Staying Informed

How to Sell a Business - Business For Sale...

We've been through a challenging economy and are seeing tremendous indicators of a long-term upswing.  Business that have survive the last 4 years, did so by properly adjusting their business model and financial situation.  Prior to the collapse, many individuals were nearing retirement, however had to continue do to the turbulent changes that hit.

Does that sound like YOU?  Many people are in your shoes.  Proving stability through the tough times, a large number of businesses are ripe for qualified buyers.  An amazing number of business owners are considering sales, with an equally amazing number of potential buyers on the market.  Buyers see businesses, like yours, as great opportunities to step into a business that has already had the waste trimmed and budgets optimized.  By bring fresh energy and marketing efforts, they stand to do great things with your existing business.

How do I Sell my Business
One may ask "What is involved with selling my business?" The process of selling a business will vary from business to business.  Small businesses placed for sale may have limited, yet admirable financial documents.  Larger companies and manufacturers may have a series of complex records to sift and prepare.  To start with, all have a common need.  The need to determine how much to sell the business for.

Valuation of a Business For Sale
Valuation of a business often relies on the financials of the business, industry multipliers and some real insight into the business and industry conditions.  There are various services that offer cheap valuations, some for as low as $49.  These services often just give you an idea of what a similar business may have been recently listed for.  Listen, every business is unique!  Other services may run $500 or more.  Again, they may give you an idea, but you get what you pay for.  I have found that good business valuations often run $3000 to $5000 for a small business.  Some larger businesses often run $10k to $25k.  Again, every business is different, requiring greater or less research, resources, and/or experience from the individual or firm providing the valuation.

For basic do-it-your-self snap shots, checkout a previous article I posted that provides a formula for determining Seller Discretionary Earnings and a ruff method of picking a multiplier.
http://biz-local.blogspot.com/2014/01/how-to-sell-a-business-as-an-individual-seller.html

You should also get your CPA to generate 3 year report of Cash-Flow, as well as P&L Statements.  Be sure to include all disbursements to owner, family or for owner/family.  Things like an automotive lease, cell phones or draws.

Where do I list my Business For Sale
The big question... Where is the best place to list your business for sale?  You are about to engage in Marketing your Business For Sale.  You seek potential Buyers as Contacts/Leads.  In many ways, you are about to go into the business of selling your business.

Marketing and Advertising require you to be Smart.  Reaching as many potential buyers as possible, but more specifically, qualified buyers.  Lot's of websites generate 'Leads'.  Cull through them, and you will notice the large number of bogus names, emails and phone numbers.  Your marketing and advertising efforts need to reach real people.  Now, there will probably be fewer contacts, but they should be richer in value.

About BizLocal.com
BizLocal.com was specifically built to use modern technology, in area of software, databases, page optimizations, mobile and tablet friendliness and search engine penetration.

You will want to prepare a few things to place a listing.
Try and include as much of the following information as you can;
  • Length of time in business
  • How many employees
  • Is the location good for business
  • Comparable's to businesses in the area
  • Give some general information on the company
  • Financial Information
  • Let them know about any bonuses the business may have, i.e websites
  • Always include a few phone numbers that you can be reached at
WAIT! This is important.
Many Businesses face turmoil in their employees or customer base when it becomes public knowledge, that you want to sell your business.
When placing your listing, consider using a County verses a City for location specific data, don't use the actual business name and consider details that may need to be broader in the public eye.
Once you qualify a potential buyer, you may be able to deliver greater details.
Not every business needs to worry about this, but do consider it as you prepare to market the business.
Contact info@bizlocal.com if you would like a generic email address, that no one else would recognize, at BizLocal, or other help on keeping it quiet!

Now, ready to Sell your Business?
Visit this page to list your Business For Sale NOW!
Or call: 1-800-785-2925
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