Whenever you set up a business, you must always keep in mind that a time might come when selling would be the best option. And at such times, you should not shy away from putting your online business for sale.
Selling any business can be a hectic task as it involves personally looking into every department there is to ensure you have the figures right and everything is okay. If you skip this bit, you are unlikely to find a buyer because no one wants to buy an unorganized business.
Whether you are just beginning to decide about selling or have already decided, there are certain steps that you must follow to successfully put up your online business for sale and expect to fetch fair prices. It is best to constantly keep track of what’s happening to avoid confusion when the time comes. Here we have listed all the steps that are involved in selling a business.
Selling your business requires working on every aspect to make it presentable for a sale.
- Select the Timing of Your Sale
Unless you have an emergency, you need not sell it right away. Give some time to your business and prepare it for the sale. Work on your business structure, financial records, and customer base. Ensure that all these make your business more profitable. A smoothly running business with a good record has a better chance of making a sale.
- Value Your Business Correctly
A lot of people put their online business for sale without seriously evaluating their company. They often think that arbitrarily putting a large number would impress the buyers. But it only leaves a bad impression as they would definitely look through your sales, profit, investments, equity, and other factors that decide the valuation of a business. Thus it is best to hire a business appraiser and evaluate your business seriously. The appraiser does not only decide the value but sketches a detailed explanation of the worth. This document will serve as proof of your worth, and no buyer can challenge you.
- Broker- Yes or No?
A broker saves time, true but also costs brokerage fees. On the other hand, if you list your online business for sale on one of the websites that deal with the selling and buying of businesses, you might save on your money and time. Moreover, most people these days like to conduct selling and buying over the internet. In case you have a trusted employee or friend who can draw connections for you, you can use their connections as well. But relying on a broker is not the best idea unless you do not have any other option.
- Prepare the Documents
Once you have taken your time and set everything straight in your business, you should focus on preparing the documents. Your tax returns file and financial statements should be clear, dating back four years. If you do not have an assembled or organized file, hire an accountant to look into the matter.
Make a list of equipment that you intend to include in your online business for sale. Neatly arrange paperwork and documents that might be relevant, like the customer’s list or paper of lease. Buyers consider customer lists as a great help when buying a business. It gives them a ready customer base that is easier to work with.
Make sure you have an up-to-date operating manual and briefs about how the business has been conducted over the years. Stock up your warehouse and keep the business running. Mend any area that might require your attention
- Look For a Buyer
Now finally, list your online business for sale and look for buyers. It is difficult to determine how long it is going to take for your business to get a buyer, but the average estimation stands somewhere between 6 months to 2 years.
You might also get interested buyers, but they are unwilling to give you the best price or make unrealistic demands. Therefore when looking for a buyer, keep the following in mind:
- Keep in touch with more than one interested buyer unless you are sure.
- Enquire about the authenticity of a buyer before divulging business details.
- Hire a lawyer and an accountant when negotiating a deal.
- Every agreement made should be put down in writing and not verbal. Even if the buyer happens to be your acquaintance or friend, insist on written agreements.
- Do not stay put on your price and allow some negotiation.
This is the last step, and eventually, you will get your buyer, and that would be the end of your endeavours.
Listing your online business for sale in the right place is very important. Make sure that you put your business on the right website. Follow the above-mentioned steps to get your business straightened and prepared for a sale, and you are bound to get the best price.
