Selling a Business Can Be Easy if Done Right
Starting and successfully building a business is both challenging and rewarding. Getting it to the point of selling it can be bittersweet. However, selling a business can either be difficult or easy, it’s up to you.
Most business owners don’t start a business with the thought of selling it in mind. Incorporating good business practices in the beginning will not only help your business be successful, it will make selling your business easier.
Keep tax records current. Investment in a good tax firm in the beginning is wise. It takes the pressure off of you to focus on other business related things.
Keep your Pulse on the Industry
Knowing the right time to sell your business means knowing what’s happening in your industry. Obviously you want to sell before a downturn if you can help it. Ideally, you will do this to keep up with competition so you shouldn’t be too far off the market when it is time to sell the business.
Price Your Business Right
Your accountant can help with pricing your business right. It wouldn’t hurt to research sites that will help you determine what your type of business is selling for. Bizquest.com and bizbuysell.com may be a good place to start your search. Be realistic is your expectations. Remember, potential buyers are looking at the bottom line and not the time and effort you may have put into your company.
A sales agreement is the document required when selling a business. There are several things that should always be included in this document such as names of seller and buyer, asset information, purchase price, compete clause, and closing date to name a few. To ensure that you are covered in the best way it may be a good idea to consult an attorney.
The reasons for selling a business will vary from one business owner to the next. This process is much easier for someone who has kept accurate records because the information is accessible. The process however is a time consuming one. It can take months to shut down completely. Having a checklist can help to ensure you address everything and don’t leave anything unattended.