Sell My Business - 7 Must Ask Questions

Selling a Business is an involved process; it will take longer than you think. Do not delay starting when you have determined it is time. Weigh the positive and negative points in relation to: Selling or not selling. Once you have decided to sell lots of questions will arise.

7 Must Ask Questions when I want to Sell My Business:  

• Why am I selling?
• What is the asking price?
• When is this the right time to sell?
• How do I reach out to buyers?
• List on line and sell myself or list with broker?
• Should I hire a lawyer?
• Should I keep sell confidential?

All these are difficult and overwhelming questions that will have to be addressed. Answering the questions will give some relief from feeling of being overwhelmed, not knowing where to start. After working through these questions you will be able to make a educated decision.  Remember there is large numbers of businesses sold every day so it can be done and in a comfortable manner when you find answers to the questions. Selling your company may be the most important business decision you ever make.

You may be getting burned out! May be time to retire, time to start something different, sell take capital and try a new vision. There are lots of reasons to sell just make sure you are doing it for the right reason and one you are comfortable with.

To read the full article, CLICK HERE TO VISIT 

Sell My Business - 6 Steps to Sell a Business

Are you considering selling your business? If so, you need to start getting your business ready. The good news is if you take the time and get it ready, the business will attract buyers and sell for top dollar.  Not taking the time to get the facility and accounting in proper shape will cost the seller money. A business will have greater value if a few details are taken into consideration.  So how can you win when you sell the business? Here are a few tips that will head you in the right direction so the value will be the highest possible, (added value).

1. Importance of first impression.  Looking at a business is the same as looking at a house, if the building does not have a clean comfortable look, buyers will not take a second look. Make some cosmetic changes and clean up, then you will enjoy showing your business off and buyers will respond in same.
    
2. Start your plan. There are two basic ways to start the process putting your business on the market, list on web, sell yourself or list with a Broker.  Seek out and interview Brokers, until you are comfortable with the knowledge and ability of the Broker you choose. Brokers can be a valuable to coach and help with the process and will be worth their cost if you do not understand the process or if you do not have the time or feel comfortable with your knowledge of the process.  If you choose to sell yourself, once you have your business in order, list it on more than one web site like Bizlocal.com. Chose at least two web listing sites and use the information on these sites. A seller packet can be found on these sites. The seller packets will provide the work sheets needed to work through the process of preparing a business for sale.  These sites are designed to make selling a business yourself as simple as possible even though it is not simple process, large numbers successfully sell their business each week.  Brokers list businesses on several web sites, giving maximum exposure.  The more buyers that view your listing, the more likely a buyer will be found.  There are two basic types of buyers. Those who are looking to buy a fixer-upper and those looking to buy themselves a job.

To read the full article, CLICK HERE TO VISIT 

Sell My Business - Insider Secrets to Structure The Deal

Selling a business can be difficult and costly if sell does not understand the options. You have more options than they may realize. Not doing your homework and taking the wrong approach has serious financial consequences for the seller and company, so it pays to know the positive and negative options.

The simplest way to exit a business is probably an outright sale. This approach makes sense when an owner’s family members have no interest in taking it over or when the owner can’t figure out how to take the company to the next level, meet challenges that may have arisen, or just getting burned out.

There are two ways to cash out: An owner can sell the company’s assets outright, or he can sell his stock in the company (or units if it is a limited-liability company). Stock sales tend to benefit the seller, while asset sales are more beneficial to the buyer.

Asset buyers are getting the company’s customers, facilities and physical equipment, as well as intangibles such as goodwill and trademarks, and as a result the buyers are generally protected against prior claims against the business. For example, the previous owners would most likely be responsible if an employee hired on their watch filed some sort of lawsuit plus other types.

To read the full article, CLICK HERE TO VISIT 

Top Businesses to Survive 5+ Years

You've hear it said, that 90% of business fail in first 4 years.  There's been a lot of research, and argument on that specific statement, however no one can dispute that failure rates are extremely high.  So what if we looked at over 5 years, as a benchmark.  If a business model is more likely to be in business past the 5th year, then it would merit some consideration.  At the very least, a short review to consider WHY they make it past 5 years.

1. Religious Organizations
2. Apartment Building Operators
3. Vegetable Crop Productions
4. Office & Clinics of Medical Doctors
5. Child Day Care Services

source: http://www.statisticbrain.com/startup-failure-by-industry/

Keeping the Faith

Number 1, religious Organizations, like it or not, often file for a form of licenses within their jurisdictions. While they may be represented as a Church, Mission or Community Outreach program, these organizations depend on regular revenue (contributions) and are least likely to disappear within the first 5 years. I am the last person to suggest that religion is a business. In fact, mixing religion and business often spells trouble. None the less, statistics indicate religious organizations to have the best life-expectancy. Success is built on Faith. The faithful followers continue to return, keeping operations... operational.

To read the full article, CLICK HERE TO VISIT 

Selling a Business in Florida

Wow!  Businesses for Sale in Florida can be exciting!  Yes, the economy suffered, housing crashed, but a lot of businesses thrived.  Why?  Lower overhead and extremely pro-business State Taxes!

So, if you want to Sell a Business in Florida and desiring top-dollar from the buyer of your business,  read on!  Yes, you've probably seen some tough times.  In fact, your mind may only think about the hardships.  That said, you have some GREAT things to offer potential buyers, above and beyond your business!

Owners seeking to sell a business in Florida should take time to highlight some of these pro-business facts, along with the details of their business for sale.

• Limited Corporate Taxes
• Reasonable Consumer Sales Tax
• No Personal Income Tax
• Road and highway infrastructure makes it easy to travel
• The state puts a lot of energy in attracting tourism
• Housing is extremely affordable
• Awesome night life for an Owner to relax
• Great Dining experiences from Sidewalk to Fine Dining
• ...and... Who doesn't love the beach?!

Of course, your business should be marketable.  If you are selling a business, make sure you've prepared your financial documents for the past 3 years, assembled some history on the business, it's founding and the strong points it enjoys in the market.  Buyers love it when the current owner expresses things they would have done differently.  This is due to your intimate knowledge about your business, it's weaknesses and market potentials.

You will need a reliable valuation for the business for sale, so buyers are confident in the asking price you are trying to sell the business for.  This is a point when a Broker, Consultant or Business Appraiser will come in handy.

Once complete, take some great photos and visit BizLocal.com to build your first advertisement of the business for sale.

Buy A Business
Sell A Business
Get Help! Call 1-800-785-2925

Business For Sale Listing Websites Mobile Friendly

The last quarter of 2013 revealed that mobile and tablet friendly website designs had crossed from Trends to Necessity.  Several of our sites saw over 30% traffic from mobile and tablets and was one of the reasons for developing the BizLocal.com Business For Sale marketplace.

When last checked, ZERO websites that offered Business For Sale Listings were Responsive to Mobile/Tablets and the varied devices between.
In fact, a couple had a 'Mobile Version' but Mobile Version and Mobile Responsive are different things.  A year ago, mobile devices were somewhat standard, but began to grow very different.  How many different sizes of phones, tables, even pc's and laptops are there now?

To test one.... grab the edge of your browser and reduce the width.
You will see the web page reorganize to adapt as the screen size reduces in width, or it will not reorganize and reduce, requiring you to scroll to the right to see the rest of the page.

The following info graphic speaks volumes!
It was prepared in the fall of the year, but the message is still important!

By the way, if you own a business or bought a business, is your website responsive?
If not, call BizLocal! 1-800-785-2925

How to Sell a Business - Business For Sale...

We've been through a challenging economy and are seeing tremendous indicators of a long-term upswing.  Business that have survive the last 4 years, did so by properly adjusting their business model and financial situation.  Prior to the collapse, many individuals were nearing retirement, however had to continue do to the turbulent changes that hit.

Does that sound like YOU?  Many people are in your shoes.  Proving stability through the tough times, a large number of businesses are ripe for qualified buyers.  An amazing number of business owners are considering sales, with an equally amazing number of potential buyers on the market.  Buyers see businesses, like yours, as great opportunities to step into a business that has already had the waste trimmed and budgets optimized.  By bring fresh energy and marketing efforts, they stand to do great things with your existing business.

How do I Sell my Business
One may ask "What is involved with selling my business?" The process of selling a business will vary from business to business.  Small businesses placed for sale may have limited, yet admirable financial documents.  Larger companies and manufacturers may have a series of complex records to sift and prepare.  To start with, all have a common need.  The need to determine how much to sell the business for.

Valuation of a Business For Sale
Valuation of a business often relies on the financials of the business, industry multipliers and some real insight into the business and industry conditions.  There are various services that offer cheap valuations, some for as low as $49.  These services often just give you an idea of what a similar business may have been recently listed for.  Listen, every business is unique!  Other services may run $500 or more.  Again, they may give you an idea, but you get what you pay for.  I have found that good business valuations often run $3000 to $5000 for a small business.  Some larger businesses often run $10k to $25k.  Again, every business is different, requiring greater or less research, resources, and/or experience from the individual or firm providing the valuation.

For basic do-it-your-self snap shots, checkout a previous article I posted that provides a formula for determining Seller Discretionary Earnings and a ruff method of picking a multiplier.
http://biz-local.blogspot.com/2014/01/how-to-sell-a-business-as-an-individual-seller.html

You should also get your CPA to generate 3 year report of Cash-Flow, as well as P&L Statements.  Be sure to include all disbursements to owner, family or for owner/family.  Things like an automotive lease, cell phones or draws.

Where do I list my Business For Sale
The big question... Where is the best place to list your business for sale?  You are about to engage in Marketing your Business For Sale.  You seek potential Buyers as Contacts/Leads.  In many ways, you are about to go into the business of selling your business.

Marketing and Advertising require you to be Smart.  Reaching as many potential buyers as possible, but more specifically, qualified buyers.  Lot's of websites generate 'Leads'.  Cull through them, and you will notice the large number of bogus names, emails and phone numbers.  Your marketing and advertising efforts need to reach real people.  Now, there will probably be fewer contacts, but they should be richer in value.

About BizLocal.com
BizLocal.com was specifically built to use modern technology, in area of software, databases, page optimizations, mobile and tablet friendliness and search engine penetration.

You will want to prepare a few things to place a listing.
Try and include as much of the following information as you can;

• Length of time in business
• How many employees
• Is the location good for business
• Comparable's to businesses in the area
• Give some general information on the company
• Financial Information
• Let them know about any bonuses the business may have, i.e websites
• Always include a few phone numbers that you can be reached at

WAIT! This is important.
Many Businesses face turmoil in their employees or customer base when it becomes public knowledge, that you want to sell your business.
When placing your listing, consider using a County verses a City for location specific data, don't use the actual business name and consider details that may need to be broader in the public eye.
Once you qualify a potential buyer, you may be able to deliver greater details.
Not every business needs to worry about this, but do consider it as you prepare to market the business.
Contact info@bizlocal.com if you would like a generic email address, that no one else would recognize, at BizLocal, or other help on keeping it quiet!

Now, ready to Sell your Business?
Visit this page to list your Business For Sale NOW!
Or call: 1-800-785-2925

Business Strengthens.. Gently, but looking Good.

According to the Bureau of Labor Statistics, The Producer Price Index for finished goods showed an admirable gain of 0.4 percent in December, seasonably adjusted.  Through earlier stages of processing, prices of producers of intermediate goods rose by 0.6 in December.  Additionally, Crude Goods index climbed 2.4 percent.

These mild increases are a good sign.  They fall short of fueling an overpriced market, while demonstrating a strengthening economy that can afford gentle growth.

Why is this BLS Report this Important?

For the past couple of years, we've faced a very challenging economy and business atmosphere.  Some saw huge success, while most were in a virtual survival mode.  As we enter 2014, the feeling through many of my business associates and clients is a slight feeling of relief.  The nail-biting years of 2012 and 2013 are behind us and indications are of a good 2014.  Currently, I don't see anyone exuberant over 2014, more of a cautious deep breath of and relax for a moment as businesses get into a regular routine again.

Frugal or Penny Pinching Tight-Wads

Successful business for 2014 will occur with caution, in every area of expense.  This includes labor, cost of goods and materials, marketing and advertising, as well as direct overhead and office expenses.  More of a hands-on and active management style will show forth in 2014, as the need for frugality clashes with very real needs for a properly compensated workforce, proper working conditions, quality in materials, products and services, as well as good marketing and advertising activities.  It won't be easy, but it will be much better than 2012 and 2013.

What does that mean for Businesses for Sale?

As mentioned in other articles, those Businesses that have survived 2012 and 2013, mostly did so with tribulation that challenged them to tighten many areas of weakness.  These companies are like steal pulled from an oven and cast into a vat of oil to harden it.  If you are looking at a New Franchise for Sale, you will also notice the Franchise has probably been refined and tightened a bit through the past couple years of experience.  Buyers, you have opportunities to look at New Franchises and existing Businesses that could be in a better position for growth and profitability than ever before in history.  The economy is strengthening and I have found many Businesses for Sale to be in a great position for the future.

Looking to Sell a Business or Buy a Business?
BizLocal.com has thousands of Businesses for Sale, as well as opportunities for individuals and brokers to sell a business by listing it online.  Visit BizLocal.com today!

Source: http://www.bls.gov/news.release/pdf/ppi.pdf

How to Sell a Business as an Individual Seller

Ok, so you want to sell your business. Would you rather sell it yourself, as opposed to contacting a Business Broker? Selling a business can be complex. Each business is different, as well as the markets they exist within. That said, if you choose to do it yourself, we are about to share the simple Steps on How to sell a Business by Individual Sellers.

To get started, we cannot sell a business without finding buyers. We cannot find buyers without marketing the business for sale. We cannot find buyers without determining a reasonable asking price. We cannot determine a proper valuation without getting a few pieces of financial data together. So, let's get started.

Determining Key Financial Numbers

We are going to determine the SDE (Seller's Discretionary Earnings). Depending on who you talk to, this number may be referred to by different titles. (e.g. True Free Cash Flow, Owner's Benefit).

To determine the SDE, we will need the following:

1. Pre-Tax Net Profit: The Net Profit you report after all expenses.
2. Depreciation: Any Property or Asset which you have purchased and are depreciating, on an annual basis. The total annual reported depreciation will be needed here.
3. Amortization & Interest: Amortization & Interest paid by the Business.
4. Owner Salary and Perks: Owner Draws, Incomes or Other Perks not required as a regular Expense for the Business, itself. Also any draws or perks paid to spouse or other family. In some cases, an annual country club membership or cell phone may be examples of 'Other Perks'.

This is a straight forward and simplified method. More complex and detailed analysis can be performed by a Certified Business Appraisers. So, here it is. The formula is pretty simple. By applying your Key Financial Numbers this formula, you will get a good estimate of the SDE (Seller Discretionary Earnings).

Pre-Tax Net Profit + Depreciation + Amortization & Interest + Owner Salary and Perks = SDE

Pre-Tax Net Profit	$_______________
Depreciation	$_______________
Amortization & Interest	$_______________
Owner Benefits & Perks	$_______________
SDE TOTAL	$_______________

Selecting an Appropriate Multiple

This is a judgement call and may be viewed differently by others.  Sometimes a business owner has high visions of his business and it's position, while another individual may see things a little more black and white.  Try to be honest here and select a number beside the closest description of your business.

Multiple	Select Multiple That Best Fits
1 - 2	New or Small Business. Personal Services Business. The Owner is the only or one of the only Service Providers in the Company.
3 - 4	Established Small Business. No significant advantages. Little hard assets. Stiff competition. Heavy dependency on proper management for profitability.
5 - 7	Established Small/Medium Business. Admirable market position. Mild competition. Swings in revenue. Requires continual good management.
8 - 10	Well Established Business. Solid market position. Revenue will reliably continue without regard of strong management.

As you can see, this is not an extremely deep view or determiner of a company's multiple.  It does give a fairly close estimate, for those who are honest about their business.  For a more specific multiple, you will need to know how the multiples run on various industries and business sectors.  Often times a good Business Appraiser will work from your SIC code and select the best industry/business sector and it's multiples.  In every case, it is a judgement call, so being honest to yourself or a Business Appraiser is key.  Be aware that a potential buyer may also consider his/her view of your business situation and multiplier.

All Purpose, Simple, not Perfect but Good Business Valuation

SDE Total  X  Multiple = Potential Asking Price

How to List the Business

Now that you've determined a possible Asking Price, it's time to assemble a Business For Sale Listing and post your listing online.  Listen, if you want to find buyers, then you need to get your business in front of as many as you can.  Now, there you do need to consider being discrete, while reaching as many people as you can.

Discretion, Keeping it Quiet

Employees and existing customers get a little nervous when word hits the street of a business for sale.  Sometimes the competition fuels the message in order to take a bit of your market-share.  First, it is seldom a good idea to give your actual business name and address in a public Business For Sale Listing.  Save that for your Potential Buyer Packet, which you do not let out until you've qualified the potential buyer and secured an NDA.  Often a seller will list the county and state of a business for sale, holding the city and street address out for serious inquiries.  That said, you can be very creative and informative, as to the business title, description and financial data.  Also, it's a good idea to use a Contact Name, Phone and Email different from your own.  Listings of Businesses for Sale often contain contact information or provide a form to reach you.  Any personal identifiable information could be an issue.  Often an account for selling a business will need your true name and address, but that should be completely separate from the Contact Name, Phone and Email associated with the listing, if you wish to remain Discrete!

Where do you go? Go to BizLocal.com to Sell Your Business.

Visit BizLocal.com and Click "SELL" or Sell as "Individual Seller" to begin.

1. Create a Seller Account with only a Name, Email and Phone.
2. Enter your Listing Details & Upload an Image
3. Select your Package and Checkout

While creating your listing, you will notice a couple key items.  Select relevant Categories.  Give it a strong title that attracts buyers.  Give it a Sub-Title/Quick Sales Pitch.  Enter as much detail as you can. Keyword suggestions are in a box, but you can add more keywords that relate to your business or product.  Keywords are important as they aid internal and external search engines.  Enter your financial information and other questions, including Reasons for Selling.

After completion, you will notice a Back Office link in the upper right header, giving you access to an easy Back Office suite to manage your listing.  You can manage your Account, Listings and Contacts.  An important feature is the ability to edit your listing, at any time.  You can even put it into Draft Mode, moving it from public access, if you feel you need to put more attention in the detail of it.  Also, each time your listing Card is viewed, we track it.  When it is clicked on... well that is tracked as well.  If the visitor is logged in or has an account with us, their email/username will be seen in your analytics.  The system also tracks referring url's.  This enables you to determine where your visitors are coming from.  In some cases, they may have found your business for sale from Facebook, Twitter, Google+, or a Blog.

Do some Self Promotion

That's right!  Now that your listing is live, you should promote it a bit.  From BizLocal's BackOffice, you can select your listing and push to Facebook, Twitter, Google+ or Pinterest.  Visit the public side of BizLocal.com and go to Buy a Business to find your business.  View it and copy the link from your browser.  You will notice a 'Search Engine Friendly' url.  Now drop that in the signature live of your email account and include in various email correspondences, or simply use it in the body of an email to someone you would like to share it with.

Happy Selling!

DISCLAIMER: The author does not provide legal, taxation or investment advise. The author provides business services, in areas of marketing, advertising, web-presence and business consulting.  

When Selling a Business, Be Prepared for some Questions

Potential Buyers often take time to do a bit of research, review all information you provide and ask some important questions.  This is part of the selling process and you should prepare for these questions.

Why are you Selling your Business?

Often the first question that comes up.  There are a couple of reasons.  It is an ice-breaker.  It get's a conversation started.  It tends to get the seller to talk about personal issues with the Business being sold.  It can catch you unaware and cause a fumble!  So, Why are you Selling your Business?  Be honest, it's ok to tell the truth.  Have you reached an age, where you are bored.. seeking something new? Are you ready to retire and relax in the mountains?   Are you tired of employees and the business side of things?  Is the business making little or no money?  Whatever your reason, be straight and honest.

What is the Background and History of your Business?

Again, a great ice-breaker and an opportunity to share the passion of the Business and your passion for it.  A viable business often has a story and is often the cause for customers and sales.  This is an opportunity to share how the Business positioned itself in the beginning, how it operated and how it is positioned for the future.  It's also a good opportunity to share what you'd do different, if you stay in the business for a few more years.  This data let's a potential buyer know what they should consider changing or doing, from your point of view.

Where does the Revenue come from?

Serious buyers will get into the numbers and ask a lot of questions.  Your Income Statement, P&L and Owner's Benefits.  The buyer wants to know how they will generate revenue, where it comes from, how it stacks up against expenses and what's in it for them!  It's not uncommon for a Small Business to include an Owner's Draw, annual Country Club Membership, annual Zoo Membership, Cell Phone, even a Leased Car.  All of these should be spelled out as Owner's Benefits, as they are not directly necessary expenses for the ongoing operations of the business... except for they provide the Owner to exist!

Many more questions will be asked.  Most important is to be honest.  Before these calls come in, take time to write down some notes about your business.  The simple activity of writing them down is a great memory-jogger and helps you to be prepared and comfortable for the questions to come.

To Get Started Selling YOUR Business, go to BizLocal.com and click SELL!

Author: Scott H Leonard, Founder BizLocal

Contact: 1-800-785-2925

Website: BizLocal.com