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A business requires a lot of hard work, dedication, and sacrifice to be established. The road is full of difficulties, but once it stabilizes, then there is no looking back. The thought of selling a business is huge, and one should think twice before taking any such steps. Once the decision is made, then the next question of how to sell my business arises.

Every situation might not be appropriate to sell your business, but for the right times it’s worth it and pays off pretty well.

Selling a business is not as easy as it seems, it is a rather difficult and time-consuming process. Spontaneous decisions might lead to regrets, so it is best to prepare for a year or two before the selling takes place. In this way, you would be more organized as well as opt for the highest amount available in return. Selling business depends on several factors that ensure smooth processing.

How to sell my business?

Here are a few steps that you should follow to get the utmost outcome and to navigate the sales process effectively.  

Step 1: Know the market valuation of your business.

The most important step is to know the valuation of your business. Determining the value is not an easy task, rather you would require professional assistance to determine the actual value of your business. Additionally, involving a third party in the process of valuation would add credibility to the price preferred.

Moreover, it is essential to know that the cash flow factor alone will not convince a business buyer. Imagine yourself as a potential buyer and assess accordingly.  You may need to formulate ways in which the business can grow and thrive constantly.

Step 2: Assemble your finances.

In this fast pace world, everyone is looking to invest in a profitable venture. A potential buyer would be interested to invest in a business that is not only profitable in recent years but also the upcoming future. They would consider every factor critically before investing. Thus, it is your responsibility to gather all the crucial information before launching your company in the market.

A business consultant would provide the majority of answers to the question of how to sell my business. You should review all the financial statements and tax returns for the past 5 years. Provide detailed information on how to run your company along with the list of equipment that you would sell including, any intangible assets. As a seller, you need to be transparent to the buyers and inform them about the valuables they are getting.

Step 3:  Increase your sales

Buyers would be interested in the sales and the gross profit range to evaluate the workability of the business. According to a survey, the lists of the desired businesses were the ones that have a sales growth of 30% or more by each progressing year. This means that Savvy buyers are willing to acquire businesses that are prospering, not just surviving. One of the negative aspects of business is having fewer customers. This is because the revenue of a business will be at stake if any of these customers left. Thus, it is important to have a huge customer base.

Step 4: Plan your exit

Being prepared is what we all need, so it is essential to plan earlier if you want to sell your business. This would improve your sales, accessibility of financial records, and attain a stronger customer base. It would make your business appear more attractive to a buyer.

Markets are constantly changing, so it is essential to keep yourself updated with recent values and trends. The best moment to sell a business is when it is in good financial shape. This would provide you with great value. Therefore, a proper exit strategy is necessary to avoid any unexpected situation that compels you to sell your possession.

Step 5: Look for a third party business broker

A business broker plays a key role to get the maximum value for your prized possession as well as finding an appropriate buyer. A broker can be helpful for the following reasons:

1. Evaluating a business value as well as negotiation.
2. A broker performs the sell side activities. This is to confirm a successful closure.
3. A broker is useful to locate potential buyers.  This process involves listing your business on different marketplaces offering the best price possible.
4. An important duty of a broker is to assess buyers and maintain the confidentiality of the process.
5. The majority of the deals fail during the due diligence activity. The work of a good broker is to guide you through the process to focus on the business running.

Step 6: Select an appropriate buyer

In many cases, third parties sponsor business acquisitions. One reason for which transactions fail is that the buyer is incapable of securing loans after making an agreement with the seller. Thus, it is essential to verify each buyer before engaging with them.

These steps are an appropriate answer to the question of how to sell my business. Following them will not only increase the engagement of your business but also help you to earn great profits.