02 Aug Selling a Home Based Business: What You Need to Know
Selling a home business is like selling any other type of company. Your business has a value that can likely be determined. You’ll want to find that out early in the process. That stated, there are aspects of selling a home business that differ. Let’s explore what you need to know when it comes time to sell your home based business!
The Realities of Selling
Before you begin the process of selling your business, it is vital that you understand that selling a business is often a laborious and time consuming endeavor. You may get lucky and sell your business the first week it is up for sale, but you certainly shouldn’t expect rapid results. Selling almost any business takes time. Sometimes selling a home based business can take a little longer.
What you feel your business is worth, what an appraiser states that it is worth and what the market will bear are all three separate and distinct entities. In order to successfully sell, you’ll want to have a thorough and accurate appraisal of your business performed.
Organize All Financial Documents
Regardless of the size of your business, you’ll want to collect your business and financial documents and statements in a coherent, presentable and easily understood format. If someone is going to buy your business, then he or she will logically want to see your taxes, various records and more. Being a home based business and even a small home based business, does not negate the need for the proper organization and presentation of financial documents.
A savvy buyer will thoroughly investigate and explore your business. Being honest from the very beginning will help build a solid working relationship between you and a prospective buyer.
Consider Trademarks, Business Names, Logos and More
Trademarks, business names and logos are all excellent ways to add value to your business. Other important similar intellectual property includes designs and blueprints. Such intellectual property works do show that your business is indeed a real business with real assets.
Prove Your Business Can Operate without You
It is quite common for a home business to be owner dependent, meaning that the business needs the owner in order to function properly. Of course, this could be a big red flag for any potential buyer. It is on you as the seller to prove that your home based business can operate without your exact skills and experience. Be sure to provide an operation’s manual, blueprint or guide for a buyer so he or she can take over the reins.
Are You Really Ready to Sell?
Many home business owners begin to sell only to realize that they are not emotionally or financially ready to take the plunge. Step back and verify that you are indeed ready to sell before beginning the process.
Finally, invest the time and effort to work closely with a business broker. A business broker brings a world of experience and expertise to the process of selling a business. Selling a business comes with a range of potential pitfalls. But working with a business broker can help you avoid numerous headaches and mistakes.
Copyright: Strategic Business Brokers Group