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What can I do if I cannot sell my business?

Guest post by: Andrew Rogerson

Article Overview: There are many things you can do if you cannot sell your business. This article outlines a few, like selling any excess items for cash on eBay or Craistlist, selling your business with assets in place or getting an equipment appraisal to value your assets. All of these and more are options if you find you cannot sell your business.

What can I do if I cannot sell my business?

The current recession in 2008 and 2009 is marked by how low the economy has gone, the increase in unemployment but most frustrating of all, how long it has taken before the "green shoots" appear. If your business is struggling and you think your only option is to close the door and hand the keys back to the landlord, here are some things to consider. If the business has excess fixtures, furniture and equipment, turn those items into cash by selling them. There are plenty of options to selling the goods including eBay and Craigslist. Make sure what is being sold is as presentable as possible but again, get some cash into the business and move unwanted items. This could include vehicles and real estate and other excess items. Hopefully the business has a current list of fixtures, furniture and equipment. If a list doesn't exist, there is your starting point as you may be surprised what you have stored away.

After the above has been played out as much as possible and the motivation is still not strong enough to keep the business open, it may be worthwhile considering selling the business with the assets that are in place and needed to run the business. For example, if the business is a restaurant or has a lot of assets built in such as a manufacturing plant, there may be value in selling the business on an "as is" basis to a buyer who will take what you have, bring some fresh capital and enthusiasm and move forward with what you have. If your business owes money to a landlord, this may also be a method to "pay" the landlord and get out of your lease.

If this is an option that makes sense to you, your best way of handling this situation is by getting a third party valuation on the machinery and equipment. A third party appraiser who is properly trained and certified can you give a written report showing the total value of the assets. You can then use this report to negotiate with other parties and settle some or all liabilities. The appraisal method used may be Fair Market Value but it could also be Fair Market Value In Continued Use. Fair Market Value In Continued Use recognizes that the equipment may have shipping costs to get to the business, may have expert labor to install and get the equipment operational, and to remove and transport the item would incur costs thereby affecting its value.

As the saying goes - beauty is in the eye of the beholder. Where assets of a business are concerned, such as inventory, machinery and equipment, prices fluctuate based on supply and demand. If the supply and demand gets too far out of balance then prices move accordingly. That is, if the supply increases it means that prices decrease and vice versa. This is influenced by one final component and that is time. If the seller wants to move quickly then the price will go down. If the seller is in no hurry to sell and the buyer wants to move quickly, the price will go up.

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Article Tags: Andrew Rogerson, business, Business broker Sacramento, business escrow, business for sale, business plan, due diligence, exit plan, franchise, franchise for sale, Murphy Business and Financial Sacramento, Sacramento business broker, Sacramento business ownership, sell a business, Sell a business, succession planning



Related Forum Posts
Selling my business.... - I am looking to sell my business. It is a profitable business but I want to get out because I am burnt out after 7 years(since I was 17)......... I am almost ready to sell(making the proper preparations)..But I'm unsure about my lease with the landlord. He doesnt seem to want to resign.. I am worried about how marketable my business is with only 2.5 years on the lease... When I sell my business, does my landlord have to resign with whoever my buyer is? Thanks in advance... G.
Re: Domains - Hey David, Why do you want to sell your domains? You can give them on lease for a couple of years. The reason why I suggest you this is that the two sites you want to sell can do business for you. You are already into SEO and hence you can run a website. You may have personal reasons for selling them off, like you are too occupied with other work, but still, why to slay the goose that gives golden eggs? It just needs a few minutes of your precious time. However, if you have made up your mind, try to find out some organization into ipods and make a deal. Alternatively, use the site for Blogging (it looks like a blog at the first go), do some Adsense and earn revenue. Ups and downs are a part of business and you should not plan to sell off when things don't go your way. Be a fighter. Good Luck.
Insecure Leaders - I'll take a bet on some business leaders being insecure in their position and if they ask anyone else for help they might get shown up! Another reason might be to do with ego and as you say, it could be a sign of weakness. For the smart business leader it's a matter of finding the people who will actually benefit the business rather than a consultant just trying to sell themselves primarily for their own benefit. I find that most companies who try to sell me something "beneficial" are trying to benefit themselves first.
Re: private label rights - Don't think of PLR as just articles or written work. Also consider actual products. Example if you were to create or have someone create a "backlink creator", you can sell the PLR to that. In this case it can be easier to make more money and faster. Instead of you having to market and sell something for $20 sell the PLR to 100 people for $100 then they can sell for whatever they want. If you were to get 100 people to buy it at $20 that is $2000 for you. Now if you were to sell the PLR to your product to 100 people for $100, obviously that is better... So if PLR is done properly you can make a lot of money... I have some things I will be getting into in 2009 that relate to this subject, so I will share as I progress.
Make your strategy - First up, you need to identify where you want to go; 1. Who do you want to sell to? 2. How do you want to sell it to them? 3. What do you have to work with in the way of resources. 4. How much do you need to sell it. 5. What do you need to sell it. 6. What makes your product different to everyone else’s? I saw your design, you're a talented graphic artist, but immediately selling a design featuring only your logo without an existing market presence to back it may prove to be a mistake. Have you thought about offering a range of apparel, or even offering custom designs to people as an option?


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