How Can I Sell My Small Business Fast?

Selling a small business is a complex process that requires the help of an attorney, accountant and/or broker. The success of the sale depends on a number of factors, including the reason for the sale and the timing of the transaction. There are also a few things you can do to ensure your small business will be sold for the most amount of money possible.

Start early.

The longer you wait to sell your small business, the more time it will take to complete the sale. Having an organized plan, which includes a realistic asking price, will speed up the sales process and increase your chances of finding a buyer who is willing to pay for your business.

Remove redundancies and streamline processes

A big draw to potential buyers is a business that is simple, well-run and profitable. Businesses that are too complicated with lots of manual work can make it difficult for a new owner to keep up with the daily operations, especially if they have limited experience with the industry.

Optimize financials

Having a strong accounting system is a must for small businesses. Having all of your books in order, and having your business’s income and expenses properly accounted for will go a long way toward securing an accurate valuation of the company.

Be ready to provide financial statements and tax returns for the past three years. This information is necessary for a prospective buyer to understand the health of your business.

Hire an appraiser

It is important to hire an appraiser to determine the value of your business, as this is the only way you can be sure that a buyer is paying the correct amount for your company. An appraiser can look at the property, equipment and inventory to determine the worth of the company.

Prepare for an appraisal by creating a thorough business financial review with your accountant. This will include your business’s financial statements, tax returns and any other documentation of the business’s day-to-day operations.

Create a packet for the potential buyer that includes these documents and an executive summary of your business. This can be a great way to speed up the sale by reducing the time needed for a potential buyer to get all the information they need from you.

Resolve disputes, legal issues and any other potential obstacles that may slow the sale down before they arise. It is best to resolve these issues ahead of time so that you can focus on presenting the company in its best light.

Avoiding these mistakes will also help you sell your business faster and for the highest amount of money possible.

Doing so will give you the peace of mind that you are making a sound decision and that your business is in the best possible shape to be sold.

Identify the reasons why you are selling your business

The most common reason for selling a small business is to retire. This usually involves the entrepreneur in their 60s or 70s, who has built up their business over many years. They are now able to spend more time on family and other interests, or they want to move on to a new venture.