Selling your business doesn’t have to be a logistical nightmare. There are ways to make this a smooth and profitable operation. Here are a few handy tips that will tell you what you need to know about making this a successful process.
Previous Profits Don’t Equal Present Success
A very important point that you will need to keep in mind when selling your business is that your previous profits are basically irrelevant. It won’t matter much to a hard-nosed potential buyer that your business was extremely successful in 2003. They want to see the figures that represent this year.
This means that you may have to swallow your pride and admit that your business may not exactly be in its glory days. The very reason you are selling your business in the first place may have everything to do with this basic fact. In a situation like this, you will have to set the price of your business on its present, not peak era, value.
You may try to counter this by pointing out that your business was very successful in the past. All it may need, according to your logic, is a push in the right direction to get it back on track. A buyer may well reply by asking why, if this is the case, didn’t you supply this push yourself? In which case, you wouldn’t need to sell it.
It’s All About Profit, Not Gross
Many business owners are very keen to point out that they are enjoying a higher level of revenue at this point than any other in their career. On paper, this may well be the case. You may indeed be taking in more gross revenue than ever before, but this is not by any means the same thing as making a healthy profit you can take to the bank.
A smart buyer who knows what to look for when dealing with a business owner is bound to be aware of this. It may well be true that you are grossing $100,000 per month, but what they will insist on finding out is the total amount of all of your various costs. If these add up to $90,000, then the fact is that you aren’t making much of a profit.
It’s always best to be honest about your profit level versus your gross. This will give the buyer a more realistic picture of what to expect once they have bought your business. Honesty can help to bring your negotiations to a more satisfactory conclusion.
You Need to Prove Your Profit Margin
A quick search on the web for “sell my pharmacy” will yield some very interesting results, but one thing they may not be so eager to reveal to you is that businesses tend to sell on proof of profits. This means that you need to show that you have already made a handsome profit with the business you are selling.
You can relay to a potential buyer all the tales regarding the potential of your business that you can muster up, but this will not be the factor that makes up their mind for them. If your business has remained at the level of a potential goldmine, people are going to want to know why you haven’t been able to realize this potential.
What a buyer wants to see is proof that your business is a financial success. This will be the best way to convince them that they are buying into a ready money maker, not some nebulous long shot. Any documents that you can give them regarding the real success of your business will help you lay to rest any doubts that they may have.
It’s Time to Sell Your Business
The time has come for you to say goodbye to a very successful era in your life. You’ll need to stay alert as you put the final capstone on this phase of your career. These handy tips and tricks should see you through to a successful finish. Following them will help you make the sale of your business an efficient and profitable operation.