For many small businesses that may be thinking of selling, the last few years have probably been filled with cost cutting, rearranging, and simply trying to be patient while waiting for the market to pick back up. Maybe they waited too long for the market to pick up, and they just cannot afford to keep the doors open any longer. If that’s the case, Reuters has a few tips for people getting ready to sell.
Plan Ahead
Make sure your financial records are in order. Keep a minimum of three years of documents, including tax returns and expense records. These are essential to establish buyer trust in the economic history of the business. Also, be sure to resolve any outstanding business issues.
Understand the Market
Overestimating your value can lead to a long and difficult sale process, while underestimating will leave money on the table. Expect an improved selling environment in 2011, but don’t make the mistake of asking for pre-recessionary prices.
Get the Word Out
If you choose to sell on your own then market aggressively. Put together a full marketing plan, including but not limited to getting your listings posted online, in the local newspapers and appropriate trade publications, and networking through friends and family.
Photo by Casey Serin