HOW DO I SELL a BUSINESS? HOW DO I SELL a RESTAURANT? HOW DO I SELL a FRANCHISE?
"Sell your business when you want to and not when you have to" SM
That means, if your exit strategy is to sell your small business, franchise or restaurant - then think, plan and learn about selling your business at your convenience and sell it on your terms, sell it when you want to sell and not when you have to sell it or when you are forced to sell it. Most business owners assume that they can just advertise it when they are ready to sell the business and they will find a buyer. On average it takes 4-6 months or more regardless of where you advertise and since many businesses listed for sale are not sold, for a variety of reasons including incorrect pricing and insufficient information provided by sellers, it is always a good idea to think about selling your business when you can.
Most small business owners who want to sell their established business, have the same question - how do I sell my small business? These days, the question is: how do I sell my business ONLINE? The answer depends upon what or how much or how little you know about selling a business, the advertising process and what it takes. Hence, it is important that you spend some time understaing the process. Knowing a few things such as, the value (or asking price) of your business, the advertising process, the amount of time a business will take on average to sell and your involvement in the process are the most important aspects. If you are serious about selling your business or franchise then consider INVESTING (time and money) in the PROCESS and make a comitment to follow through, once you decide to sell.
Learn Some Simple Things, to Sell a Business as Fast as you Can :
Investing in the process and getting invloved: Many sellers, once they list their business or restaurant, do not follow through, do not track or check emails (many list with one email and then don't use that account and forget what they used it for or have spam filters on their email that blocks leads from getting through). The most important thing to remember is that your business doesn't sell (just because you advertise/list it for sale - here or elsewhere) but you must work with the interested buyer in providing them the necessary information so they are convinced that investing in what you are offering is worth their money and time. Firstly, you should know how much your business or franchise is worth or more importantly what is the amount that someone else might pay for your business or restaurant and consider it a fair trade. Secondly, you must provide all the necessary information regarding your business to potential buyers and then advertise it as many places as you can and follow through. On the otherhand, like many small business owners if you are busy and/or don't mind paying a brokerage commission then you must find a professional business broker who can help you in the process. In any case, you must determine whether to sell your business and for what price - if your exit strategy calls for selling the business.
For most small business structures, however, selling a business is a multi-step process that can take from weeks to years depending on the size of the organization and the reasons for exiting. In most cases, the end goal is to maximize the value of the company and convert that value to cash. It is more than just important to know how, when, and how much to sell your business for. There is a big difference between properly preparing your assets to be sold and putting a for sale sign on the front door. Knowing the difference can pay big dividends. Getting professionals to guide you through the process is highly recommended. Depending on the size and field of your business, some of the professionals you may want to consult include: lawyers, accountants, business brokers, auctioneers, tax experts, bankers, and the IRS. Seek referrals from satisfied customers and trusted business associates. Some information in this article is obtained from the US small business administration website.
- Making Sure The Price Is Right - Find out what your business is worth before entertaining any offers - price it high, and you might lose and price it low, you will lose. However, for most people pricing it right can just be
the amount that makes you satisfied with the sale and doesn't mean it has to be the right price based on a valuation (also know that if you use different professionals to value a business, you will get different prices). Statistically, most businesses once they are advertised for sale, never sell for a variety of reasons and most importantly because they are not priced right.
Consider advertising your business in as many places as you can. You never know where your MOST IMPORTANT LEAD (the one that generates/closes the sale) will come from and regardless of where or how many places you advertise, (and to be successful you will need to advertise in several places ie. web sites, publications, etc.,) it is important to remember that selling a business or a franchise can and will take time in some cases and it depends on several variables such as the type of business, price, location, etc. Just like selling anything else - for whatever it is that you are selling, there must be a buyer and selling a business, a restaurant or a franchise is no different. Also, selling a specialty business can take more time than selling a business in some of the most sought after categories such as - retail, restaurant and some service businesses, since more specialized the business is the harder it is to find a buyer who is knowledgeable enough to buy and run that business.
Category: Personal Finance