7 Tips For Selling Your Michigan Business in 2021
7 Tips for Selling Your Business in 2021
It is vital to follow deliberate steps to ensure the sale of your business is successful.
If you are planning to sell your business now or years from now, the most important thing you can do is to have a plan from the beginning.
Depending on many factors you may not get the price you want. You may have an unrealistic price in mind, but in many situations, the price you want doesn't always match what a buyer is willing to pay.
Selling a business is complex. You will need to keep your emotions in check and separate your personal expenses from the business and get everything in writing.
The thought of selling your business can seem overwhelming. The way you feel about selling will most likely be linked to your motivation for doing so. Whether you've led the business to great success and you've decided you want to go out on top or you're moving onto another venture, preparing your business for sale and vetting potential buyers can be exciting. If you're retiring, this can also be an exciting, although bittersweet time.
1. Assemble Financial, Legal Help
Getting your financials together is the first step. No matter what the reason for selling, it's very important to gather the necessary financial, legal, tax, and business advising professionals to ensure the process goes as smoothly as possible. There will be many details that come up for which you may be unprepared, so having the proper resources will be essential. We often work with Joseph Nafsu to help with legal matters.
If you're in a business where a sale may cause concern with employees or customers, it's probably best to keep a potential sale quiet until you have identified a buyer and finalized the details. This may include determining how you will transition your customers to the new owner.
3. Hire a successful business broker to help you with listing your business for sale.
The right business broker can help give your business market visibility where you want it and will increase your chances of finding the best fit. A broker can also help you set a realistic asking price, and help you with marketing your business and contacting potential buyers on your behalf. You can learn more about the services we provide here.
4. Set a realistic initial asking price.
If your business is doing well, it can be tempting to set a very high asking price. In reality, there are many factors that buyers will look at when considering a purchase. Consider how all of these things will factor in and how you would view the business from all angles if you were the buyer. Consider profits, client relationships, and the personal investment of time that will be required for the new owner to make the transition successful, and set your asking price accordingly.
5. Maximize your curb appeal.
Many people overlook the outward appearance of their business when it comes time to sell. Make sure that your location is clean and tidy and that any necessary repairs have been made. If there is equipment required to run your business, make sure it's all in working order. Make any outdoor improvements to landscaping, signage, etc.
6. Don’t forget about your “Digital Storefront”.
Having a fresh, modern and highly functional website can be as important as your physical storefront, particularly with the lingering effects of Covid-19. A website usually isn’t enough these days. It would be beneficial to create and maintain relevant social channels which could include Facebook, Linkedin, Instagram, Twitter, Pinterest, and others. Potential buyers may find acquiring a business with a great digital presence as a strong advantage of buying the business. It may be worth hiring a professional like the folks at Cherish Local to assist with this.
7. Tie up loose ends.
It's essential that you make sure you have made good on all payables, late payments, defaults, and promises. For instance, if you promised a team member shares in the company, even if you are selling, it's time to reward the person you promised the shares to. Having any loose ends may cause problems when you are trying to complete the deal, so make sure you tie up all loose ends, even the small ones.
By following these tips, you'll set yourself up for success and increase your chances of finding the right buyer, and fetching the right price for your business.
Nadir Jiddou, is the Michigan Business Broker. Nadir has helped scores of clients sell their businesses. Nadir has bought and sold many businesses himself and has surrounded himself with the right professionals to assist you with all the tips above. You can set up a free consultation with Nadir here.