Here are 5 things to do after deciding to sell your existing business
Selling an existing business can be a herculean task for any business owner. But before taking on such an important decision for the future of the business, the owner should be a hundred percent sure about their decision. These six things will definitely help the owner to get the perfect plan for them.
- Estimating the net value of your business:
Net worth is just like the measure of the performance and efficiency of the company. When you decide to sell your business, you clear all your debts and the wealth left over after that process is your net worth. It is very important because if you decide to start a new business in another sector and you need a loan, the banks will analyze your creditworthiness by simply having a glimpse at your net worth. An impressive net worth will also attract buyers and they will have more confidence about the deal as the business has already been working fantastically.
- Decide whether to take help of a professional:
It is advisable for the business owner to get assistance from a broker when selling a company. The owner is an expert in running a business but not in selling it. Not hiring a broker can prove to be a mistake for the owner, as they might get into trouble by offering the deal to any fraudulent party or someone who is not worthy of running a business. If you have a business for sale in Nevada, you need to find a business broker who is aware of the marker conditions of Nevada. Would it be nice to save roughly 10 percent on a brokerage fee? Of course! But in many cases, the broker is able to add up to 15 to 20 percent to the selling price of the firm. Therefore it’s always advisable to hire a broker.
- Finding the right customers for your business:
Some businessmen are usually in a hurry to get rid of their business and hand it over to someone who isn’t capable and is unable to run the business efficiently. This usually happens because they are unable to find the right customers. Advertisement can surely help you get new genuine customers. Look into advertising in local newspapers. Even in the digital age, newspapers are a basic medium through which people are well informed.
- Taking care of your employees:
When you sell your business, your employees will have to be let go of, so either they’ll be transferred to work with the new owner or they’ll end their employment with the particular business.
So, if your employees are transferred to work with the new owner, you have to give them notice about the end of their employment with you. They’ll then have to enter into a new contract with the new owner. Clear all the dues and pay their salary before ending their employment.
- Prepare a contract:
When the business is sold, the solicitor goes through the contract to make sure that the contract doesn’t contain any false or fraudulent statement. Therefore, the contract should contain all the relevant information such as the assets that are transferred, related business liabilities, lease of the premises, and statements regarding what if any issues arise.