Key Questions to Ask Before Selling Your Business

Whether you’re hoping to retire or you’re simply ready to move on to your next endeavor, the decision to sell your business is one that every business owner should make under great scrutiny. The desire alone to sell a business is simply not enough to make it the right move. There are a number of important factors to consider before reaching the conclusion as to whether or not selling your business is a financially sound decision.

Here are a few questions to ask yourself to help determine whether or not selling your business is the right move.

  1. What is the value of my business? – Having a small business appraisal or small business valuation done by a professional liquidator is a great way to know just how much your business is worth and can act as a jump-off point in determining an asking price.
  2. shutterstock_67483474What are the costs of selling my business? – As with any major sale, there are some serious costs associated with the selling of a business. Lawyers, accountants, taxes, fees, business appraisal services, and a business sales consultant, should you choose to hire one, are all things that can start to add up and potentially offset the profit of a sale.
  3. Am I selling for the right reasons? – The reasons behind selling a business can greatly impact the way in which a business owner goes about the sale. A feud between owners, selling to avoid liquidation, or any other reason that may cause you to make financial decisions based on emotion can be dangerous. Buyers can sense desperation and exploit it to get a better deal.
  4. Is it the right time to sell – Knowing the market and the strength of your business is key in finding that window of opportunity to sell. While many business owners wait until business is waning to sell, the best time is actually when the business is at its most profitable. Buyers will see the success and that will translate to higher offers.
  5. Do I still want some part in the business’ future? – Not all sales mean that you have to wash your hands of the business and sever ties completely. There are many sales options that allow the business owner to stay on in some capacity. In fact, some buyers make it a stipulation that the original owners stay to run the day to day functions of the business.

For more information on services offered by Ideal Trading Liquidation Company, like business appraisal, business valuation and liquidation done by a professional liquidation company, please visit our website here. Or to have someone from our experienced team contact you, please fill out the Quick Contact form to the left hand side of your screen.