Things to Consider When Selling Your Business
Starting a business and making it successful encompasses a great deal of work, but sometimes it gets overwhelming and you feel that selling it is the best option for you. While the current business market is shaky with the global recession affecting everything, you still have a good opportunity to sell your business. Even if you decide to wait until the economy is in a better state, you can be preparing your business for sale. Here are some things to consider while preparing to sell your business.
1. If you have any problems within your business whatsoever try to get them resolved as soon as you can. Talk to any business partners about major decisions concerning the business and its sale, and make sure that a buy and sell agreement is in place before any sale is finalised to ensure a smooth transition.
2. Work on getting all of your financial documents up to date and as accurate as possible. This is a great way to impress the buyer of the businesses acumen, and it will help convince them that the business is worth the price you are asking for it. It’s best to be up front and honest about all aspects of your business as well. Even if there is something negative in the businesses history, not revealing it could lose the sale.
3. Be prepared to help finance the sale of your business, because the current economic conditions could keep the buyer from getting funding put into place. You can also start looking for a reliable business broker to help you in your search for buyers. They will be able to qualify the buyers for you based on their financial credibility and their ability to successfully run a business.
4. Discuss with the business broker the price you should be asking for your business. They have all of the expertise needed to help you determine a price for your business that is based on the current economic conditions, how the marketplace is moving, and how a realistic price will help you sell your business instead of leaving you out in the cold because your price is simply too high.
5. Stay in constant communication with your business broker throughout the preparation of the business for the sale all the way through to the finalisation of the sale itself. They know where to list your business for sale, who to contact and speak to during inquiries about the sale and ways to get the transaction completed in a reasonable amount of time. They will act as your representative for the buyer and they can assess the offers that come into their office. They can also help you structure the final sales transaction, and by working with them consistently you can build a trusting relationship that will benefit your business.
While waiting for the business to sell it is advisable to keep the business running as efficiently and profitably as possible, letting the business broker hand the sale for you. They are working on your behalf and by allowing them to handle all of the sales aspects for you; you can concentrate on making sure the business remains running at peak efficiency.
Help answer the question
How do I start a successful retail business?
I need assistance to get my questions answered regarding starting a retail business:
1. Which retail business would be best to start and why: a) Specialty retail business or b) Mail order business?
2. Which type of business is more predictable and does not change often: Specialty retail or mail order?
3. Many people say that PASSION is important when it comes to starting a business because the owner will have to work long hour to make his or her business a success. I agree with that but can you explain to me why there are many people out there who started their successful businesses outside their PASSION?
4. How can I choose products and services to sell that fit my personality and are part of my values?
5. I took a Myers-Briggs personality test and the result of the test shows that my personality type is an ISFJ (Introverted, Sensing, Feeling, Judging). Would someone like me who possess this personality type can become successful in operating his or her retail business?
hogarthassociates.com.au provides a business wizard tool, which helps you to take decision about your Business for Sale. We hope to build the largest selection of Businesses for Sale online in Australia.
This entry was posted on Tuesday, December 22nd, 2009 at 2:43 pm and is filed under business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 22nd, 2009 at 3:41 pm
well if you only sell a little its like a garage sale, but if you sell a lot it is like a business to the irs, and you are supposed to pay taxes on income from there, and charge sales tax to anyone in your state and report it and all, but then can you deduct tape,boxes gas and a car and computer for the business too, just wondering, good luck
December 22nd, 2009 at 4:17 pm
December 22nd, 2009 at 9:22 pm
business
December 23rd, 2009 at 11:26 pm
Yes , there are estate sales all year, they are interesting to go to . I go to many estate sales and have bought great items for E-bay. I also like storage unit auctions.
December 24th, 2009 at 7:23 am
December 24th, 2009 at 10:46 am
Firstly, you'll need to work out your captial requirement. It should be able to cover your rental, salaries, and other fixed overheads like utilities, telephone, etc for at lease six months to 12 months.
Secondly, you may also need to check with the relavant goverment agencies on licensing requirements.
Finally, you will need all your friends' and relatives' support to introduce bussiness to you.
Well, that's my 2 cent's worth. Hope it helps.
December 25th, 2009 at 10:00 am
Compared to the other costs of running a successful business, registering a domain and paying a webhost should be the least of your worries.
You should probably hook up with ebay. Go ask them what to do.
December 26th, 2009 at 12:34 am
I am a licensed real estate agent, specializing in commercial real estate. Here are my recommendations:
1: Clean up your credit. Prospective landlords and wholesalers alike will want to run a copy of your credit report. Try to pay off high balance debts on your credit cards, and close unnecessary store accounts. Your security deposit for your lease space will be based on your credit report. Most landlords will require first month's prepaid rent, and two months of rent as security deposit. Be prepared.
2: File a corporation and get a sales tax ID. You may want to consider having whomever has the best credit to be named "president" on the corporation, as your corporation name will be signing a lease for retail space and the president will be signing the lease. Additionally, having your corporation name and a sales tax ID established prior to speaking with prospective landlords and wholesalers shows that you are serious and ready to move forward.
3: Determine your square footage requirements. A typical retail store will fit comfortably into 900-1,200 square feet of space. This will give you plenty of room to display equipment on the wall space, and have racks for clothing. If you have larger equipment displays, consider going up to 1,400 square feet. Remember, the higher the square footage, the more money in rent.
4: A typical shopping center lease will be comprised of two components: Base Rent and CAM. CAM stands for Common Area Maintenance, and includes the property's taxes, insurance, and maintenance fees that are prorated and passed down to the tenants of the shopping center. A lease that includes base rent and CAM is called a NNN (Triple Net) lease. A lease that is only comprised of a flat fee per month is called a gross lease. Always be sure to ask what type of lease you will be entering into before negotiations get serious.
5: Before you sign anything, always ask for a Letter of Intent. A Letter of Intent, or LOI, will detail the basic terms of your lease, from rent schedule to security deposit. This document will allow you to negotiate on your base rent numbers, as well as free rent.
6: Don't be afraid to ask questions or consult an attorney prior to signing a lease. A few little sentences in a huge lease can make your tenancy a living hell. It pays to consult a qualified attorney, or trusted commercial real estate agent.
In terms of setting up an online front, I use Web My Style at http://www.avehost.com. They offer all kinds of packages for a first time e-commerce business. They are very friendly, and will give you a good deal on securing a domain name and setting up shop.
Hope everything works out for you! E-mail me if you have real estate questions.
December 26th, 2009 at 1:09 am
I don't think so..it would likely be a supply much like office supplies would be.