Using a professional business broker to buy or sell a business is a vital and necessary attribute towards your desired outcome. Because there is a lot of work involved in both buying or selling a business, the aid of a professional can help you ensure that every ‘i’ is dotted, and every ‘t’ is crossed. Moreover, business owners may not be fully aware of certain legalities, or have time to consider them, when it comes down to buying or selling; therefore, we’ve constructed three top tips that a business broker would recommend:
#1 Be Prepared…
One of the first things a broker might tell you is to be sure you’re ready to let the business go. If so, another part of preparedness is getting books and paperwork ready for the sale. Sometimes it takes a year or two before you can actually put the business up. Get a valuation of the business to know its true worth; a broker can certainly help you prepare-
– 3 years’ Profit and Loss Statements
– Federal Tax Returns
– List of Assets
– Lease or Franchise Agreements
– Inventories List
#2 Be Proactive…
Keep your business flowing, growing, and showing. This can only be accomplished by ensuring that operations are maintained and running smoothly, financial returns are either steady or increasing, and that facilities, equipment, and employees maintain a professional appearance; along with satisfactory and competent delivery of products and services. Brokers advise that remaining proactive, and keeping business running on an upswing, makes it more appealing to potential buyers and investors.
#3 Be Prudent…
It is important to be wise and realistic about the sale or purchase of a business. Know what you want out of the deal; as well as, if you will remain a part of the business, or if you will train others to continue on. Owners and buyers must be willing to negotiate in order to come to agreeable and lasting terms. Establishing connections and positive relationships in the process, is another great way to obtain a good sale. Everyone should be open and honest in handling legal issues and questionings. Business brokers can help in these areas, so that only the important and necessary information is disclosed. Once the sale is complete, owners should also be prudent with their profits.
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