The sale of your business is one of the most important decisions you will make in your life, so getting it right is critical. To achieve a good outcome and the results you seek, consider the following steps to sell your business successfully.
1. Get a qualified business valuationValuing your business accurately is essential if you don't want to risk losing money by setting the wrong price. Business owners who seek to save money by not getting a business valuation risk setting a sale price that is emotionally driven. If it’s too high it might turn off potential buyers, or if it’s unnecessarily low it will keep you from cashing out at full value.
2. Determine the current worth of the businessOnce a business valuation is complete, you can assess the gap that exists between what the business is worth, compared with current sale price expectations.
3. Develop a business improvement strategyThe valuation will provide a baseline value for the business and allow the owner to work with a business advisor to develop a strategy to improve its profitability and increase its value. You may choose to enact this before selling, or simply having a plan for growth can increase the business' value and attractiveness to buyers.
4. Get your paperwork in orderEnsure all record keeping is up to date, current financial statements are prepared and available to process, and make sure all tax lodgements and deadlines are up to date. A business that doesn’t have up to date financials available will be less attractive to prospective buyers and will result in delays in selling.
5. Show future & growth plansBusinesses that can present business and sales plans to show future opportunities for growth will attract more quality buyers.
6. Produce ForecastsBusinesses that have well designed cashflow and financial forecasts with supporting comments will provide assurance and reduce risk for buyers, and can add $$$$ to your sale price.
7. Document your business systemsHave a full and detailed procedures manual covering all aspects of the business, with documented systems for sales, operations, employment, health and safety. This makes handover easy, which will be appealing for potential buyers.
8. HR managementMake sure your employment contracts are up to date and get all staff entitlements up to date. You don’t want any horrible surprises if you discover a staff member is owed a substantial amount of holiday pay, especially since this burden is likely to turn away someone who may want to take over the business.
9. Finalise any legal issuesResolve any legal issues that may be current or pending. Buyers get very nervous if they discover any legal matters are unresolved.
10. Current Customer and supplier contractsHaving long term customer contracts in place will provide the buyer with confidence in your business and provide some security in terms of future income. Also, if a certain supplier is critical to the business operations, having a current secure supplier contract will reduce operational risk for buyers.
11. Check your LeaseEnsure your premises’ lease is up to date, with options signed and in place for the lease to be easily assigned to the new buyer without any complications – ask a lawyer if you are unsure.
12. Tax on saleEnsure that you identify the tax implications of sale and speak with your accountant about the way to structure the sale to minimise your tax.
13. Find the best place to sell your businessTraditionally brokers are used by owners to list and sell their business, but they can be expensive. The average business broker charges 5-12% of the sale price, resulting in $$$ commission being deducted from the proceeds on sale. Money paid to brokers can be used to pay for an advisor to prepare your business for sale, who can equally help you deliver on your sale price when you can choose to sell your business privately. A good private business sale site is No Agent Business (www.noagentbusiness.com.au), who offer people valuable assistance to sell their businesses privately. This means you won’t be liable for the commissions charged by Business Brokers and Real Estate Agents when selling or leasing your valuable assets. They also include an offer that If you don't sell your business through No Agent Business and decide to go with an agent they organise for you, they will give you back 100% of the fee you paid us, plus 10% for all your hassles! Yes, that's a 110% money back guarantee. Make this process stress free and enjoy life after your business sale.
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If you own a business and wish to sell in VIC, QLD, TAS, NSW, SA, NT or ACT, then listing on CommercialRealestate.com.au and SeekBusiness is highly recommended. They are two of the main portals we include in our business selling packages.
Pioneer in the for sale by owner industry since 1999
No Agent Business is a fully licensed Real Estate Agent/Business Broker and does not charge any commission for the real estate agent services that it offers. This applies in every State of Australia and all major cities such as Sydney, Brisbane, Melbourne, Perth, Adelaide and Hobart.
Ms. Kim Grinham Business Sold By Owner - 163 Graham Street Wonthaggi VIC Property ID : 18525
Outcome : Excellent
Rating : 5
Most of the interest in the sale business was through No Agent Business. I believe that we would not have sold if we hadn't listed with them. We had lots of enquiries with No Agent business and very few through local agents in our home town.
I would recommend using No Agent Business.
James Business Sold By Owner - Deer Park, Victoria Hi No Agent Property,
Your service was great. The business sold and there was a lot of interest which is essentially the main thing.
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If you're concerned about any of the legal and documentation side of selling your business or commercial property, we can point you in the right direction to get the right advice about what you should be doing. We'll make sure that you've got it all sorted and can help ensure you get a secure deal.
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