11 Tips For Selling A Business based in Michigan. In most cases, there is no right or wrong time to sell a business and there can be many different reasons like financial, lifestyle change, family commitments, location, etc. When a business owner has reached the decision that it is time to sell their business, there are many steps that need to be taken, carefully. If you are thinking of selling your business, here are some tips to get you started:
1. Hire a team of professionals to assist you through the tips below and protect the asset you have spent years building. Our firm at Joseph Nafsu Law assists dozens of business sellers just like you every year. We also work closely with business brokers like Nadir Jiddou of Michigan Business Broker, who can advise you on the best way to maximize your business’s sale. Nadir’s team provides a comprehensive marketing program to ensure your listing is seen by those most willing and able to buy. We realize some of the items below can be daunting. Protect your future by surrounding yourself with a team of professionals.
2. Give out the real digits. It pays to keep your financial books organized and updated. Provide all financial information that a potential buyer needs to know. They have the right to be given an accurate account of your profit and loss. Your financial statement should be complete. You should at least state 3 years of your business’ income statements. It would also help to provide your tax returns and lease statements. If you are under a loan, provide your current balance and schedule of payments. Your buyers would thoroughly inspect all the documents mentioned above. Be sure that you are ready to answer all their questions about the financial status of your company. If you can provide your buyer with a concrete business and budget plan, so much the better. It would give them the impression that you have an organized business to start with.
3. Don’t overprice. After looking at all your financial documents, we will have a good idea of what your business is worth. It is recommended that you hire a professional financial analyst to give you a fair monetary value for your business. You would not attract any potential buyers at a high price. The key to getting a quick sale is to keep the price of your required down payment very affordable. Some business owners are also willing to offer seller financing. This means that a seller provides or facilitates a loan for a buyer to close the sale. The buyer would then agree to pay an agreed amount over a specific period of time.
4. Make your business attractive. Entice buyers to buy your business by adding more value to your company. Make your package attractive as you can but remember to offer a fair price. More buyers would be interested in your company if you make all your paperwork organized, complete, and impressive. It would be a good idea to reduce your cost by avoiding purchasing pieces of equipment that are not really necessary.
5. Build a stronger customer base before selling your business. You can do this by offering promos, discounts, and special deals for your customers.
6. Providing complete documentation of your employers and suppliers is also a plus. You can easily sell a business by keeping your premises clean and attractive. If your budget permits it, it would be a good idea to renovate your business area. If not, cleaning and repainting would do.
7. Please do not forget about your online visibility also. Your “digital storefront” is as important as your physical storefront. You would never consider buying or selling a business that had no signage or electricity. A business that is not visible or active on search engines and social media can have the impression of being closed or less credible than those that have a good to great online presence. Hiring an affordable online marketing company like the folks at Cherish Local could help you gain significantly more money at closing.
8. Run your business. Even if you are selling your business, you should not stop operation. Keep your business running. Your buyers would be totally turned off if they would see even a slight hint of desperation on your part. That’s why it is important to know the reason why you are selling off your business. Keeping your company operational would give the impression that your business is profitable and still in good shape.
9. Keep things confidential If you are selling your business, don’t broadcast it to the world. Customers may have an impression that your company might be encountering serious problems, this would ultimately result in lower sales. Also, keep your employees in mind. They would probably look for another job even before you can make the sale. Losing manpower can be a real hassle on your part.
10. Know your buyers. Build a good rapport with all your potential buyers. Be aware that there are a lot of scammers and time-wasters out there. For this reason, always screen each and every buyer that you encounter. Watch out for your competitors who might play as a buyer in order to pry and gain confidential information about your business.
11. For your protection, hire our firm at Joseph Nafsu Law, we handle dozens of business transactions every year and we know how to properly advise our clients to achieve the best possible outcome. Our team can assist you with most of the heavy lifting stated above. In summary, you can successfully sell your business for a good price if you keep all your business and financial documents well accounted for. Next, keep your bidding process organized and legitimate. Our Michigan-based firm at Joseph Nafsu Law and other professionals as mentioned above can be with you every step of the way. We can be reached at 248.254.4530 or by email at firstname.lastname@example.org.