I want to sell my business, now what?

You’ve decided, “I want to sell my business,” but where do you start? Most small business owners have never sold a business before and have many questions about the sales process.

These are some of the most common questions and answers to help you understand how to sell your business.

Question: How much is my business worth?

Answer: This is the most frequently asked question. The value of a business depends on many factors, including profits, the current economic situation, the market, and much more. Although this is a very simple question, the answer is not simple.

There are many methods that are used to value a business and, depending on the business, there can be many factors that can affect value. The best answer is to use the services of a professional who values ​​companies to decide a fair market price. They will know how to properly value your business.

Question: How long will it take to sell?

Answer: Unlike a home that can sell in the first 30 days, it can often take up to a year or more for businesses to sell. Finding the right buyer takes time, and choosing the wrong buyer can make you wish you didn’t sell the business in the first place. It is worth the time to find the right buyer and sell only when there is a qualified buyer.

Question: Who should I tell that I am considering selling?

Answer: While it may be tempting to tell everyone you want to sell, doing so could make your business unsellable. Some suppliers, competitors, and employees may react badly to your decision and could actually put you out of business.

Confidentiality is essential to sell a business. It is best to only discuss your interest in selling with a qualified trade broker who can trade your business confidentially without notifying everyone you are selling, thus preserving the integrity of your business and your ability to sell.

Question: What is the best way to find a buyer?

Answer: Depending on the business, the best marketing techniques are often through the Internet, direct mail, cold calling, advertisements in industry publications, or a combination. A marketing-savvy business broker can target the ideal buyer and have the phone ringing with buyers in no time.

Question: Should I sell it myself?

Answer: If you have a business with income of less than $ 100,000 per year, you may want to consider selling it yourself. When you find a buyer, if you need help with the process, some trade brokers provide consulting services to guide you through the sale process for a fixed fee.