Deciding to sell a business is a very big decision, especially if it is a business that you have been committed to for many years. Whether you own a small clothing boutique or a chain of graphic design shops, it is important to make sure that you make the right decisions about pricing, timing, and marketing and other important decisions about selling a business. Selling a company is a decision that requires the help of many professionals, from real estate experts to business brokers, finding the right resources can help you make the best decision when it comes to selling that a business that is an investment in your time, energy, and money.
What Is the Best Time of Year to Sell My Business?
Although there is no magic time to sell a business, you may be able to get the best offer if you decide to sell at a time when you can show positive sales and high traffic. The fact that you can show a high number of foot traffic coming out of your business is one indicator that you are offering a profitable business that will be a good investment for the next buyer.
What Is the Best Way to Decide on a Price When I Want to Sell My Business?
It is important to make sure that you understand the value of your business before you get ready to list it for sale. Determining the right price requires a survey of the values of other companies that are similar in size, in location, or in number of employees. Finding the correct price, in fact, involves research into not only the financial statements of your business over the last five years, but also how your sales compare to similar companies and how your sales numbers compare to your competition.
Consider these facts and figures about the process of selling a business and the role that both large and small businesses play in this country’s economy:
- 63% of surveyed business brokers indicated that in the year 2016 there were more business owners looking to sell than there were qualified buyers on the market.
- 70% of surveyed business brokers reported that at least 25% of their sales were related to Baby Boomers
- 7,842 small businesses were sold in the year 2016, according to the BizBuySell.com Insight Report.
- America has nearly 28 million small businesses, a fact that means that this is an important part of the American economy.
- Economic uncertainty, the cost of health insurance benefits, and a decline in customer spending are the top three challenges of running a business, according to a report by the National Association of Small Businesses.
Whether you are looking to sell a small clothing boutique that you have owned for three years or you are ready to sell an auto parts sore that you have owned for 20 years, finding the right resources can help you understand the entire process. If you want to find the answer to how to sell my business, working with realtors and property investors is a step in the right direction.