How To Sell A Business: A Step-by-Step Guide
- 18 Aug 2024
- Sell Business
'Sell your business.' Do these words echo in your mind? Do you feel the need to sell your business to expand your current one? Do you feel you can't focus on your current one anymore and want to sell it?
Well, do you know that selling anything is a business in itself? If you want to sell your business, you will have to do business with many experts, such as financial experts to evaluate your venture, marketers to market your business, brokers to list your business, and lawyers to ensure a legal framework. DigiOwn can help you with everything as it is the trusted platform to easily sell and buy businesses.
So, how does selling your business work? We're here to help you sell your business in an easy-to-follow step-by-step guide.
Step 1: Identify the reasons - why you want to sell your business?
The first and most important thing you need to do before selling your business is to decide why you want to sell it. Is it the money, time, or loss of interest that has made you decide to sell it?
The reason behind you selling your business can help you further plan steps to sell your business. If you have lost interest in your business, you must figure out ways to ensure buyers find your business interesting. The first step of selling your business is to understand the reason.
Step 2: Decide the time to sell
Set a timeline to sell your business. Fix a date so you keep working towards selling your business rather than forgetting it because you have already lost interest in it.
Anything that doesn't appeal to us anymore is likely to be left unattended, whether it be a business or a machine. Anything that is ignored will wear and tear and lose its market resell value. If you want to sell your business with profits, make sure you have a timeline set. For instance, sell the business by January 2025. This way, you will be able to plan out other things like improving SEO, marketing, and more.
Step 3: Have the business evaluated
Your business might be worth millions, but its actual value might be billions. It is important to have your business evaluated by professionals. You can hire a business appraiser or sign up for DigiOwn's free business valuation service to get your business listed at the price it deserves.
Business valuation can add credibility to your business's net worth. The business appraiser evaluates your business and documents it to support its net worth. When a prospective buyer contacts you for your business details, you can show a professional evaluation of your business to have them trust you, and you can expect to win the deal.
Step 4: Hire a Broker
The next step to selling your business is to have a broker hired. But, if you use DigiOwn, you don't need a broker; DigiOwn can have your business listed within a few minutes without worrying about anything. But, if you choose the tough way, you can hire a broker to help you list your business on multiple websites and help you connect with prospective buyers.
The broker will handle all the formalities of connecting and scheduling meetings with prospective buyers. He will keep you informed of businesses interested in buying your venture and what price they are willing to pay. In short, brokers can do time-saving tasks for you so you can focus on your business.
Step 5: Documenting
Finding a buyer might not be difficult, but closing a deal is. You may find buyers interested in taking over your venture, but they might not sign the deal until you show them the results on paper. You need to have all your business records ready with you in case some buyer wants to see the paper first.
In your first meeting, the buyer might ask for documents showing profit margin, revenue, expenditures, cash flow, patents, trademarks, and other essential information. All this information has to be documented properly if you want to sell your venture with profits.
Step 6: Closing the Deal
Once a buyer has agreed to buy your business, you need to ensure that you get the full payment as you close the deal. The major problem on the online market is security. If you are selling a business online, we recommend using DigiOwn escrow service, which ensures the safety and security of the transaction. The buyer gets the deal as he wants it, and the seller gets the asked money.
Conclusion
Selling a business is not difficult if you have the right plan. Before you sell your business, evaluate the reason behind your selling the business and also brainstorm reasons why anyone would be interested in buying your business. If you have lost interest in your business or want to switch to a new business, set a timeline to sell your old business so you have finance ready for the new venture. It is also essential to have all the records well documented to show to prospective buyers for a quick closing of the deal.
