If you are having trouble managing your business or simply do not have enough time to run it properly, then you may have asked yourself, “Should I sell my business?” This is a valid question and you should always ensure that you ask it at the most appropriate time. Here, we present a number of ideal ways that you can use to properly sell a start-up company.
1. Local Selling
The first and the most preferred method should always be to sell a company to local buyers. Local investors can better understand the minute details about your business and they may also be willing to invest in a local venture close to their home. Also, research indicates that most people looking to sell a business find new owners within 50 miles of their own location. In fact, for smaller businesses, most business owners can be found within a small 20-mile radius.
Once the value of your business rises, and you move towards a mid level company having a worth of over one million dollars, then it can be difficult to find local and amateur prospects. You should therefore, always present the various aspects of your business venture to the local interest first, especially if you are selling a start-up business.
Here, are a few important elements to cover when you are pitching, “I want to sell my business”, to the local investors.
Find Common Interests
You will increase the chances of selling a business considerably if you are able to find people who share your interests and hobbies. People with similar hobbies are able to better understand the way you have established a business and take a keener interest in the start-up that you are presenting to them for a change in ownership.
Target the Right People
It is also essential to select the right kind of local people. You should always prefer those who already have experience of running businesses. It will be best if you can find people who belong to the same industry as the business that you are selling. If you sell a business to a person who is simply looking to invest their savings, you will find that your business venture will soon reach a ruined state in the near future. If you find a person who is not only local, but also excels at running businesses, only then will you achieve a successful transfer of ownership.
Use the Right Sales Pitch
Many people fail to sell to the local investors, because they do not know how to sell a company. You need to work on preparing the right type of sales pitch. This pitch should describe the positive aspects of your business, while clearly showing solutions for the problems at hand. You should clearly describe positive reasons for selling a business and ensure that you are able to highlight the various ways in which the new owner can achieve business success.
2. Selling with a Broker
One of the best answers to the question of, “how to sell my business?” is to contact a broker. Good brokers also work as business appraisal agents and help you identify the right worth of your business. They ensure that you are able to understand the worth of the different tangible and intangible components of your company, and properly evaluate the total cost that you should be accredited with, when selling a business.
Brokers can charge as much as 15% of the total price, but there are better deals that are out there. You should survey a few of the top choices and then you will be able to select a broker who understands your business. The right agent may help you find prospective investors who understand your business idea and are willing to take your venture forward in the right direction.
Here are a few elements that you must observe when selling through a broker:
You need to obtain a genuine appraisal if you are using a broker to sell your company. You can use the services of a third party appraisal company or simply ask a selling agent to help you identify the actual worth of your business start-up. You should personally go over the details in order to understand if the appraisal is performed in the right way.
You should select brokers or agents, who have a prior record of selling similar businesses. There are some brokers who excel in selling businesses that belong to a particular industry, such as those that sell real estate or technology businesses. There are others, who are always interested in selling innovative businesses.
A good broker helps you sell a company by providing you regular updates about the prospective investors. This allows you to contact the interested entities quickly and ensure that you are able to present your business idea to them in the most concise manner. Simply speaking, regular follow-ups with probable owners help you sell a company fast.
3. Selling through Online Trading Centres
There are several online services these days that help you connect with potential business buyers. You can sell a company online if you are able to present the right information about your business. If you simply enter the correct information about your enterprise, you can often find out the details of buyers who are already looking to buy businesses that are similar to yours.
Most online services do ask you to become a member though. Once you are a member, you are able to act as both, a buyer and seller of businesses. This way, not only can you get a business off your hands, but also buy a business start-up, which is exactly according to your financial and managerial requirements.
One of the best online services in this regard is provided by Business Trade Centre. Here, we are able to efficiently recognise your need for selling a business by connecting you with the best prospective business buyers. You can search either by your area or by the industry of your business venture.