A vintage saying goes, “the two best days of using a boat – the first, when one purchases it and the second, when you sell it. The same generally seems to apply to some start-up businesses too. fusionex
As financial experts point out, a business can be sold only once. Even if the owner of a business has no intention of selling it at any particular time, there may come a time launched imperative to do so and some intend to smoothen the process may have to have place prior. The preparedness such a plan provides may also be helpful get a much better price for the business when it needs to be sold considering the amount of hard work and effort that moved into investing and managing a business in the first place.
What it comprises
The need is not to make a commitment to sell but for be informed about what is necessary and what it entails to sell an enterprise. Some of the important aspects to understand and some upfront questions that are pertinent include:
– What is the business worth? – This kind of is the first question every business owner has to ask and also evaluate. However, money ought not to be the only reason for selling because then it means that the particular owner is not exactly prepared to sell and chances are that the company will be undersold. With that said, whatever valuation is done by the owner, curator or banker, only market trends can definitely evaluate the current value of the business.
– Is the reason for selling a valid one? – Once again there is a double-edged sword; if the business owner has a very stable reason it will more than likely be sold. Here, the catch is to have reasonable expectations that raise the likelihood of the business getting a good buyer at the price expected.
In the event that these two basic questions have been answered positively, there are a few important things about the business that need attention and putting together.
A preliminary checklist of the business as well as its functions should include:
– Profit and Reduction statements returning at least three years
– Government and Income Tax earnings
– List of resources such as equipment and fittings
– Lease related documents
– Details of loans taken, if any and repayment schedules
– If business is a franchise, conditions of the franchise contract
– Stocks of cash readily available, portions to receive etc
– Details of additional shareholders or business associates, if any
You have to remember that any business, particularly a little one, has to associated with right impression with the customer. The above details help to supply a professional outlook and will help in impressing a potential buyer.