Have you come to the realization that now is the appropriate time to sell your online business? Congratulations, as this is an important step forward and one that you will likely reflect back on in your later years.
Now that you’ve made the choice to go ahead and add the sale of your business online, you need the help of experienced business brokers like those at Website Closers, there’s a lot of work ahead of you and you can’t afford to cut corners or make mistakes that could ultimately end up impacting your ability to get maximum profit from selling your company. Here are some tips about how to avoid some of the most common mistakes.
Ask for as Much of Your Purchase Price as You Can at the Time of Closing
Although you’ll certainly open yourself up to more buyers by considering different payment plan options, getting as much sale as possible at the time of the closing is also to your advantage.
A buyer may not run the business as well as you did, and they could have difficulty making the payments that are extended over too long a period of time. Talk to your online business broker about how to get as much at the price at closing as possible.
Always Consider Non-Compete Provisions
In the event that you have a provision that doesn’t allow the buyer to compete with you outlined in your business sale contract, make sure you think carefully about ideas for business that you might want to take on after you sell this business.
You can use a safe harbor provision to allow for an exemption for similar businesses that you intend to do and for businesses that you may like to make an investment into in the future. Make sure that you include specifics as it relates to the non-compete, such as the timeframe from which you are not allowing the other person to operate a similar business as well as geographic terms.
Don’t Forget to Make the Buyer Accountable
There are many different moving parts and facets to selling your online business but if you don’t intend to hold the buyer personally accountable, this could end up being a problem for you in the future.
When a buyer puts his or her signature on the agreement to purchase your online business, you’ll want to ensure that they are signing it on their behalf individually as well as their company.
This is because if they sign on company’s behalf alone, and that company dissolves in the future, there’s no way for you to hold them accountable personally for money that they may still owe to you due to the sale of the business.
If the legal entity, such as their company, is dissolved and they have signed individually, they are still accountable personally. This gives you assurance that the agreement is carried out and fulfilled independently of their company’s fate.
One thing you need when making the sale are experienced professionals on your side from beginning to end. The support of the right business brokers, attorneys and tax professionals can be instrumental in giving you the clarity about selling such a business and the buyer you have selected to work with.