Seven Steps for Selling a Small Business [The Complete Steps]

Selling your company can become a very difficult task. It requires proper planning and application of strategies before selling your company. Your main objective is to gain the maximum profit by selling the company. Profit increased depends on several factors such as the reason for the sale of your company, the structure of the business, the timing of the sale of the business, etc.

steps for selling small business

Here are the seven steps one should follow before selling their business to gain the maximum profit. They are:

1. Reasons for selling your business.

You should not take any rush decision of selling your company. Before selling a business, one should clearly know the advantages and disadvantages of selling the company. You should have a proper reason for selling your business. Some of the common reasons for selling a company are retirement, partnership disputes, illness or death of the partners, change in the business value, movement into a new industry, etc. Selling a business because it is not profitable is not a proper reason, as this will make it difficult to attract buyers.

2. Right time of selling the company.

To sell your business, you need to start preparing and planning as early as possible. It is advised that you should start making at least a year or two before selling your business. This will help you to develop your business structure, improve your financial records and increase your client base, which will result in the attraction of buyers. You have to wait for the right time to sell your business as the market fluctuates continuously.

3. Valuation of your company.

Before selling your business, you need to know the value or worth of your business so that you can get the maximum profit. Calculating the valuation of a company is a complicated task, so you need to hire a business appraiser. Besides physical assets, the cost depends on several factors. The document of valuation will impress the buyers and will add credibility to your asking price.

4. Choosing the broker.

Finding the right buyer can be tedious as well as a time-consuming task to do. Hiring a broker will improve your chances of getting a reasonable price. However, he will charge a high commission for the sale of your company. On the other hand, if you sell your business on your own, it will save you money. For small businesses with lesser assets, it is always preferable to sell your business without the help of a broker because in that case, you will gain more.

5. Prepare the documents.

Before selling your company, you need to prepare the documents that are required to market your company. You need financial statements and the tax returns for the last three years. You should hire an accountant to make sure that all your documents are in the correct order.

6. You need to find a buyer.

Once your company is ready for sale, and all your documents are in order, the next step to find a buyer. This is a time-consuming process, and you need to be patient. You should advertise your company efficiently so that it attracts potential buyers. Keep in touch with potential buyers continuously. Along with that, you must run your company efficiently so that it attracts more and more buyers.

7. Managing the profits.

You should start planning what to do with the profit that you will earn. You should also have knowledge about the tax obligations associated with your earnings. It is better to hire a financial advisor who will assist you to invest your earnings wisely.

How to Use Tech to Manage Your Small Business Money

If you’re a small business owner who hasn’t made the transition to modern technology for making financial management easier, there’s really only one question for ask: what are you waiting for? Technology has come a long way over the last two decades; it’s no longer just for scientists and robotics-engineers. You can utilize technology right away and see results for your business with the help of digital applications, software and websites. Here are some of the most compelling reasons your business should consider for taking advantage of all the opportunities technology has to offer.

Software

Modern technological software has evolved beyond all recognition over the last decade. While the advantages to using software are numerous most corporations find value in one specific reason: businesses that utilize technological software when managing their affairs, on average, see a twenty-six percent increase in productivity for their employees. CRM software, for example, seamlessly affords clients numerous advantages like simplifying market development strategies across the board. The majority of services are cloud-based, making them easily accessible no matter where – laptop, desktop, tablet or smartphone – a user decides to sign in. Business owners also get the opportunity to customize their software to meet the needs of their growing business.

Websites

How can you use the internet to your advantage for your small business? In a study conducted by The Atlantic, over a billion websites exist in the world today – thousands of which aim to assist business owners and entrepreneurs better manage their finances. Wise Bread is a personal finance forum by which users gain access to experts who bestow advice for spending less and saving more. MailChimp is another great example; it is an innovative website that assists clients seeking to better manage their advertising campaigns. Nearly every task in your business has a shorthand version online – you just need to search for and find it.

Digital Applications

There is a whole world of helpful digital applications at your disposal that can simplify even your company’s most complex financial situations. From budget trackers to accounting software and everything in between, modern applications make developing a strategy for financial tech as simple as ever by taking all the uncertainty out of corporate money management. Using analytics to drive better decision making is helping companies grow faster than ever.

Due, for example, is an easy-to-use professional service that allows its users to send invoices directly to clients, view status updates for payments and also send helpful reminders for due dates. For the business owner who despises accounting, QuickBooks Online is an incredibly popular cloud-based accounting application that’ll solve all your woes. Here are just a few more of the top applications on the market today:

  • Expensify: take a photo of your receipts and Expensify converts it to a document for easier filing
  • InDinero: offers accurate, up-to-date snapshots of the financial health of your business
  • FreshBooks: create and receive client invoices on one convenient portal.

Technology affords its wielders numerous advantages that more than speak for themselves. Don’t fall behind the curve. Bring your company out of the Dark Ages by incorporating technology into your next strategy – before your competitors beat you to it!

Small Business Branding Tips

BusinessSmall businesses typically don’t have much of a budget for branding and marketing. It is the sort of thing that’s really hard, because a lot of traditional marketing media is expensive. TV spots, radio broadcasts and widespread posters are expensive, eating away at the company’s money when it could be better spent elsewhere. However, there are ways to help people find out more about the products that are on sale without necessarily having to spend a fortune to do so.

The first thing to do is to look at all the potential alternatives. For example, online marketing avenues are much cheaper. An account on a social media site is easy to put together and doesn’t cost much. While there is a bit of effort required in setting everything up properly and making sure everything looks complete and real, not to mention the maintenance required, it is ultimately a cost-effective alternative for smaller enterprises to look into. [Read more…]

Marketing Your Small Business through Generating Referral and Repeat Business

Making Your Small Business Marketing Dollars Go Further by Generating Word-of-Mouth, Referral and Repeat Business

Relationship building is possibly the most effective way to market a small business these days. This is part one in a two part series that will give you a ton of ideas about how to market your small business through generating word-of-mouth, referral and repeat business:

 

Combat the clutter that your clients and customers filter out every day. 

We are so bombarded by marketing messages. Not one of us doesn’t experience information overload – nearly every day. There isn’t a lack of information out there about anything. In fact, the opposite is true today. If your business isn’t growing like you want it to, it’s not because there exists a lack of information about your product or service. It’s because of a lack of meaning.

[Read more…]