Are you about to sell a business online? Before you take the plunge, it’s important to understand the market and your possible profit, as well as take a long look at why you are selling in the first place. Is it a lifestyle sale – are you retiring, tired of your business, or looking for a change? – Or is the sale for financial reasons? If you buy and sell businesses regularly and are a business trader, you’ll know that it’s a tricky affair.
Finding the right buyer for a business that you have put your proverbial blood and sweat into can be a tricky proposition, but ask yourself these four questions before you make the decision and you’ll know whether you’re doing what‘s right for you
1) Is your business ready to be sold?
Selling your business should never be a spur of the moment decision. Take the time to prepare your business for a sale. Make certain that you can produce, upon request, up to two or three years of accurate tax returns to show maximum profitability to get the best price for your business. Preparing for a sale beforehand will go a long way in helping you determine whether or not your business is, in fact, ready to be sold.
2) When is the right time to sell the business?
Many people looking to sell their business only do so when the business is floundering. This is the wrong way to approach selling your business. The adage ’quit while you’re ahead’ applies here. Sell your business when it is at the top of its game. There are some who feel selling when they are making a maximum profit is counterproductive. However, that is thinking like a business owner and not an entrepreneur.
3) What is the value of my business?
Before you sell, it is essential to value your business so you know exactly how much it is worth. This will enable you to set the right price when selling. Assess the value of your assets, estimate future profits you would have been likely to receive and work out how much the goodwill that you have established is worth. Let’s have a quick look at our Business for sale Australia for your own reference.
4) Will my business survive without me in the picture?
If your business is set up around the value that you bring to it or around one customer in particular, this may concern the buyer who may take his offer elsewhere. A good business is that which can operate to its full potential even in the absence of its owner, and in which there is good revenue diversification where no one single customer makes up more than five percent of its sales.
Once you have asked yourself the above questions and evaluated the market, you will be in a better position to sell your business.
You have tick all these questions? Then get ready to List my business!
Biz Trader is here to help you sell your business online!
If you need help selling your business, contact Biz Traders, your local business listing site Australia, for more information visit our website
Author: Andy White
Andy White holds a Masters of Business Management and after a career as an Officer in the Australian Army, worked as a Business Consultant and now operates his own successful Real Estate business on the Queensland coast.