their hands on it as you are to sell it off! While you might be tempted to kick your feet up and relax now, there’s still a lot of work that needs to be done to make sure that the sale goes through as quickly as possible.
Finding a buyer can be incredibly exciting, but you should also be careful to keep yourself and your business safe. It’s important that you try to filter potential buyers by evaluating their intent and financial capability, which can make all the difference between finding a serious, speed-driven buyer and one lacking in those departments. If you really want to be cautious, you could request proof of funds or financing pre-approval to see whether they’re genuinely interested and ready to make a move.
You should also try to have your own documents in apple-pie order before you bring them to the table. You’re not the only one trying to be careful throughout the deal, after all: the buyer is likely going to be interested in looking over your financials, operations, and legal aspects. Try to have comprehensive responses to possible questions prepared in advance, as being able to address potential concerns, along with having organized and transparent documentation, can prevent delays and build buyer confidence. Keep in mind throughout the sale that a successful transition is not just about the purchase being made; it’s about setting the new owner up for success.
Something you may want to consider doing to make this step easier for yourself is engaging with a business broker, as a qualified broker can make not just this stage go faster, but the rest of the process as well. They also offer many other benefits to help you, such as often having a network of potential buyers to market your brand to, the ability to pre-qualify buyers, and, of course, the experience and expertise to effectively market your business.
Getting your business sold off within a short timeframe can be a challenge at times, but it can be well worth the effort. It can be a quick way of getting funds for your personal life or other business ventures, giving you the time to pursue any new brand ideas floating around in your skull, and generally offering you the opportunity, freedom, and flexibility to progress into a new chapter of your life.
By employing efficient valuation methods, improving the aesthetics of your brand, targeting qualified buyers, and navigating the sales process with precision, you can race your way to a successful sale and toward greener pastures.
Additionally, as mentioned before, collaboration with professionals, such as business brokers and appraisers, can be invaluable in ensuring swift sales. If you’re in need of a broker to guide you through all these steps and more, then luckily for you, we at Website Closers have you covered. We have a qualified team of brokers that are happy to help you sell your business, and have the experience and resources needed to make sure that your deal goes smoothly. If this idea interests you, then feel free to contact us today for more information.