J.Adams Network

How Do I Sell My Business?

The best way to sell a business is to first know what the business is worth. A valuation of your business will help you negotiate a good deal with interested buyers. Your records have to be tidied up and buyers must be convinced about the growth potentials of the business. Even if you're currently not making a lot of profit, what most people look out for before buying a business, is whether or not, it has good profit potential. One of the ways they can determine this, is from your books. Engaging an accountant to help you with your financial statements, tax returns and other income details may help make this process easier.

The best way to approach selling your business is to put yourself in the position of the buyer. What are those things you'd look out for if you are the one buying? Here are a few thoughts that would help you do this easily:
Verifiable Claims: Consider the fact that buyers would want to see a track record of profits and your financial claims must be verifiable. Nobody wants to buy a business that is not likely to grow.
Sustainability and Viability: Buyers want to be able to build on the foundation that you have laid and are not likely to be interested in resurrecting or trouble-shooting your business. You should therefore work on making sure your business is thriving, before you sell
Honesty: You should be ready prepared to answer a lot of questions. Do this honestly and don't try to hide anything from your potential buyers. Everyone knows that businesses do have ups and downs, and would not expect your business to be perfect. An undisclosed fact that is discovered later, may lead to a prospect turning away from the deal.