So you’re ready to sell your business, huh? Obviously, you’re going to want to get the most money possible for it. This is a long and lengthy process, and you want to make sure that the time put into it is well spent, right?
If you’ve ever thought about selling your business, then today’s post is for you! I recently sold my business (The Contract Shop®) and I’m telling you the down-n-dirty deets to make this process easier for you.
Today, we’re talking about how to price your business to sell — and how to increase the selling price with a few strategies.
You want to get the highest price you possibly can when selling your business, but to do that, your business needs to have value (as in, dollar value). You can’t expect to get a million bucks for a business that only brings in $20K in revenue per year.
To get a fair offer on your business, everything you make and everything you spend will be examined. Brokerages (or really any avenue you use to sell) will be looking to see if your profit is higher than what you spend. If you’re spending money on a lot of things (like conferences, contractors, software, etc.), it could pull down the overall value of your business because you don’t have as much “profit” coming in.
Buuuut please don’t take that as I’m telling you that you need to go fire all your contractors or employees either. They are pretty valuable to your business regardless of profit or value statements, and that’s just a shitty thing to do anyway.
However, you can evaluate all of your other expenses, like software you’re not using (do you really need Adobe AND Canva? Can you cut out your Microsft Subscription because Google is free?) to see if you could cut back.
Keeping your books clean just means keeping your finances in order, and keeping track of your expenses accurately. This will help you have a stronger track record and can make your business more attractive to potential buyers.
And if you can…hire a bookkeeper to do this for you (preferably as soon as you start toying with the idea of selling. Bookkeeping is a lot of work!).
This was one of the best decisions I ever made in my business. When it came time to sell The Contract Shop®, I didn’t have to run myself into the ground trying to sort out expense after expense. My bookkeeper already did all of that for me. Selling my business was way more straightforward that way!
A business brokerage is connected to the buyer world in a way you aren’t. There’s no way I would have been able to find all the offers I got on my own — and quality offers at that.
When thinking about the right buyer for your biz, you want to choose one who will not only pay the most for it, but also has the resources and expertise to take it to the next level.
Look at things like their industry experience, financial stability, and any future plans they may have for the business. After all, it’s something that you created from the ground up — just because it won’t be yours anymore doesn’t mean that it won’t hurt to see it flop.
I chose Empire Flippers and they were great to work with. And yup, that’s an affiliate code.
Using a business brokerage isn’t just good for finding the right buyer, it can also save you a lot of time, money, and energy. I dunno about you, but I’m not that experienced in business negotiations and paperwork. Quite frankly, I had no idea what tf I was doing.
But the people I worked with handled all the legal paperwork involved with the sale (big relief, even as an attorney myself) and led me through all the legal and financial requirements that go into selling a business. I know it was much less stressful than it could have been because I did it that way!
Selling a business is a game of negotiation. I didn’t just take the first offer given to me. I waited and sorted through them all to see which one would be best for the future of the Contract Shop®.
So, make sure you have a clear idea of what you want to get out of the sale and be willing to walk away from a deal if it doesn’t meet your expectations. Nothing will be perfect, but you don’t have to go with the first lead you get.
The goal is to get the most money for your business and set the new owner up for success — be willing to fight for it!
As you can imagine, there’s a lot that goes into selling a business — things I didn’t even know existed! It’s a lot of work, and there aren’t many resources out there dedicated to helping you figure it out.
If you’ve ever thought about selling your biz, or are just curious about what it’s like, then check out my playlist below! This entire series is dedicated to giving you a behind-the-scenes look at the process, plus some tips and best practices too!