It is challenging enough to sell a business for fair value. Selling a business as quickly as possible is even more difficult. However, if you have the will, there is a way.
Without further adieu, here are four tips that will help you sell your business in a timely manner.
1. Go Over the Numbers With a Fine-tooth Comb
The “books” are of the utmost importance in the context of a business sale, especially if you want to sell the business without delay.
Accounting records are a scoreboard of sorts for your business. These records indicate the actual value of your business to prospective buyers. Your accounting records should be accurate, updated and in full compliance with accounting standards.
Provide prospective buyers with updated and accurate accounting data and they really will be that much more interested in making an offer on your business.
2. Rely on a Business Broker for Assistance
A savvy business broker will help guide you through the sales process, ensuring you sell your business as quickly as possible.
However, no two business brokers have the same track record of success, insight or work ethic. Look for an experienced and qualified business broker. This professional should help you gauge the business’s current valuation and also explain the factors used to obtain the valuation.
In fact, business brokers can even assist in the development of a marketing plan. Brokers can also come up with written materials that promote your company and pinpoint prospective buyers who understand the true value of your business.
3. Document Essential Business Operations
Oftentimes, the most enticing aspect of business up for sale is how efficiently the company operates on a daily basis. Key business operations must be documented in order to whet the appetite of a potential buyer.
There should be a detailed procedures manual that documents the routine tasks performed, the individuals completing those tasks and the frequency at which they must be completed.
An organizational chart will also help the buyer get a true understanding of how the business is managed. If certain aspects of your business are automated, those processes should be documented in-depth.
This way, if something goes wrong, there will be a guide that helps solve the problem and keeps the business humming along.
4. Develop a Plan That Targets Prospective Buyers
Each unique buyer has his or her own nuanced reasons for making a bid on a company up for sale. Your business broker will help you identify prospects as well as the common motivations for bidding on a business.
Create a plan to target such buyers and tailor your sales pitch to their underlying motivations. Such a plan will dramatically increase the odds that at least one prospect will make an offer in a timely manner.
Be Forthright About Your Business and It Will Sell Quickly
Above all, it is important that you are honest with prospective bidders. Tell the truth about your business and you will reduce the likelihood of delays prior to the finalization of the sale.
Be as informative and truthful as possible throughout the sales process and you will sell your business sooner rather than later.