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 IS IT REALLY TIME TO SELL?

Selling your business is a major decision! You have devoted your time, money, and energy into building, running, and operating your business. It may well represent your life’s work. If you have already decided that now is the right time to sell, you want the very best professional you can get to guide you through the whole process, not just list it and forget it. This the difference between just getting rid of your business and selling it for the absolute best price!Following are some of the most common topics and questions frequently brought up by sellers. If you have any other concerns or questions that we did not cover here, then please don’t hesitate to contact us.

Your First Steps:

Let’s say that you have decided to at least entertain the thought of selling your business. There are key steps you will need to do before you do.The first thing you have to do is to locate all the  information about the business. Below is a small checklist that will assist you:

• Three years of Federal Income Tax returns for the business
• Three years’ profit and loss statements
• The lease and lease-related documents
• A list of any loans against the business with payoff estimates & who holds them
• Copies of any equipment leases, if applicable
• A copy of the franchise agreement, if applicable
• List of fixtures and equipment
• An approximate amount of any inventory that is needed to operate the day to day operations of the business, if applicable

Advice: If you’re like many of the small business owners out there, you will spend some time looking and searching for these items above. Once you gather them please spend some time to update anything that has not been updated in the recent past. You may want to get a file folder and have it all presentable for that prospective buyer. This is a vital part of selling your "baby".
Let’s be frank, if your business is not making a living wage for someone to buy this business, it probably will not be sold.

Some say Buyers buy businesses for many of the same reasons that sellers sell businesses. It is important that the buyer is as serious as the seller when it comes time to purchase a business. If the buyer is not serious, the sale will never make closing. Note a few reasons buyers buy:

• Want to be their own boss
• Have been or are going to be - Laid off, fired or relocated 
• Early retirement
• Hate their job
• Desire to do your own thing, change of pace

The Buyer

In order to pursue the dream of owning one’s own business, the buyer must be able to make that “jump of faith” necessary to take the risk of purchasing and operating a business. Buyers who want to go into business strictly for the money usually are not realistic buyers for small businesses. Here is what a willing buyer should have:

• Reasonable expectations of what business ownership can do for them or their family
• The desire to buy a business
• The need and urgency to buy a business
• The financial resources
• The ability to make his or her own decisions

Here are some questions that you might be asked and should be prepared to answer:

• Why are you selling if its so profitable
• What is the annual increase in sales?
• How much is the inventory?
• What is the debt?
• Will the seller train and stay on for awhile?
• What makes the business so special?
• How much money do you really make?
• What can be done to grow the business?
• What can the buyer do to add value?
• What kind of  profit do you make in the slow months?
• What are your slow months?
• How much money will it really take to buy this business?

Appearances Do Count

Don’t assume that a new owner will want to fix or replace items that are needing repair or replacement. If not in good working order then they will want to reduce their offer price.

Eliminate the Surprises

Long before you put your business on the market, eliminate the surprises! Review every facet of the business and remedy any problems that could appear during the sale process. No one likes surprises – most of all potential buyers. 

Clean up Books and Records

Remember that if the IRS ever did an audit you should have everything in order so as not to break any laws or be accused of any misleading information. Many buyers want to see how you track sales and how much it will put in their pocket. Make that easy for them to see.
We look forward to working with you in finding a suitable buyer for your business. You, as the seller, are an integral part of the total marketing program. Below you will find a few friendly recommendations that will help in our marketing efforts when you decide you are ready to sell.

• Keep normal operating hours. Don't change them, let the new buyer do that.
• Repair signs, replace outside lights, etc. You don’t want your business to look as if it has been neglected.
• Repair non-operating equipment or remove it if you are not using it
• Remove items that you will not include in the sale, personal items, broken equipment, especially if inoperative.
• .Maintain inventory at a constant level. If you let your inventory slide, your business will look neglected. If anything, increase it so your business will look busy.
• Clean up the outside of the building or premises.
• Just like selling a home, presentation is everything. Clean up the inside too. 

Try to put yourself in the place of a prospective purchaser of the business. What would you do to make it more attractive or more sell-able? Obviously, the financial records of your business are critical to the sale of your business, but how it looks is also important. Remember that first impressions really matter! If a potential buyer doesn’t like what they see during that time, you may never have another opportunity to impress them. 

If you have any questions, please don’t hesitate to call us. We look forward to hearing from you!
If you would like to register for a call back you can also go to the drop down under Selling to the Sellers Registration tab or Call today - 602-399-1466 - Ask for Bud or email to BudBizBroker@gmail.com