Sellers Guides. Are you going to sell your business? As a business owner, probably you may need some help from the experts with they selling guides how to sell your business. Hotel Dijual team are always there to help you. That is the why we provide you with guides of the process.
In this guides, it can will help you to make decision when is the right time to sell and how to get your business promoted in the right place and visited by visitors. We here to help you grow your business that’s why we also help you with the process of analyzing your business. For now, you might consider to check our other services:
Sellers Guides: When is the Right Time to Sell My Business?
Selling a business could be caused by many reasons and factors, internal and external. Probably you are kind of low risk taker or high risk taker, probably also because of something out of your control.
Take a look at this few reasons:
- Shifting to new business
- Need cash flow
- Dividing wealth
- Business strategic planning
- Economic situation
Whatever the reason and your motivation to sell, your plan is depends on the current situation and it will be influenced by the price.
Selling price normally reflects the performance and profits of your business, so this advice probably could help you reach a decision on when to put your business on the market.
Sometimes government regulation will also influence your decision and can also play a role in your decision to sell. Try to keep focused on your own business though and only worry about the external factors that will directly affect your business and its operations.
This is the most challenging situation for a business owner. Your plan to sell your business will influenced by your past performance. Why we said so? Buyers will consider this for sure. They will check your motivation to sell. For some buyers this is a critical aspect to consider, they might think that your business id not profitable with other words is loses. They will find this reason for sure. They will ask your business financial statement, legalization and many more.
Sometime this become trouble by business owner. Not infrequently of them trying to manipulate the situation by boosting the profits and performance in order to look good.
Current performance levels with slight profit variation
Buyer would consider to cross check your current business performance can be based on the trend of previous three to five years’ average profits. As a new potential buyer as well as investor, they will see the consistency the performance of your company over a sustained period of time.
The selling process may take some time. You don’t need to worry about your last performance, some buyer will consider whatever this current sustain situation. If they like the business and they think that they can grow it after buying it for sure they will make decision as soon as possible. Don’t miss your chance and take advantage from all situation.
Rise performance and increase profits
Business in growth period have a big chance to sell quicker and or with better price. A smart investor would be looking for the opportunity to take advantages for future success. Why so? There are many samples that we can show you. Since last few year, there are lot of angel investor with they brilliant concept of equity crowdfunding coming to take advantages from the growing business.
However, if business owners want to sell when business is booming, this also could be a potential too.
As buyers, they will spend more in order to rise the profits, a period of growth is always a time to check in with yourself on why you own and running a business.
Profit and performance will impact buyer decision on how your business is valued and this is vital for them. In addition to profit and performance, there may be other reasons why you’re considering selling up your business.
If your business is at this level, you need consider and ask yourself whether you can run it or not. This is a big though for you to increase profits, ensuring a better sale price in the future.
Think carefully before taking a chance to sell. Probably a competitive offer will threat you to be likely or unlikely to recover from your current situation. If this is the case, you need to objectively assess the likelihood of restoring the business to its previous heights by valuing and considering the risk of things deteriorating further more.
You’re not enjoying the business anymore
Do you find yourself sometimes thinking want to leave your business? Probably because of it doesn’t worth anymore or something else. Sometimes the stress and frustration of running your own business can outweigh the joy and freedom. It may start to feel like you’re trapped in a bad situation. You can find a business consultant like JULIZAR CONSULTING to help you find the solution.
Before seeking out professional help, try these tips to put the fun back in your business.
This is a tough one to face, but business ownership and leadership also requires humility. Is it time to sell your business to someone who can take it to the next level?
- Figure out what’s going on. Most business owners, can’t explain what the problem is. “If I knew, I’d fix it,” they’ll tell you.
They know there’s been a something wrong with their business, and probably they have problem with decreasing sales or quality of the products or services. But blaming sales won’t solve the problem. In fact, it will make the problem worse because the people working there will feel blamed and anxious.
You need to look at what’s causing the problem; fixing blame ignores the underlying issues. Y you need to figure out, with the help of your people, what’s really going on.
- Take responsibility. The problems you’re having didn’t just happen overnight or a day. Bad businesses sometimes caused by combination of problems that you never solve since long time ago. To fix a problem you have to look at how you (and others) have contributed to it and do something about it.
- Test your realities. The good thing about reality is it’s the same issue whether you believe it or not. The bad thing about wishful thinking is it may, or may not, match reality.
We all know there are certain guidelines and accepted truths, about running a business. But we often get into trouble because we follow the wrong truths. “Best practices” sometimes aren’t.
It’s easy to fall into the trap of working hard to get much better at something you shouldn’t be doing at all.
- Stop self-sabotage. Some people are strange, and one of the strangest things we sometimes do is ensure our own failure.
We’re used to toxic situations or dysfunctional people, so when things are going well, we take steps to make sure that we end up with the familiar. We think something is “too good to be true,” so we engineer its failure to demonstrate we’re in control. When things are going well, we create problems just to liven things up.
Step back and see if, insidiously, you are why the business isn’t fun anymore.
- Adopt a new approach. It’s not good enough to get to the root of the problem. If you’re in a rut, you have to sow new seeds for success, and adopt new approaches. Self-sabotage, as we’ve discussed, makes it easy to just accept the problems that are dragging you down.
- Create new relationships. After identifying new, positive, self-supporting, success-producing approaches, you have to create new relationships. New ways of relating with people you’ve worked with before, and relationships with new people who will give you an opportunity to practice and improve your new approaches.
- Make it a puzzle. People who start a business enjoy the thrill of the chase, the creative process of putting the pieces together, the rewards that come from figuring things out.
Sell on Your Own or Use an Agent?
There is certain situation that will make you hard to decide of appointing a professional advisor to help you sell your business or you sell it yourself. There is pros and cons between those two issues, sometimes not easy to choose which one is best and suit your needs. By using professional services means you might have to spend more for their expertise.
By choosing to sell it your self means you will pay more attention to the business. If your business doesn’t sell quickly or you not only will have lost focus on running your business, you may miss out on important opportunities that agents or other experts offer you.
Be wise in choosing brokers, not all business brokers have the same expertise. Do your your own research and due diligence before appointing a business broker.
Asking your business networks and industry associations recommendation is a great idea to sell your business to find a business broker.
Reason why you should consider to use brokers.
Agents/brokers Avoid Emotional Sales
Selling business like hotel is typically an emotional process. By using agent services you are one step removed and makes you less likely to make mistakes like, refusing to counter, overpricing, low offer because you’re offended, or giving in too easily when you have a deadline for selling. A realtor can follow up without communicating a sense of eagerness or desperation; following up is their job.
Agent have to deal directly with rejection every time a buyer’s tells you that the client isn’t interested. “As the business owner, it can be quite upsetting hearing some of the comments that are made by buyers.
Agent know the trick how to handle rejections and put a positive spin on any negative feedback. It is more difficult for the seller to keep their emotions because there’s no third party to advise to help you make decision.
Find Full-Time Job Broker
This is thing you should consider first. There are many reasons you have to consider this one. If you use not full-time broker, you put your business in risky situation. Why said so? Because they have other important thing to do beside selling your property.
Agents Access Large Networks
Even if you have a large personal or professional network, those people will likely have little interest in spreading the word that your business is for sale. You don’t have relationships with clients, but agents do. Business agency can bring you a huge potential buyer. A smaller potential buyer means less demand for your property, which can translate to waiting longer to sell your business and possibly not getting as much money as your business is worth.
Weeding Out Unqualified Buyers
An agent can find out whether someone who wants to view your property is really a qualified buyer or just a dreamer or curious neighbors. It’s a lot of work and a major interruption every time you have to put your life on hold, make your house look perfect, and show your home. You want to limit those hassles to the showings most likely to result in a sale.
Price Negotiations Take Skill
Even if you have sales experience, you don’t have specialized experience negotiating selling a business. Not only are you inexperienced, but you’re also likely to be emotional about the process, and—without your own agent to point out when you’re being irrational—you’re more likely to make poor decisions. Sellers who go solo also typically aren’t familiar with local customs or market conditions.