Selling Your Business
Selling businesses have long been profitable ventures for individuals, and companies, who have working operations that can be listed on the open market, or privately, to generate buyers.
Even though it is common to hear about the sale of major corporations, mega mergers, big company buyouts, and hostile takeovers of big companies, many small and midsize businesses are sold every day.
The small and midsize companies are bought and sold without a lot of fanfare, but nevertheless, these sales are important to the sellers, buyers and the economy.
Some businesses are even set up exclusively for sale in the future and the profits can be worth the time and effort.
But to build a business to sell, you have to be somewhat knowledgeable about the operational aspects of the business and you need to make sure that there is a market for that type of endeavor.
In other words, the business needs to be up and running and you need to make sure that it is the type of business that someone else is going to want and will be willing to pay your asking price.
A realtor or business broker should be employed who is familiar with business opportunities in your area. The realtor or business broker should be able to get a business market analysis completed and help you determine a selling price.
When selling your business, remember that an over priced business opportunity is like any other over priced commodity, it is going to be hard to sell.
You may also want to consult an attorney concerning any legalities associated with the business. Like selling a home or other real property, there will be tax consequences for the seller if a profit is taken.
Good record keeping is a must! If someone is interested, he is going to want to see your sales records, your profit and loss statements, and an accounting of your stock and goodwill. For this, the use of an accountant may be wise.
Location is also an important issue when it comes to selling your business, especially if the successful operation of the business depends on how many people enter the establishment or are at least aware that the business is there.
This means eye contact. The more people who see the business in operation makes it more desirable when it comes to selling it.
Selling your business and making a profit at it may also depend on what type of business you operate.
Does your business make and or sell arts and crafts, books and magazines, antiques, clothing, groceries, tools, or larger items such as cars, trucks, boats, small airplanes, tractors and other farm machinery, processed lumber?
Is it a business that provides services such as nail care, private schooling, photography, limousine or car rental, restaurant or food catering, wedding planning, travel procurement or loan company?
Do you own a wine producing business, ice cream making venture, tool and die making business, auto mechanic shop, motor cycle shop or do you make beauty products?
Whatever the business, there is a market for it. There are many types of businesses offered for sale and there are many entrepreneurs in the market looking to buy existing businesses.
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