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How You Can Sell A Business Yourself - No Help Needed

Guest post by: Ian Macleod

Article Overview: What you need to know to sell your business - The decision is made and you are keen to put your business on the market. What is the next step? What do you need to know about selling a business successfully? Here are some general tips to help you gain a better understanding of the process of selling your own business:

How You Can Sell A Business Yourself - No Help Needed

"YOU CAN SELL YOUR OWN BUSINESS!"

There are many reasons for selling a business - Retirement, health, family lifestyle, or you may have built a successful business and the time is right to sell and move on. Whatever the reason, it's going to be one of the most important business decisions you're likely to make. The process of selling a business can be involved and complex if you don't know the correct steps. However, armed with the right information you can successfully sell your own business. And, doing it yourself is more popular than ever with sellers reaping the rewards.

Business owners who sell their own business find it is an exciting and worthwhile task. No one has the knowledge of your business that you do - its unique benefits and day-to-day operations - so who better to sell it? What's more, business owners place a lot of the importance on reducing and controlling information leakage, maintaining confidentiality and, of course, you avoid the high commission fees paid to a business broker.

What you need to know to sell your business -

The decision is made and you are keen to put your business on the market. What is the next step? What do you need to know about selling a business successfully? Here are some general tips to help you gain a better understanding of the process of selling your own business:

Making the decision to sell -

There is no reason why you cannot sell your own business. It is a straightforward process. While an accurate business appraisal (to establish the correct selling price) is one of the most important aspects of selling your business, some of the other things to consider but not limited to include:

- Preparing your business for sale

- Get your documents in order

- Advertising/marketing plan

- Prepare for buyer inquiry

- Understand potential buyers

- Is you business green?

- Due diligence

Preparing your business for Sale -

Selling a business takes planning and preparation to maximize your business's top sales potential. Give yourself plenty of time to put everything in order - your accounts, systems and your people.

Get your Documents in order -

Documentation covers a myriad of things such as financial accounts. It is important to have the following documents at hand and ready for the buyer presale:

- Confidentiality agreement

- Information memorandum

- Summarized information memorandum

- Buyer Enquiry Form

- Letter of intent

Confidentiality Agreements -

It is important to get a Confidentiality Agreement signed before giving out any confidential

information to a potential buyer. This document binds them to the terms of the agreement. Genuine buyers are fully prepared to go along with and sign the correct confidentiality agreement.

Straight talk:

Make sure you have a Confidentiality Agreement and it is signed before you give any information. We cannot stress this enough.

Information Memorandum -

The point of the Information Memorandum is to give a potential buyer, details of your business and it becomes a great marketing tool.

The Information Memorandum should make the business sound appealing, and present all the significant information in a straightforward manner so a buyer can determine if they are interested in pursuing a purchase. If they are interested, they will however need further information.

The following are some of the headings from the template for writing your own Information Memorandum:

- Introduction and Summary

- Description of the Business

- Asking Price and Selling Terms

- The Industry

- Your Competition

- Your Products/Services/Customers

- Personnel

- Major Assets

- Business Plans

- Financial Statements

- Appendices

Summarized Information Memorandum -

Once you have completed the Information Memorandum, you should also do a summarized version.

You determine the level of information that you will send. Be certain you have the Confidentiality Agreement signed and returned before sending out such detailed information.

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  Lesson #2: “I've learned that it doesn't matter what you do, if you learn to sell, you will never starve.”

Article Tags: accurate business, advertising marketing, business appraisal, business broker, business decisions, business for sale, business owners, business retirement, correct steps, family lifestyle, health family, information leakage, maintaining confidentiality, marketing plan, own business, preparing your business, selling a business, selling your business, successful business, worthwhile task



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