Tips For Preparing Your San Diego Business For Sale
San Diego is in the top 10 cities for running a small business and small business revenue in 2019, so confidence in the city is high. This may make it a tempting time to sell your business. Even if you didn't start your business with an exit plan in place, it's never too late to take steps to prepare your business for sale. Early preparation can help the process go smoothly, and the right steps may lead to a higher offer, meaning more money for your after-business dreams.
Mental Preparation
Do some research about the process so that you're prepared for what comes next, and get ready for a long process. It can take 6-12 months to sell, including 2-3 months for finalizing the sale. Making sure you have realistic expectations from the start can help you see the process through.
Opinion of Value
A realistic opinion of value is an important first step. A LINK Broker can help with this; they are impartial and understand both the current market and the different methods of arriving at a value. Getting an accurate opinion of value is critical. You want a good return on the time and money you've invested building your business, but it's important not to price yourself out of the market.
Prepare the Paperwork
Prospective buyers are going to ask for legal and financial records of the last three years. If all of this is hidden under your bed or mixed in with thousands of other emails, it's time to get it organized. Having all the paperwork together can help the LINK broker form an opinion of value and prepare marketing materials. It also shows prospective buyers that your business is well-managed, and when you get to the due diligence stage, it can help the process go smoothly.
Stay Focused
Many business owners become caught up in their post-sale dream, which is a mistake. You need to ensure your business continues to grow, even as you prepare to sell. More profit equals a bigger offer, and this equals more money to spend on retirement plans or your next venture. Don’t make the mistake of mentally checking out while your business is in the process of being sold, as decreased sales or deferred maintenance can scare away a potential buyer.
Make Improvements
If you have a physical store, make sure it is clean! A fresh coat of paint or new shelving can help present your business in the best light, but for larger purchases, make sure you'll get a good return for your investment when the offers come in. Taking time to present your brand well online and in social media is always a good idea and can help boost your business's value.
Get Help
It's a good idea to get experts in to help you sell your business. Accountants and lawyers can get paperwork in order, while a Link business broker has the marketing expertise and a network of people looking to buy a business. While your team takes care of the selling, you can stay focused on running your business.
As all business owners know, prior planning prevents poor performance. Time spent preparing your business can lead to an efficient sales process and an offer that recognizes the value of your business. To schedule a free, confidential consultation, contact the LINK San Diego office today at 858-452-3000 or send an email to infosd@linkbusiness.com.