ENTREPRENEURSHIP THROUGH ACQUISITION
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SELL With Confidence - Exit strategies For Beginners
Selling your business is exciting. Stop worrying and start planning. With the proper preparation, you can seamlessly exit your business with confidence.
Position your business for sale
We go over strategies for beginners. Sell your business with confidence.
5 Tips to start planning your business exit strategy:
Get your paperwork ready
Keep growing your business and increase revenue
Keep the sale confidential
Find a certified business intermediary
Never too late to start positioning your business for sale
SELL With Confidence- How to Take the Worrying out of a Business Exit Strategies For Beginners
The truth is, bidding farewell to an asset of yours is tough. Blood, sweat, and tears have likely laid the grounds for your success. It goes without saying, knowing how to exit makes the world of a difference.
Proper Record Keeping is Crucial
Record keeping is a must. Too many unknowns can trigger significant red flags to a prospective buyer. You’ll want to make sure all business information and records are clear and organized. Going into a deal blind does not lend itself to a done deal. If you haven’t already, begin carefully organizing important documents. Whomever the prospective buyer is, he/she will want to take a closer look. Stay ahead of the sale by making all relevant business information readily available upon request.
General List of Documents to Have and to Hold
Invoices
Confidentiality Agreements
Vendor Agreements
Partnership Agreements
Financial Statements
Discretionary earnings & cash flow
Keep Your Revenue Up
Those planning to sell often make the common mistake of selling when revenue is down. There are critics out there who will say selling when sales are down is the smart thing. One size does not fit all in business. Remember, you will have to disclose financial statements to the prospective buyer. You will need to supply a valid reason why you’re selling, especially when it’s been made clear your margins are down. Most prospective buyers want to see a strong cash flow. So, just as you entered into business for your ROI so too will the prospect. Not to mention, higher numbers could also mean higher business valuation. Two things to always keep in mind
Recurring Revenue
Growth Potential
It’s OK to Go Under the Radar Until the Deal is Finalized
Moreover, don’t leave your business before you actually sell it. If there’s anything that will hurt your bottom line more, it’s the mindset that it’s over before it’s over. It’s much safer and more professional to carry on with your day-to-day operations as you did on day one. Your employees don’t need to stress about their job security and before a deal is finalized, you don’t want to jeopardize the empire you built.
Find The Right Business Broker
For anyone wanting to sell a business, hiring the right broker on your side is the difference between a successful sale and failure. You want an individual who understands your goals and sets the bar on delivering exactly that. Business brokers represent you and your business, so finding the right one is important. BizNexus instantly connects you to a business broker in your area and niche, taking the headaches out of searching; saving time and money.
It’s Never Too Early to Start Planning for a Sale
Undoubtedly, it’s never too early to start organizing the “back office” and putting your business puzzle pieces together. The most seamless deals happen when the seller has their ducks in a row and the buyer is provided all of the details to allow them to feel comfortable giving that final handshake. The best way to ensure a positive experience, when you are ready to sell, is to plan. When you are ready to sell, BizNexus can help. BizNexus instantly connects you to prospects and brokers in your industry. Don’t waste your time and energy. Put Biznexus to work for you. We’ll make sure you get that handshake.
Position your business for sale today to access active business deals.
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PREPARING TO EXIT YOUR COMPANY
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Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
Why There's No Better Time Than Now to Buy a Business
So, if you’re thinking about buying a business, you’ve likely considered the risks and the rewards.
Buy a Business
There is no better time to acquire a business more than now.
So, if you’re thinking about buying a business, you’ve likely considered the risks and the rewards.
What you might have also questioned, however, is the timing. Before you walk away from closing a deal, let us outline why there’s no better time than now to buy a business. Here’s why:
Valuation
More businesses have sold in 2021 than in previous years. This is because recent market trends have shown the economy rebounding. More buyers are looking to sell, given the increased valuation. As a result, you have more room to negotiate a price you can "deal" with as a buyer. Private and public companies continue to grow in this market, increasing demand for profitable companies.
Business Availability
Additionally, business owners in 2020 took time to rethink their life aspirations. Many, chose to list their business for sale to retire and spend more time with their family. The ease of virtual business deals increased significantly over the past two years. Business listings that solely existed outside of the “www” decided to make their listings available online. Over 440 thousand businesses were started in 2021. There are several businesses for sale, but when it comes to investing in the right one, BizNexus has you covered.
Financial Support
Moreover, from personal banking, VCs, partnerships, angels, crowdfunding, grants, and more, there are many ways to obtain the funds needed to buy a business. Be careful, you want to choose the option that best fits your needs.
BizNexus helps you find a business for sale that’s right for you.
Whether you’re looking to buy a business to diversify your portfolio or a first-time business extraordinaire, BizNexus can help you get started!
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BUSINESS ACQUISITION
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THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
Factors That Influence the Business Valuation Formula
When estimating the value of your company, there are a myriad of key factors that can substantially impact the business valuation formula.
factors That Influence the Business Valuation Formula
To truly gain a profit, though, you must fully understand the value of your business.
When estimating the value of your company, there is a myriad of key factors that can substantially impact the business valuation formula.
Business valuation formula
What if a single error ruined the biggest sale of your life?
Many entrepreneurs work hard every day to turn their business into a success. The ultimate goal is typically to sell their successful business and reap a significant profit.
To truly gain a profit, though, you must fully understand the value of your business. And that means understanding what actually goes into a proper business valuation.
Wondering which factors impact your business valuation? Keep reading to find out!
Room to Grow
When someone buys your business, they are not buying what it currently is. Instead, they are buying what it has the potential to become.
It is important for your business to have growth prospects and opportunities for easy expansion. These help boost your brand in the here and now while showcasing your full potential to prospective buyers, especially if your company is young.
This is why analytics should be at the heart of any growing business. You can have your finger on the pulse of emerging trends and tailor your business to changing demographics and tastes.
Financial Performance
Growth potential is only one part of the valuation formula. Potential buyers are also interested in your past financial performance.
Put simply, it's tough to project future potential if your business has been bleeding money. Conversely, if you've steadily turned a profit for the past 3 years or so, your business will seem like a stable and steady investment.
Ultimately, this is why it makes sense to try to sell your business when it is at its peak performance and you have the financial records to prove it.
The Competition
A buyer inherits more than your future prospects when they buy your business. They also inherit all of your competition.
Make no mistake: buyers want to know what your competitors are like. This includes both the size of the competition and their overall numbers.
For example, if your market segment has a handful of large competitors, that can be a bad sign. It means that a buyer may have an uphill climb against well-funded and well-established competition.
If the segment has mostly smaller competitors, though, this can be a good sign. It means that these smaller businesses will be easier to take on as the business grows.
Business Location
Certain parts of the business valuation formula are set in stone. For example, the business location is just as important as ever.
A business designed for hip, urban millennials may not be a hot seller if you're located in a rural area. And even if the business is a perfect fit for the area, a buyer will pay special attention to rental costs and other overhead expenses.
No matter the business, an affordable location with easy customer access will always be highly valued.
Business Valuation Formula: Your Future Awaits
Now you know the most important aspects of the business valuation formula. But do you know who can help you sell your business?
We specialize in every aspect of business sales. If you want to see how we can electrify your sales chances, try out our BizNexus service today!
BizNexus -Learn More From Our YouTube Playlist:
PREPARING TO EXIT YOUR COMPAN
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.