As a small business owner in Minneapolis, there may come a time when you want to move on to something new or perhaps simply spend time with friends and family. As a business owner that is actively involved in the day to day operation of your company, making the decision to sell a business is often not an easy one.
Regardless of the specific reasons for selling, there are a series of steps that need to be completed to sell a business. Leaving enough time to get these steps done before you plan to market your business will be essential in reducing the stress that can occur if the seller is not correctly prepared.
Contact a Business Broker
The first step in the process should always be to contact a reputable business broker. This will be essential to discuss your options and to evaluate your goals for the sale of the business.
The broker will also provide you with insight into the current market and talk to you in general about the sales process. This will be very helpful in understanding the timeline and the issues involved when you sell a business.
If you determine that the sale is the option you wish to choose, the broker will usually schedule a time to start a business valuation. Top business brokerages will provide this as a complimentary service.
The information you provide to the business broker about revenue, liabilities, assets and other relevant business information will be used to produce a very accurate valuation. This, in turn, will be used to determine a fair market value for the business.
For many businesses, small improvements or changes can help to make the sale of the business easier. This can include ensuring all contracts are renewed and leases and other issues related to the business are current.
Formalizing relationships with vendors and customers with contracts or written agreements will also add to the value of the business. Additionally, issues such as upgrading technology or even repairing equipment can also be essential in making a business more appealing for buyers at the asking price.
Keep in mind that it will typically take a few months to prepare a business to go on the market. The business broker in Minneapolis can help you in determining which steps need to occur to get your company ready for the sale.