A Complete Guide to Selling your Small Business
The capital of Victoria is a thriving city with a booming but competitive business scene. Due to neck-to-neck competition and fluctuating customer’s demands, it becomes difficult for small business to survive longer in the market. According to some reports, Melbourne is home to more than half a million budding small entrepreneurs- thanks to available resources, financial support and geographical benefits. Of course, it is easy to kick start a business from scratch but sustaining it in the competitive market is a challenge.
Thus, majority of small businesses fail and sell their business in the first five years of commencement. However, many sell their business due to other reasons, such as retirement, house relocation, etc.
Whether the reason is, selling a business requires proper planning and research. To help attract potential buyers and get the right price, we are sharing the following hacks.
Here is a step-by-step guide to selling your business:
Determine the Reason For Selling
It is important to decide why you are selling your business. This will give you clear picture and help you accelerate the process with a desired objective in mind. Below are some of the most common reasons for selling:
- If a small business owner is taking a volunteer retirement.
- If you have reached a maturing point and want to exit
- Health challenges
- Death
- Financial requirement
Prepare an Exit Strategy Ahead
Planning is one of the most crucial aspects when you decide to sell your small business. One of the best ways is to creating your exit strategy at least 1-2 years ahead of the sale,
Start with baby steps and strengthen your business to get the right value for it. Most entrepreneurs who wish to sell start by improving their production and sales. The main focus is to improving their overall financial records and setting a strong business structure that increases the value of your company.
Conduct a Business Valuation
There is no denying that business owners are emotionally connected to their businesses. However, it won’t help you get the best selling value. For that, you need a professional business valuation in Melbourne. Experts thoroughly evaluate the current worth of your company, investment and assets. The business valuation expert will assess and provide you with a detailed report that comprises of all the financial and non-financial factors that can affect the value of your business.
Hire a Trusted Broker
If you are running low on budget, you can handle the business selling process on your own. However, it involves a lot of risk and challenges.
On the other hand, hiring an experienced broker in Melbourne can help you connect with a network of investors and potential buyers. They can reduce your stress level and guide you throughout the process.
Prepare Documents
This is a pivotal step of selling your small business. The potential buyers prefer buying a profitable and reliable business model. So, you need to win the trust by preparing all the important documents, such as financial records, lists of assets, tax returns, liabilities. Etc.
Find the Right Buyer
This can be the trickiest part when selling your business. So, it is good to begin advertising and connecting to the potential investors. Try to connect as many people as possible and find potential buyers.
Wrapping up
Whether you are retiring or exiting your business due to any other reason, create a proper exit strategy and sell your small business at the most desired price.
