Please, Sell My Business! How to Sell a Business You Don't Want

Sell My Business

How to Sell a Business You Don’t Want?

Are you saying "Please, sell my business!"? Read this article to learn how to sell a business you don't want and get the most money possible.

Sell my business

You’ve spent blood, sweat, and tears into building your business and now you’re keen to sell it. As with any sale, your goal is to find the right buyer and to sell your business for maximum value.

But if you’re new to the process of selling a business, you may not know the best way to sell your business for maximum profit. Don’t worry, every new business owner has been there.

If you’re thinking ‘I want to sell my business’ then we’re here to help you. Here are our tips on selling a business to gain the best profit.

Determine What Your Business Is Worth

When selling your business, you first need to determine how much it’s worth before putting it on the market. Realistically, your business is worth as much as it will sell on the marketplace. But deciding on that price can be tricky.

Thankfully, there are various business valuation methods out there to help you. These differ from asset-based to future earnings approaches. However, to get the best results you should use more than one method.

The current market, economic trends, and what other similar companies have sold for recently also need to be considered.

Getting a professional business valuation is a must-do. While legally anyone can conduct a business valuation, a company valuation performed by a professional will be viewed more favorably by potential purchasers. What’s more, potential buyers are likely to request a professional business valuation before committing to purchase so this can save you time later.

Be Clear About What You're Selling

When making a business sale, you need to decide exactly what the assets of the company are and decide what you’re happy to sell. Consider which physical assets you’re selling and what other assets you have available to sell.

Selling a business often includes assets like goodwill, trademarks, client lists, as well as physical assets.

The value of such assets will depend on their quality. If your company is incorporated, you must also consider whether you’re going to sell the business as an asset sale. This is where you sell everything in the corporation, apart from the incorporated company itself.

Alternatively, you can go for a share sale. This is where you sell everything, including your incorporated company.

I Want to Sell My Business: Getting Professional Help

When you’re thinking ‘I want to sell my business, one of the best ways to help with the process is to seek out professional help.

Here at Biznexus, we can help. We help match business owners with the best business intermediaries to help you sell your company for the most profit, on optimal terms. The service is free for business owners, and our goal is to help increase entrepreneurs’ chances of having a positive experience of selling their business. To learn more about how we can help, check out our website.

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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.

5 Biggest Myths When Taking Out a Business Loan

5 Biggest Myths

When Taking Out a Business Loan

Are you thinking about taking out a business loan but you're worried you might be misinformed? Read this article to figure out what you need to know.

Taking out a business loan

Do you ever think that you’d like to start a business someday if only you had the money? Business loans are great for people looking to start huge corporations, but what about if you just want to buy a small business?

Loans like that aren’t available to people in your situation, right? Wrong, In fact, there are so many business loan options these days that anyone can find a loan to suit their needs. But there are still a lot of misconceptions about these loans floating around.

Read on to learn more about some of the biggest myths about taking out a business loan.

1. Go Big or Go Home

One of the biggest myths about business loans is that you have to take out a large amount of money. Many banks do prefer larger loans, but there are lots of microloan financing options available. The Small Business Association will even offer loans as small as $500 if you need some cash quickly.

2. Perfection Is Crucial

Having good credit does help improve your chances of getting a loan with good terms. But if your credit history isn’t flawless, you can still get a business loan. Smaller loans, in particular, tend to work well for people working on building a bad credit score back up.

3. It Takes Forever

In the old days, you’d have to spend days or weeks putting together a loan application and another few weeks or months to get the money. But today’s world moves faster, and business loans are no exception. You may be able to complete a loan in as little as an hour and get the money as soon as a few days later.

4. Collateral Is Important

Trying to offer collateral when you’re trying to start or grow a small business can be tricky. The whole idea is that you don’t have a lot of capital, to begin with. But there are some loan options today that don’t require any sort of collateral if you don’t have much you want to offer.

5. You Don’t Have Options

Many small business owners have the idea that when they go in to get a loan, there are fixed terms they’ll have to deal with. But lenders know that not every business is the same, and not every borrower’s needs are the same. They can adjust the terms of their loan to suit your business needs (within reason, of course).

Learn More About Taking out a Business Loan

Taking out a business loan can be a great way to give your business a boost when you need it. And in today’s financial world, you don’t have to settle for huge loans that require perfect credit and a ton of collateral. There are a ton of options open to you, so shop around and find the solution that works best for your business.

If you’d like to get help buying or selling a business, get in touch with us at BizNexus. We are here to help you manage entrepreneurship through acquisition. Explore our financing options for buying a business, and get started on your new venture today.

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How to Finance a Business Purchase With Fair to Poor Credit

Finance a Business Purchase

With Fair to Poor Credit

Do you want to finance a business but you've had some credit challenges? Read this article to learn how to finance a business purchase with fair to poor credit.

How to finance a business purchase

There are 30.2 million small businesses in the US. Many folks prefer to own businesses because it gives them the creativity and profitability they have always dreamed of.

If you have student loan debt or a business venture that failed in the past, you may have poor credit.

You may also, however, find yourself with the opportunity to purchase a business that would be a great fit for your skills and experience.

If you are wondering how to finance a business purchase with fair or poor credit, you are not without options. Here are some ways to finance the purchase of the successful business you have always hoped to own.

1. Check Over Your Credit Report

Your own credit may not be as bad as you think. There may be payments that were not recorded, so you can contact companies with proof of payments.

You can also get your score back up by paying down some debt gradually. This may involve getting a second job for a little while, or finding another way to supplement your income.

2. Meet With A Small Business Administration Counselor

You can make an appointment to present your entire plan to a Small Business Administration (SBA) counselor.

They can give you tips on how to improve your plan so it better suits what lenders are seeking. The lender will also already have existing relationships with SBA lenders.

When you visit your counselor, it is important to make your plan look as professional as possible. Demonstrate how your business has been profitable and why you are capable of running it. Highlight the profitability of the business you want to buy, as well as its future growth potential.

When applying for a loan from anywhere, you must fill out an application. Bringing supporting documentation and dressing professionally will also help you.

3. Get A Microloan

If you can't get a loan from a bank, look for investors within your network, as well as micro-lenders.

Microloans are specifically designed for those who can't get loans elsewhere, and the SBA guarantees them. The downside is that interest and fees are higher. There is also a credit limit of $50,000.

4. Get A Bad Credit Loan

Many banks give out bad credit loans. While they initially come with a higher interest rate and fees, many lenders will renegotiate if you are making your payments on time.

5. Borrow Against Your Home

If you are certain that the business you wish to purchase will be successful, you may be able to get a loan from a bank by using your house as collateral. Take out a second mortgage or take out a home equity line of credit.

6. Who You Know

Your family and friends won't ask to see your credit report if you can convince them your business will be successful. You can ask them for funding and talk about their involvement in the future of your business.

7. Government Financing

Some federal and state government programs will finance your business if you meet certain criteria. You may be a veteran or involved in certain types of research. Depending upon your business and situation, they may not even require repayment.

How to Finance A Business Purchase With Fair to Poor Credit

If you have found the company of your dreams, you may be wondering how to finance a business purchase even if your credit isn't great. With a little homework and the right connections, you might find yourself the owner of a profitable business in no time.

For more information on investing in businesses, read our blog today.

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5 Effective Ways for Financing a Business Purchase

Financing a Business Purchase

5 Effective Ways

Financing a business purchase can be challenging, but there are some options to help you make this purchase. Keep reading to learn what these options are.

Financing a business purchase

In the third quarter of 2015, the median sales price for a business sold was $185,000. Most people don't have that much cash on hand. 

This means financing a business purchase is the only option. But there are several ways to find finance to buy a business. 

Which one you choose often depends on your current financial situation and the type of business you're looking to buy. We want to help you make the right decision on how to make a successful small business acquisition. 

Keep reading as we list five effective ways to acquire financing to buy a business. 

1. Financing a Business Purchase With a Bank Loan

If you want to buy a business and are thinking of making the purchase with a bank loan, make sure the existing company has substantial assets. Also, you'll need to prove you have good credit and a proven track record in the industry.

Expect that trying to obtain a bank loan to be very difficult and time-consuming. 

2. SBA Loans

The Small Business Administration (SBA) also provides loans. The best option to buy a business is to apply for an SBA 7A loan. 

If approved, you can get a loan of up to $5 million dollars. However, to qualify for the loan you must have the following:

• Good credit

• Provide three years of tax information

• Provide personal finance information

• Show prior experience in the industry

You must also prove you can put 20% down. However, you can also find that extra 20% through seller financing. 

3. Seller Financing

Seller financing is another option. With this option, you ask the seller to provide financing in the form of a loan. 

Typically this loan is amortized of a period of time and you pay the loan back using the proceeds of the business. This is an easier method to obtain than traditional financing methods such as a bank. 

More Transparent

It's more flexible, can often be cheaper, and since the seller wants to be paid back, they will be more inclined to provide you with accurate financial documentation. 

However, don't expect a seller to finance more than anywhere between 30% to 60% of the business unless you come armed with additional assets and can make a large down-payment. 

4. A Leveraged Buyout

A leveraged buyout happens when the buyer acquires a company using a significant amount of borrowed money to buy the company. Often the assets of the company being bought are used as collateral for the loans such as:

• Equipment

• Real estate

• Inventory

The assets of the acquiring company can also be used. 

However, if things don't go as planned, it may have a largely negative impact on your rate of return. Your losses may also be maximized. 

5. Get Financing Online

You have options when it comes to finding an online source to get a loan. You can choose a business loan, personal loan, and even a HELOC (home equity line of credit). 

Shop around for the best interest rates. Also, not all lenders are willing to give money to buy a business. 

We Help With Financing

Financing a business purchase isn't always easy because not every lender wants to deal with the risk. We're different.

We want to help entrepreneurs buy and sell their businesses with as little effort as possible. And we can help you with financing. Click here to learn how. 

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The Pros and Cons of Buying an Existing Business

Buying an Existing Business

Here are the Pros and Cons

Are you thinking about buying a business? Learn about the pros and cons of buying an existing business before you move forward.

Buying existing businesses

A record number of businesses were sold in 2019. That number continues to trend upward from previous years as baby boomers seek to retire and millennials begin to realize there might be limited exit options for their would-be unicorns in a public market focused on profit….

The economy is still doing well. Most businesses that sell are financially healthy, with cash flow to pay off the acquisition price.

While buying an existing business definitely has its advantages, there are also a few downsides anyone looking to buy should be aware of. The more you understand the nuances of buying an existing business, the more successful you'll be. 

We want to help you understand the pros and cons of purchasing an existing business. Keep reading to learn more. 

Advantages of Buying an Existing Business

It's not easy to start your own business. Statistically speaking, most startup businesses shut their doors within five years. 

Which makes buying an already established business that's proven to be financially successful a smart move. The hard work has already taken place to get past liftoff and into the atmosphere of profitability.

Access to a Network of People

When you buy an existing business, you get access to an existing network of people who can help guide you and your business including:

• Loyal customers

• Vendors

• Suppliers

• Employees

Also, if the existing owner has established relationships with banks, printers, advertisers, and insurance companies, it's much easier than trying to embark on those relationships from scratch. 

Established Brand

Branding is an essential part of marketing. Without loyal customers, there is no viable business. 

Buying a small business with a well-established brand name makes it easier for you to reach out to attract new business. 

Fewer Financial Surprises

There's a lot of risks a new business owner takes. But when the seller already has everything in place, that means the business is already operating and pricing has already been established. 

There's less of a chance you'll get caught in a money pit because the seller should already have provided you with the financial documents. 

Also, the sale is structured so you can cover all your expenses including the debt service and your salary. 

The Disadvantages of Buying an Established Business

While the business may already be well-established, that doesn't mean a few changes may be necessary. It's also difficult to fully comprehend what changes are needed until you've already purchased the business. 

However, here are a few red flags to look out for:

• High employee turnover

• Outdated or unreliable equipment

• Unreliable suppliers

A business that carries existing debt or has cash flow issues also will mean there's hard work ahead of you to get back into the black. And it's not always easy to walk into an already established business and try to change the rules. 

The Brand May Be Established But Suffer from PR Issues

While it's great to buy a business with an already established brand name, if the company suffers from PR (public relations) issues, you're inheriting a potential disaster that is now your job to clean up. 

Even a new owner may not be enough to change the minds of unhappy former patrons. Make sure you buy a business with a positive reputation. 

A Cheap Business Isn't Necessarily a Good Thing

If a business seems inexpensive it's usually not a good thing. An expensive business means it's doing financially well and has a good reputation. 

A cheap business may mean it has a bad reputation or a good or service isn't performing well in the market. Always ask yourself if it's worth the money and the work you'll need to put in to ensure a company stays successful after you've bought it. 

Start Getting Matched With Acquisitions and Make Some Inquiries

The best way to get going on buying your first business is to start looking at opportunities and reach out to connect with the seller or the seller’s business broker if you’re serious about any specific opportunity. As a buyer, at no cost to you, you can set up your profile and acquisition preferences today on BizNexus and we’ll start showing you opportunities from our $1 billioin+ inventory platform that makes sense for you.

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What is the Best Franchise to Own: Tips for Making the Right Choice

What is the Best Franchise to Own?

Tips for Making the Right Choice

Are you thinking about buying a franchise? Are you wondering what is the best franchise to own? Keep reading to find out.

What is the best franchise to own?

Think about how many times per week you frequent a business that is a franchise. Do you stop for coffee at a Starbucks? Get gas and a drink for your commute at 7-ELeven? Get your haircut at a chain like SportClips? Grab lunch at Jersey Mike's or Chipotle? 

If you're already frequenting franchised businesses, why not think about purchasing your own? If you've been contemplating investing in a business but you're not sure what is the best franchise to own, you're in the right place.

Here are the top 4 hottest franchises for 2020. 

1. 7-Eleven

7-Eleven is the number one convenience store and 7-Elevens are going up everywhere! There are over 68,000 7-Elevens around the world, making it popular not only in the US, but in Japan, Thailand, and South Korea as well. 

If you're interested in franchising your own store, you'll have to go through 240 hours of on-the-job training and 24 hours of classroom training. Franchise owners get marketing support with ad templates, regional advertising, social media, SEO and web development, email marketing, and loyalty programs. 

The initial investment varies, based on location, and can range from less than $50,000 to more than $1 million. 

2. Jersey Mike's Subs

Did you know that Jersey Mike's is the fastest-growing sandwich chain in the country? Their plan is to have over 2,000 locations by 2020 and it has recently been named to Entrepreneur's Franchise 500 top 10 lists. 

The initial investment ranges from $237,000 and some change to $760,000+, but these numbers include pretty much everything that you need to get your franchise up and running. 

3. Dunkin'

Even though they dropped "Donuts" from their name, Dunkin' is still one of the best franchises to own. In the 4th quarter of 2018 alone, over 100 new Dunkin' locations were opened around the world, and you can find them in 32 different countries. 

The initial investment ranged considerably, from a low of less than $230,000 to upwards of $1.6 million. Franchisees do receive a lot of support, however, including training, help with site selection and construction, managing and operating the store, and marketing.  

4. The UPS Store

More than 84% of the country lives within 10 miles of a UPS store, making it a franchise easily accessible by nearly everyone. It's also the top franchise in the business services industry and has a 35-year history of franchising. 

If you haven't visited a UPS Store recently, it's more than just shipping packages! They sell packing supplies, have mailbox services, have copying and printing services, and will even take your Amazon return and package them up for return for you.  

The initial investment ranges from a low of around $178,000 to a high of $402,000. 

Want more Franchising 101 Research and Information?

Do your research and get proactive with current franchise owners, ask questions, go out and see possible site locations, and so on. These links will guide your way. Good Luck!

• The International Franchise Association: www.franchise.org

• The Business Resale Network: www.br-network.com

• The Census Bureau: www.census.gov

• The Service Corps of Retired Executives (SCORE): www.score.org

• Franchise Update Publications: www.Franchise-Update.com

• Entrepreneur: www.entrepreneur.com

• Franchise Times: www.franchisetimes.com

What Is the Best Franchise to Own? 4 To Consider

Now that you have an idea of what is the best franchise to own, you can start seriously thinking about investing in your future. If you're still unsure, use our franchise matching tool to see what might fit your budget, your location, and your needs. 

When you're ready to buy, get in touch with us. We can help you with the purchasing process.

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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

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!

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5 Tips on Financing the Purchase of an Existing Business

Purchasing an Existing Business?

Here are 5 tips to help you finance the acquisition

There are a number of methods you can use when financing the purchase of an existing business. Here are a few that we suggest you try.

Financing the purchase of an existing business

More businesses are being sold than ever before. In fact, a record number of small business owners are selling their companies. According to this data, the number of business listings increased by 8 percent from the prior quarter. 

In a world awash with excess capital and with demand for reliable cash flow returns on the rise, prices for existing businesses & assets have been on the rise.

Popular acquisition targets typically have reliable, recurring revenue and cash flow, with an established brand and loyal customer base. With prices continuing to trend up, you’ll need to have your ducks in a row before you decide on the best way to finance an acquisition.

Read on for a guide to financing the purchase of an existing business. Explore 5 tips for purchasing a business that is highly effective.

1. Apply for an SBA Loan

The United States Small Business Administration (SBA) is a great resource for entrepreneurs. They work with lenders across the nation to guarantee loans against default.

Lenders are willing to take on more financial risk due to the government’s backing. SBA loans offer more favorable terms and rates than conventional funding sources.

There are a number of different loan programs to apply for. The most popular are the 7(a), 504, and microloan programs.

2. Consider Seller Financing

In some deals, the seller is willing to finance a portion or all of the deal. The benefit to the seller is that they can turn a greater profit.

There are also a number of advantages to the buyer. Perhaps most important is the ease of access to capital.

Also, another benefit is the speed of the financing deal. Seller financing is proven to be a faster alternative than conventional loans.

3. Make a Sizable Down Payment

A significant down payment is an effective method for reducing company risk. Like purchasing any asset, a down payment improves your financial position in the company. It reduces the amount of interest that you will pay over the life of the loan.

For business acquisitions, a large down payment is required. While mortgages require 20 percent, a business purchase usually takes even more.

The more cash you bring to the table the better. Many small business owners use personal funds for a down payment. For larger acquisitions, the down payment may require multiple investors pooling their resources together.

4. Angel Investors

There are increasingly common scenarios today where wealthy investors, feeling flush after 10 years of public market gains and looking to diversify into something reliable & attractive going forward, are interested in financing entrepreneurship through acquisition (ETA) as a viable investment vehicle. If you can sell those types of investors on your personal “why” story and your credentials to run a business, this can be a great option if you can get access.

5. Getting Creative

To finalize a business purchase, sometimes you have to get creative. These cases may call for a leveraged buyout or assumption of debt.

In a leveraged buyout, you trade-off existing assets in lieu of capital. An assumption of debt means that you are acquiring the company’s liabilities as well as their assets.

A Recap of Financing the Purchase of an Existing Business

Starting a business from scratch is hard work and risky. Many entrepreneurs choose to purchase an existing business instead and fund their entrepreneurial efforts from the existing cash flows of an operational business.

This option allows an entrepreneur to acquire a proven business model. Entrepreneurs turn to methods like SBA or seller financing to close a deal. If you want to learn more about financing the purchase of an existing business, Login to get matched.

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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.

Embrace Your Entrepreneurial Spirit — Buy or Sell a Business in Boston

Buy or Sell a Business in Boston?

Embrace your entrepreneurial spirit

Entrepreneurship continues to expand in the post-Great Recession world. Businesses are being bought and sold at a rapid pace. And many entrepreneurs are using dedicated digital platforms to make it happen.

Getting Help with Your Goals

Specifically, entrepreneurs are working with organizations that not only have business listings for sale, but also, help them overcome their hesitancy about buying or selling. Although they have a great deal of confidence, some of these owners still have a nagging fear that things may not turn out as desired.

This can certainly be the case when selling a business. While you may want to move onto something else, you also want to get the best price possible for something in which you invested a significant amount of money and time.

The Science of Selling

While searching for a platform that offers business listings for sale in Boston, MA, you want assurances that the organization will maximize the list of potential buyers for your company. Today, much of this is done through advanced algorithms — the same ones that search engines use to produce the results you want. They use a mix of real data such as online reviews and historical transaction performance over the time you were running your business. Algorithms can also assess your unique website or blog hits as well as your interactions with customers.

Once all this data is compiled, it should result in a list of relevant brokers who can help you find the right business to buy or a buyer for the one you want to sell. This relieves a lot of pressure, so you can focus on the next stage of your life.

That’s what we do at BizNexus. Our goal is to connect you with the right people and maximize your potential to find your next profitable business or sell the one you have for a sizable profit. To learn more, visit us at Biznexus.com.

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Top Considerations When Buying a Business in Boston

Buying a Business in Boston?

Here are top considerations you don’t want to miss

Many people like the idea of owning their own business, but not everyone is cut out for starting one from the ground up. If this sounds like you, you may want to consider buying an existing business in the Boston area.

There are several perks to this particular option. The business will already have a customer base, you will have actual numbers to work with rather than estimates, and you may be able to obtain certain patents related to the business. Get started by considering the following issues.

Location

Think about whether you want a business that is in your community or if you are willing to move. You could also look into a business that isn't tied down to one specific location. The location where you choose to conduct your business will impact many variables, such as taxes, labor costs, and other financial points that could affect your bottom line.

Size

Would you like to own a large enterprise or would a small family business be more your style? When looking for local businesses for sale in Boston, be realistic. Large companies make more profits, but they also come at a higher cost and involve more stress.

Industry

Don’t choose an industry simply because you like the sound of it. Choose a business that deals with an industry you already have experience with. The industry you choose will determine factors such as how many hours you will work.

Once you know what size business you want, what type of industry you are looking for, and where you want it to be located, it is time to start shopping. A business broker can prescreen possible business options and help you find in Boston that are within your area of interest. Login to BizNexus by visiting its website at https://biznexus.com/ for help finding these local businesses for sale that are just right for you.

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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.

Tips on Selling Your Business With a Business Broker

Want to Sell Your Business?

Connect with the RIGHT intermediary and leverage their niche expertise

When the decision to sell a business is final, business sellers often try to do it alone to save themselves the cost of a commission (or because they don’t even know what a “business broker” is, which indicates a larger awareness issue in the industry…).

Today, business acquisition & sale markets are awash with high-tech platforms that claim to make selling a business less labor-intensive and stressful. At BizNexus, we don’t allow sellers to post directly on our platform, and we do that because we believe in the value a great intermediary can provide when it comes to vetting, pricing, and negotiating a unique transaction. If you’re a would-be seller thinking of going along, it’s best to understand the resources available to you to help make a successful transaction actually happen before you jump in on your own.

Data and Reviews

We’re big fans of people, -real people who absolutely should be involved in any company sale process. Use reviews to help you build your deal team. Lawyers, business brokers, CPAs…. It’s 2020 people, -if there’s no data on the interweb about a professional you intend to work with there might be something off, so be sure to check with references and verify, verify, verify before you sign any contract. When a business owner has a business for sale, the process can get sticky leading to a potential transaction close, and we strongly recommend having experienced, capable professionals on-call to help you get your transaction over the goal-line.

Finding the Right Marketplace to advertise a Business for sale

There are certain features to consider when it comes to finding the best marketplaces to advertise a business for sale. These include:

• Do you have clarity on who potential buyers actually are?

• Does the marketplace simply allow you to post a business for sale for a fee? Or is there a professional involved at some point in the process for valuation and listing?

• Is there any degree of confidentiality? Can you anonymize your information, location, etc., and still get in front of the right buyers?

An Online Site Based on People & Professionals

When the decision to sell a business is final, we recommend you try to get matched with the best intermediaries for you based on industry, location, deal size, and real-time transaction data. Check out BizNexus, and get matched up with your perfect business intermediary. We’re a platform for active business sellers and business brokerages active in the industry.

BizNexus - A Solution For Busy Entrepreneurs

If you’re busy running the day-to-day of your business, you might not have time to give the selling process the TLC it deserves. It’s a classic situation of not being able to focus on what’s important because you’re buried with everything urgent. BizNexus is a marketplace created for entrepreneurs, and it only takes a few seconds to get matched up with the best business broker for you, so give it a whirl if you want to get the ball rolling on setting yourself up for a great exit.

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PREPARING TO EXIT YOUR COMPANY

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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.

Why is Buying an Existing Business Better Than Starting From Scratch?

Start a Business

Think of buying one instead

If you want to become a business owner, it's tough to decide on whether buying an existing business or starting from scratch is better. Here's what we think.

Buying an existing business

Have you been thinking about starting your own business?

Do you know buying an existing business is sometimes more profitable than starting from scratch?

Entrepreneurship through acquisition is a current business trend. It is also one of the most exciting ways to begin your business empire.

When you are buying an established business that has cash flow, your entrepreneurship dreams are only a step away. But there are important questions to ask and ways to proceed that are vital to set in motion before you buy.

The questions are vital because their answers help you decide if you should proceed with buying or walk away to the next business on your to-do list.

Buying an Existing Business

When you buy an existing business, you are selecting an establishment that has already endured good times and maybe some bad times too. But it is still in business, and that is what is important to understand.

Businesses that produce income can be steady and solid. Bankers, investors, customers are all easier to attract and keep if you redevelop the existing business with smart moves and steadying ways.

But there are some important steps you need to take before you write your check to buy the business. 

Important Steps in Buying an Existing Business

It's important to know why they are selling the business. Sometimes the owners of the existing business want to move on to the next great thing in their lives. But their answer may tell you they are having legal and financial issues.

It may even reveal a pending lawsuit.

The business owners may have problems with vendors or employees. These issues are relevant facts you need to know for your business analysis and decision.

Determining the Price of the Business for Sale

Ask the current business owner how they determined the price of their business for sale. How the business owner determined their price is important due to the following:

1. If the business owners cannot substantiate their current asking prices through their financial records you have a decision to make. Also, you may negotiate a price reduction.

2. If they can substantiate their asking price through their financial records, make sure you are looking at the past two to three years.

The financial records of the existing business you might think shows dull but steady growth. Perhaps the financial records reveal it is more flashy with great financial ups and downs. You need to understand what works and doesn't work before you sign the dotted line and buy the business.

Statistics and Funding for Businesses for Sale

Every year, there are more than 500,000 businesses sold and bought. The number of businesses that are listed for sale each year is expected to go up as the baby boomer generation retires.

One of the most important things you need to ask yourself is how are you going to finance your small business purchase? There are great financial options in the market, but you have to know where to look.

Entrepreneurship Through Acquisition

You now know you are going to move forward with buying an existing business. It's important to find a small business that fits your life and your skill sets. If you manage your new business right, you can keep the businesses' old customers, vendors, employees, and more.

When all your questions have been answered, and your financing obtained, all that waits is implementing your unique business skills. Your extensive research, knowledge, and business skills will help you grow and develop the business of your dreams.

Business growth can lead to a business empire if you want. Log in and let's start building your business dream together.

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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.

How to Buy a Franchise: 5 Best Practices for Buying a New Franchise Opportunity

How to Buy a Franchise?

5 best practices for buying a new franchise opportunity

There's a lot that goes into investing in a new franchise. If you want to learn how to buy a franchise, check out some of these best practices.

How to buy a franchise

Wondering how to buy a franchise?

Trying to decide if a new franchise opportunity is a good choice for you?

If you're starting a new business, buying a franchise is one of the best options available. It can be less risky than starting completely from scratch.

As opposed to buying an established franchise opportunity, becoming a part of a new franchise can be even better in some ways. However, there are a lot of things you'll need to think about to ensure you're making the right choice.

Below we'll tell you about the 5 best practices for how to buy a franchise.

1. Research the Franchisor Extensively

When you're thinking about buying a new franchise opportunity, it's important that you do plenty of research on the franchisor to make sure they're worth your time, effort, and money.

You should find out everything you can about the franchisor's history and track record as well as the people behind the scenes. You should also find out what you can about the franchisor's financial well-being to ensure that they'll have enough capital to help with your growth.

You should do some digging online to find out more about a franchisor. You may also want to speak to some of the current franchise owners as well.

2. Ask Questions

When thinking about buying a franchise opportunity it's important that you feel open to ask questions. If you have any concerns, bring them up.

You'll want to speak plainly with the franchisor to find out exactly what you can expect from working with them. Ask as many questions as necessary to find out what you can about marketing methods, training tools, technology, operations, and provided support going forward.

3. Be Ready For Legalese

When thinking about joining a franchise, you should also be fully prepared for looking over the franchise disclosure document. You'll want to review it carefully to ensure that you understand exactly what your legal responsibilities and rights are.

If dissecting legal documents isn't your strong suit, you may want to hire a franchise attorney to help you look over it. While it will cost you to hire an attorney, it will be well worth it and can help you avoid big problems later on down the line.

4. Know Your Worth

One of the best practices for buying a new franchise opportunity is to remember that you have value. New franchisors don't hold all the chips and chances are that they need you just as much as you need them.

Because of this, you may have a bit more wiggle room when it comes to negotiating a franchise agreement and getting a deal that is right for you. New franchisors may be willing to work with you a bit more than an established franchise will, as long as they can still maintain the consistency of their franchise brand.

5. Understand Your Market

In addition to knowing everything you can about the franchisor, you also need to think carefully about the market at large.

Look at the trends locally and nationally and be realistic about whether you believe the franchise truly has a place in the marketplace. Look at your community as well as the economy and consider what your community's interests and needs are.

You need to be sure that the franchise you're considering will be appreciated. Don't just rely on wishful thinking or your own personal preferences when deciding to buy a new franchise.

How to Buy a Franchise With These Best Practices

If you're ready to be a business owner, buying a franchise can be a great place to start. However, while learning how to buy a franchise isn't hard, making a profitable choice is much more difficult. It's important that you remember these tips if you want to be confident that you're making the right decision with your purchase.

Ready to get started with buying a franchise? Click here to start looking for a new franchise opportunity now.

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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.

How to Make Your Business for Sale More Attractive to Buyers

How to Make Your Business for Sale More Attractive to Buyers?

Here's how to make your business for sale more attractive to buyers.

Now, more than ever, it's vital to ensure your business for sale is an appealing opportunity for potential buyers by considering these strategies.

Are you finally ready to sell your business?

Whether you started a business in recent years to sell it, or you’ve been attached to it for years, you’ll of course want to sell your company for the biggest profit.

To make your brand more attractive to prospective business buyers, there are several ways to make it more appealing. But where to start?

That’s where we come in to help. Here’s how to make your business for sale more attractive to buyers.

Boost Your Brand

If you’re wondering how to sell a business online, one of the best moves you can make is boosting your brand’s online presence.

Think about it – if you were considering buying a business online, what’s one of the first things you’d do?

You’d go straight to google and search it up, of course. And that’s exactly what your prospective buyers will do too.

Thankfully you get to control what they see. And as you can imagine, the better your brand appears online, the better you’ll be able to sell that brand.

However, if your brand’s online presence needs more work, there are several ways to improve.

At a minimum, your company should have an attractive logo, consistent branding, and a polished website.

Visibility is important too. Does your brand rank highly in Google search? If not, this may put buyers off and it’s worth making efforts to improve your search rankings.

Or perhaps your brand does appear in Google search, but in a negative way? If the first links that appear in the search results include scandalous headlines or scam reports surrounding your brand, then this is an issue.

In such cases, you need to make movements to have these removed. After all, a company that’s attractive to buyers is one that possesses integrity.

Buyers will also check up on a brand’s social media accounts, so make sure your company has these. The activity and following of these accounts are just as important too. Buyers are purchasing your customers, after all, so make sure they can see that you have some.

Promote Your Unique Selling Point

When it comes to selling a business, it’s all about promoting the unique features of your company.

What is your business good at? What makes it special? Whatever the answer, maximize it.

Maybe your company sells a niche product? Or perhaps your brand has a huge following? Or a superstar team?

Usually, a buyer will have one main reason why they’re interested in your business. Sure, there may be lots of features they find attractive but in most cases, there’s one standout quality.

Ready to Put Up Your Business For Sale?

Putting up your business for sale is usually a bittersweet experience. But while it's sad to bid farewell to a company you’ve spent so much time and work on, there’s the sweetness too. And that’s the profit you can make from it!

To truly reap the benefits of this sweetness, you’ll want to make your business as attractive as possible to buyers so you can sell it for the greatest profit.

So, remember to know your worth and take the time and effort to improve your brand’s online presence. You should also promote your selling point as much as you can.

We promise it will be worth it.

If you need help retailing your business, we can help you sell for the highest price. Learn how here.

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PREPARING TO EXIT YOUR COMPANY

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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.

New Franchise Opportunities: Choosing the Right One for You

New Franchise Opportunities

Choosing the right one for you.

With a plethora of advantages to starting a franchise, your only hurdle may be determining which new franchise opportunities to choose from.

New franchise opportunities

In 2017, there were a whopping 745,290 franchises in the United States.

Those with entrepreneurial minds who don't want to go out on a limb and create a completely new business may want to add theirs to the list. And if you're interested in new franchise opportunities, how do you choose which one is right for you?

In this blog post, we'll discuss how to choose the franchise you'll succeed with. Franchises are a better bet for investment due to the fact that they come with a well-known brand. While that's already on your side, your franchise also has a higher rate of success if you pick a franchise that works for you.

Read on for more tips and tricks for choosing the best franchise for you to invest in.

1. Choose a Brand You're Passionate About

You may see that a certain brand of franchises is booming at the moment, but they're selling something you don't really know much about. What's more, you may not even have an interest in what they're selling, but you see the opportunity as a way to make money.

Instead, resist the urge for a high turnover of profits immediately in order to invest in a franchise you have a passion for. You'll succeed in the long run if you're doing something you love, and working with a brand you can stand behind.

2. Buy a Franchise That Has Lots of Support for Its Business Owners

While you should never purchase a franchise not knowing anything about business, you should have a strong support system from corporate. Discuss whether they have a strong backing for their franchisees, and how much support they actually give them.

Don't go for a franchise that leaves business owners flailing and wondering what to do next without the hope of help.

3. Pick a Franchise with a Good Reputation Among Franchisees

When looking for your next business opportunity, you may have been crushed to find out that your favorite chain restaurant doesn't work well with franchisees. Or, you may have found out that they've had incidents in the past and many unhappy business owners.

Don't then decide to franchise with them because you're loyal to the brand. While you can still remain a consumer of the brand, you'll want to ensure that corporate works well with people like yourself.

4. Choose an Affordable Investment

Depending on which franchise you buy into, you'll have to choose a franchise opportunity that doesn't blow through your budget. As a business owner, you don't want to spend everything you've got on the franchise fee. You'll need to take this on board when choosing the right brand to work with.

Taking Advantage of New Franchise Opportunities

Opening up a franchise is a big decision, but it can be incredibly exciting, and you'll want as much information as possible when you're just beginning. Here are 8 things you should know before buying a franchise.

Check out BizNexus Blog, which is all about new franchise opportunities to help you make the leap from searching for an opportunity to being a business owner.

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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.

Most Profitable Business Industries in Demand

Most Profitable Business Industries in Demand

From the tech sector to pet care and beyond

From the tech sector to pet care and beyond, the exponential profit growth predicted makes these top business industries the highest in demand.

Are you interested in starting your own business? Forbes reported in October 2018 that 80% of small businesses fail within the first year. Don’t let this quash your entrepreneurial spirit.

One option to consider is buying an established business. This allows you to explore business industries and tap into a successful opportunity.

Continue reading to learn more about making a profitable business investment.

Considerations When Buying a Business

When considering buying a business, it’s important to ask questions. Why is the business for sale? Are industry outlooks rising or falling?

It’s important to know about the business’s debt. Debts can include liens, writing off bad debts, and past due accounts. Are there any lawsuits historically or ongoing?

Does the company have current contracts, and does it only operate through contracts? Is there zoning or other industries regulations you should know about?

Look into the business’s target market. Is this location providing a stable, growing, or shrinking buyer pool? Does the company have a diverse customer base or only a few key clients?

If the company owns the intellectual property, proprietary methods, or exclusive products, will the ownership transfer? Can you assume any leases or mortgages held by the company? How many employees currently work for the company and are they unionized?

An attorney and accountant can provide an in-depth investigation before you buy.

Profitable Business Industries to Explore

Buying a profitable business allows you to reap the benefits of the previous owner’s work in starting the company. Here are some industries with positive growth outlooks.

Pet Care Market

The Pet Care Market Report shows a predicted positive market growth. The compound annual growth rate (CAGR) is expected to be 5.4% between 2019 and 2025 worldwide.

This comprehensive study looked at market drivers and restraints, opportunities, and product demands. It also examined the market size, forecasts, and trends.

Identified market drivers include:

• Customer’s humanization of pets

• Increasing pet adoption rates

• Increased e-commerce for pet care products and service sites

The high price for pet care merchandise and services turns some customers away. This may be a market restraint in low-income areas.

Many customers now want “natural” pet products. Many people feel overextended with work and family commitments. They're showing more interest in pet care services and represent a market opportunity.

Remodeling Industry

The global remodeling market was valued at 3 trillion US dollars in 2017. The CAGR is expected to increase by 4% between 2018 and 2024.

The heightened focus on energy efficiency has driven the development of new technology. Consumers are remodeling to become more energy-efficient and decrease long-term costs.

Individuals also remodel for trendy designs, more durable materials, and increased security. Many customers have suffered a loss due to natural disasters. Employing new technologies that make homes and businesses more disaster-resistant makes customers feel secure.

Tech Industry

Technology is now part of our work and home life. New innovations and solutions will continue in this growing industry.

When considering the global economic trends in tech spending, Forrester reported mixed reviews. The weakening global economy leads economists to predicted a fall from 5% to 3.8% in tech spending by 2020.

However, positive trends are forecast for the U.S. tech industry’s growth. Forrester states that more than 2/5 of tech dollars worldwide go to U.S. companies.

The Forrester report projects consumer spending to reach $1.46 trillion in 2019. This represents a growth rate of 6.3% compared to the global rate of 3.3%.

Are You Interested in Buying a Business?

If you are ready to invest in established business industries, we have the resources you need. Our company provides a list of businesses for sale.

Before placing a business on our list, it must be fully vetted. Professional intermediaries examine each company to ensure we are offering valuable investments.

Our purchase price for listed businesses is comparable to other similar companies on the market. Professional business brokers or accountants provide the price range for each listing.

Continue looking through our site today for businesses or franchises that interest you.

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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.

5 Best Practices For Preparing Your Business For Sale

Preparing Your Business For Sale?

Here are five best practices you don’t want to miss out.

Are you ready to put your business up for sale? Here are some best practices we recommend you use to properly prepare your business for the sale.

Business for sale

When you have a business for sale, you need to be certain that you are leaving no stone unturned when it comes to the details. 

In addition to figuring out exactly why you want to sell, you'll need to cover your legal bases and come up with a strategy that works. This will help you fetch the biggest price, while also getting help with negotiating the deal.

Follow these tips so you can prepare your business for sale.

1. Get a Thorough and Up to Date Valuation

For starters, you'll need to get a proper business valuation. During a valuation, professionals that understand the market will take an objective look at your company to see how much it is worth.

They will look into all matters of the business, including your cash flow, debt, future growth potential, and other variables.

When your business has been valued, you will know what kind of sell price the market dictates and how much you can stand to earn. Having this report will also give you leverage and clarity when you're speaking to buyers.

Start to put together documentation for your business well in advance so that you can show clean, accurate records of your revenue, budgets, and other important matters. 

2. Understand Completely Why You Want to Sell

Aside from financial implications, you need to know exactly why you intend to sell the business.

For some, it may simply be time for retirement, and selling the company can give you plenty of liquidity. You may also be at a point where cutting your losses and selling a majority of your company in an acquisition might make good sense.

Your reason for selling will help you choose which strategy can work best for you.

3. Carefully Vet Your Prospective Buyers

In addition to the sales price, you need to know who you're selling the company to.

Work with a business broker so that you can research every buyer's background. Finding a broker is crucial because studies show that only 20 to 30 percent of companies ever even find a buyer. 

When you are seeking a buyer, move as carefully as possible so that your company lands in good hands, and at a good price.

4. Have a Plan in Place For the Transition

You need to have a solid exit strategy in place so that you can comfortably transition ownership and management.

When you have a plan, you're better able to choose a successor and make sure the company is in good hands once the sale goes through. It will protect the brand moving forward, and any future equity you might retain in the company.

5. Get Some Marketing Help

Your first two priorities should be to get legal help to know exactly where you stand and making a point to stay silent on it until the time is right for you to share terms with the public.

Once you are ready to announce to the public, make sure that you have a marketing team in place to help you communicate your message.

Follow the Right Tips When You Have a Business For Sale

When you have a business for sale, these are the tips that you need to keep in mind. It will help you get the best deal while protecting your interests.

Get in touch to set up a free consultation for our business sale and acquisition advice.

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PREPARING TO EXIT YOUR COMPANY

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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.

Spend Money to Make It: Financing Options for Buying a Business

Want To Buy A Business?

Financing Options For Buying A Business

If you've found the business you want to purchase, but aren't sure how to pay for it then this guide is for you. Keep reading to get the money you need.

Financing options for buying a business:

It doesn't matter if you're a solopreneur or a budding business owner who will employ hundreds. Starting a business requires capital. 

On average in the United States, it costs a whopping $30,000 to start a small business from scratch. That's averaging out the big guys with the little guys. You can imagine how much some entrepreneurs might be risking on their startups.

If you're unsure how much it will cost to start your business, you can check the estimated cost of your startup with Entrepreneur.com's calculator tool. There's more to consider than you might think.

Once you know how much you need, how are you going to get the money? Like dad says, "money doesn't grow on trees." Let's explore some financing options for buying a business and get you on your way to success.

Angel Investors

If you can snag an angel investor, you're in great hands. These guys know the risk of a budding startup and are willing to take it. They typically own more than $1M in assets which affords wriggle room for more risky investments.

The biggest downside to an angel investor is their need for even more detailed plans. You need to convince them of your credibility. Just because they are willing to take risks doesn't mean they're wanting to throw their money in a hole.

Do your research. Gather competition analysis, create detailed sales and marketing plans. Essentially, show your expertise in your market. 

Your idea needs longevity. If you're just sniffing out a trend but don't know how your product or service will fare in the long run, you won't attract an angel investor.

Lastly, be passionate. If you truly believe in your vision, that's infectious. If you've done your research and your idea has a long half-life, go all-in. Your ardent enthusiasm will help lubricate their pockets.

Micro-lending

If you've ruined your credit on previous passion projects, you may not be able to get a traditional loan. If you really think your business will take off, you might try a microloan. 

Micro-lenders are another group of risk-takers. But the return on their risk is higher. They charge a higher interest than a typical loan. 

How much higher? You could see APR as high as 30% in some cases, although that's rare. No need for collateral either which balances out the high interest rates.

One such example of micro-lending is peer-to-peer lending. Cutting out the gatekeepers gives more people access to small business funds than traditional means provide. 

A few examples of P2P lending companies: 

• Upstart: a group of ex-Googlers started a platform that judges borrowers not on FICO score but on education, academic performance, and work history.

• Funding Circle: After the founder's loan was rejected for the 96th time, they created Funding Circle for U.S. and U.K. small business owners.

• Prosper Marketplace, Inc.: This is the original U.S. P2P marketplace. It now serves over 800,000 people.

A Few Other Financing Options for Buying a Business

There are a few more financing options for buying a business outside of traditional loans from either the government or the bank. Self-funding is one of them. Tap into your 401ks, use a credit card if you have a large credit reserve, or start a crowdfunding campaign (that last needs a previously existing fan base or really great marketing). 

If you're ready to get financed, let us know. We'll show you how it's done. 

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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.

How to Choose a Business Broker to Sell Your Business

Finding a Business Broker is Easy

Pick the most qualified is hard. Here is how to choose a business broker to sell your business

Do you think the time has come to sell your business?

If you believe that is the right move, you will need a reliable business broker. They are not easy to find nowadays, so take a look at some tips that will assist you in choosing the right agent for the sale.

Make Sure They Are Qualified

The first thing you want to ensure is that you will be doing business with someone who has the necessary skills. That means you need a broker who has the necessary licenses and qualifications.

Additionally, you may ask them whether they belong to an association or another professional organization in their niche.

Ask About Their Experience

It is not only about selling your company but also about putting it in the right hands. That is why you need an experienced broker with plenty of archived transactions.

Feel free to ask them about their experience across various industries. It is always wise to ask about the details of the latest transactions. Ask them how long it took them to close the deal, and whether you can talk to their past clients as a reference.

Ask Them About Selling Strategies

When meeting with the broker, they should tell you more about how they do things. That includes the strategies they use to advertise your business. It may include placing online advertisements on website marketplaces, as well as sharing on social media, or using contacts to find a potential buyer.

The best brokers out there mix all of these methods to find someone to purchase your business quickly. Additionally, they will make sure to screen the interested parties, and only meet you with serious buyers.

No Upfront Payments

When choosing a broker, you should be wary of those that are looking for upfront payments. The way agents do business these days is that they take a fee from the successful sale. You shouldn’t pay anything upfront as there is no guarantee that they can close the deal.

It is also wise to agree on the fee before you start the selling process. We understand that you want to save as much money as possible, which is why you may not go for the broker that asks the highest fee. However, pay attention to small charges, too.

Brokers often lower the price when they have too many companies to sell, and they don’t genuinely care whether they will successfully sell your business.

Agree on the Selling Price

A broker can tell you an estimated price based on his experience and skills. However, you should do your research regarding different valuation techniques. You can even try to find a business with similar characteristics to yours and see its selling price. That will be an excellent indicator of the cost you should go for when putting your company up for sale.

The important thing is to ensure that the broker will honor the deal. You may agree on the lowest and highest acceptable prices so that they have wiggling room. However, it is mandatory to specify that they won’t go below the lowest cost only to finalize the sale.

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PREPARING TO EXIT YOUR COMPANY

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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.

5 Ways on How to Exit/Sell Your Business Quickly

Sell Your Business Quickly

Here are 5 ways to sell or exit your business quickly

Exit or Sell Your Business Quickly

You had a good run with your company and plenty of success. However, it seems that you are not ready to stick around anymore. Here are some of the ways how you can exit your business smoothly, but make sure to leave the company in safe hands.

Find an Interested Buyer

If you set your mind on selling the company, you should start looking for interested buyers. Keep in mind that this process may require a bit of time and patience.

Here are some things that you can do to prepare your company for sale:

• Make sure that the business is profitable as it is easier to sell a company that guarantees a steady profit.

• Call your accountant and review the finances. Make sure that there are no issues, and everything is clean.

• Prepare a report with revenues and expenses over the last year. You can even go and prepare a financial projection for the upcoming period.

You can put up your business for sale in an online marketplace, or spread the word among the people you know in your industry. Depending on the attractiveness of your company, interested buyers should appear soon.

Offer the Business to Existing Staff

An alternative way of selling the company can be offering it to the existing staff. You may have managers, accountants, and other people working for you.

Ask them if they would be interested in taking over the business full-time because you want to exit. If they have the necessary resources and desire to buy you out, they will respond positively to your offer. That is a great way of selling the company, but ensuring that it is in the hands of someone who knows it inside and out.

Pass the Company to a Family Member or a Friend

If you think it is time for the next chapter in your career, how about offering the current company to a family member or friend? Find someone in your surroundings who is capable of doing a good job and maintaining a profitable business. If you believe they are the right choice, go ahead and pass the company to them, or hire them as CEOs while you remain the owner formally.

Find a Business Partner

If you can’t find a buyer to purchase your business, how about finding a partner? That may mean you won’t exit the company completely, but the partner may take over the areas you don’t want to handle anymore.

That is a great way to remain in the business while finding a new dose of motivation. Who knows, that may be the boost you need to take the company to the next level.

Initial Public Offering

While this may be an enticing option, keep in mind your company needs to be attractive enough for the public. Believe it or not, less than 0.01% of US companies are public. If you estimate that this can be the right move, it may be an excellent way to earn a lot of money.

Liquidation and Bankruptcy

Finally, you can also go with liquidation or bankruptcy. However, keep in mind that this means you will not only exit, but also close the business. That is why it is important to assess all your options and use this one as a final resort.

BizNexus -Learn More From Our YouTube Playlist:

PREPARING TO EXIT YOUR COMPANY

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.