| When to sell a business is the most common | | | | business may be just the thing that gets it sold. |
| question among business owners. The time to sell | | | | People like to buy businesses with the right things |
| is when you want to move on to the next | | | | wrong. If a manufacturing company had a great |
| challenge or retire. Efficient markets price | | | | line of products but poor marketing, a marketing |
| everything from gasoline to cheese fairly and | | | | person could buy the company and maintain |
| your business is no different. This is true as long | | | | existing product line and add strong marketing. |
| as there is a liquid market for your business; | | | | The business would be more valuable for the new |
| meaning there are enough buyers and sellers to | | | | owner after marketing was added. |
| create an efficient market. People worry about | | | | Your business must be presented in a way to |
| not getting enough money for their business | | | | create an efficient market so you get maximum |
| instead of worrying about their buying power. In a | | | | fair market value upon sale of the business. This |
| buyer's market, buyers demand a discount so | | | | process must be done without anyone knowing |
| you may get less for your business, but you also | | | | your business is for sale until you leave the closing |
| get more buying power from the sale of your | | | | table. Failure to do this could result in the loss of |
| business. In a seller's market, you may collect | | | | key employees, customers and vendors. |
| more money at closing, but you will have less | | | | Business brokers or business intermediaries are |
| buying power as goods and services are priced at | | | | commonly used to connect buyers and sellers. |
| a premium. As long as you create an efficient | | | | Business broker typically collect a fee of 10-12% |
| market for your business, the time to sell is | | | | of the sales price, but some will negotiate |
| whenever you are ready | | | | depending on the circumstance. It is possible to |
| A strong business is worth more money than a | | | | sell a business on your own, but you must |
| weak business. Every business owner should | | | | carefully plan how you will present the business to |
| always be strengthening their business to enhance | | | | the largest amount of buyers while maintaining |
| its value. Don't worry if your business isn't | | | | complete anonymity so no one knows it's for sale. |
| perfect, none are and the imperfections in your | | | | |