As an online business owner, there might come a time when you’re asking yourself, “It is time to sell my business?” It’s is not always a bad thing when you need to sell your business. There are several reasons why you might be considering selling your business, such as:
- Your capacity cannot handle the business any longer
- Someone has offered a huge profit to purchase your business
- You’ve decided to venture into a new business
Selling an online business can be either for personal or professional reasons, but the key is making sure that the decision to sell the business is the right one for YOU. Here are five things that you should think about to help you decide whether or not you should sell your business:
Do I have the Right Exit Strategy in Place?
Selling an online business is not a simple decision to make, and it is not something that you should take lightly. In general, you need to have prepared at least one year in advance to sell your online business, given that you will be making a momentous decision that will not only affect you, but also affect your employees (if you have any) as well as your customers. If you are thinking of selling your business, you need to have updated records, a strong and detailed history, and a prospectus readily available. If you don’t have one of these things, prospective buyers might get the impression that you are selling your business out of desperation, and that will negatively affect your position when it comes to pricing your business and during negotiations.
Have I Partnered with the Right Person to Help me Sell my Business?
Hiring the right online business brokerage is essential to having a smooth transaction when it comes to selling your online business. There are significant benefits to partnering with the right company, such as access to key markets, being connected to your target buyers, and having someone knowledgeable about the technical aspects of the sale, such as regulations, fees, and paperwork. You need to practice due diligence in finding the right online business brokers to represent you; don’t just hire the first person you see with a good-sounding sales pitch!
Are People Aware of my Business?
Many people make the mistake of thinking that just because they already have a strong client base for their business, they don’t need to advertise or market their business to prospective buyers. They also make the mistake of thinking that a broker will handle the advertising for them. Having a strong customer base doesn’t necessarily translate to having people who will be willing and able to purchase that business from you, even if that business is doing well!
The bottom line is that no one knows more about your online business than you, and no one is more capable of marketing its strengths to a prospective buyer. What’s more, you should be as passionate and motivated to sell that business than any brokerage you come across! Yes, a brokerage can help you access the right people, but it ultimately be up to you to finalize the sale by highlighting the values and strengths of your brand in your own unique way.
Do I Have the Right Valuation for my Business?
For many people who are selling their business for the first time, one of the hardest things to do is actually getting a price tag for your business. You might get sentimental with your business (it is your baby, after all) and ask for an unrealistic price, or you might be wary of scaring off any potential buyers and low-ball your valuation. Both of these moves will end up affecting your position negatively.
In order to avoid these pitfalls, you need to hire a professional brokerage company that will use market-standard computations to calculate the valuation of your business. They will use mathematical formulas using your company’s available assets, remaining stock, current market prices, operating costs, and other factors to come up with a realistic valuation for your business.
Have I Found the Right Buyer for Me?
When an offer does come along, many people jump at it without considering whether it is the best offer for their company, especially if the sale process has been taking a bit of time. They don’t take into account whether the new owner has the skills, experience, or technical know-how to run the same business successfully. Even if you are selling your business, you want to make sure that you are selling it to a person who has the same capabilities, resources, and connections in the same market so that you know that you are leaving your business – something that you grew with your own effort, time, and money – in the right hands.
