Are You Ready to Sell? Here are Three Steps to Prepare You

The day will come when it is time to sell your business, whether for retirement or to move onto another business venture. If you plan to sell there are three things that can improve your selling position before you put your business on the market. While you are doing this, contact Hallmark Business Brokers and let us manage your business sale for you.

Improve Revenue

Prospective buyers want to see that a business is improving rather than declining in sales revenue. If your sales are stable or declining you need to find ways to improve them before you solicit a buyer. Some things you might try include:

  • A sales incentive to your employees who bring in new clients or business
  • Accurate documentation of all sales and expenses
  • Adding sales staff to increase your market penetration

Start Reducing Your Personal Influence in the Business

Perhaps this sounds counterproductive when selling, but buyers want to see a robust management system in place, not you as the business owner controlling all aspects of the operation. A business managed by a single person may not be successful when that person leaves the business. This is a good time for you to start building a strong management team that can operate well even if you aren’t involved day to day. When sales negotiations begin, you can still represent the business as yours and show your team is ready to manage it successfully when you are no longer the owner.

Sell off Inventory for Cash

As a business owner, you may have been tempted to retain some inventory for various reasons. However, that inventory can become a liability when you are trying to sell your business. Prospective buyers are not interested in buying old inventory that has no value to them in your current business climate. Take the time to reduce your inventory and turn it into cash that will look attractive to buyers. The same goes for old equipment or other assets that are no longer used by your business. Get rid of them before you put the business up for sale.

There is a lot more to selling your business than these three steps, but the suggestions above are a start. The next important thing is to contact Hallmark Business Brokers in Sarasota FL and let us handle all aspects of the sale for you. We have extensive contacts throughout the area and lots of experience in bringing owners and buyers together for a successful sale. Of course, we are also eager to work with people who are looking to buy a business. For more information please call 941-445-4726.