Updated: Sep 14
If you're a business owner in Sacramento, you may be interested in selling your business. Selling a business can be a complicated process, but it can be a smooth transaction with the right advice and planning. This blog post will outline 9 tips that will help you sell your business in Sacramento.
1. Determining why you want to sell your business.
Why are you thinking about selling your business now? There are many reasons why business owners sell, such as retirement, relocating, or pursuing other interests. Your prospective buyers will what to understand your motivation to sell. Articulating your reason will help you build credibility early in the evaluation process.
2. Understanding the value of your company.
Several methods can be used to value a business. A standard approach is to use a multiple of earnings, which considers the profitability of the business. Other factors that can affect the value of your business include the size and growth potential of the company and the industry it operates. It's helpful to discuss this, and many Sacramento business brokers will provide a valuation at no cost.
3. Document all of your processes and procedures.
One of the things that buyers will be interested in is how your business operates daily. Having detailed documentation of your operations and policies will show buyers that the business can run smoothly without you. This is often a key selling point for many businesses.
4. Review your financial records.
Before you start marketing your business, it's essential to have your financial records in order. This will give buyers confidence that the numbers presented are accurate and provide them with a better understanding of the business's financial health.
5. Focus on increasing sales.
One way to increase the value of your business is to focus on growing sales in the months leading up to the sale. This will show buyers that the business has growth potential and is a good investment.
6. Determine what will be included in the sale.
When selling a business, you'll need to decide what will be included in the sale. This can consist of inventory, equipment, real estate, intellectual property, and customer lists.
7. Interview business brokers.
Once you understand the value of your business and what selling it entails, you'll want to start interviewing business brokers. A broker can help with selling a business, from finding buyers to negotiating the sale price. When meeting with brokers, ask about their experience selling businesses in your industry and in Sacramento specifically.
8. Get your business SBA approved.
SBA approval adds credibility to the health of your business. It's especially attractive to buyers who need to secure an SBA guaranteed loan to purchase a business.
9. Market your business and pre-qualify prospective buyers.
Once you've selected a broker, they will help you market your business to pre-qualified buyers. This includes creating a marketing package and listing the business on appropriate websites. Not all buyers will be qualified, so it's valuable to work with a broker who has experience selling businesses in Sacramento.
If you're thinking about selling your Sacramento business, we can help. Contact us today for a consultation.