This economy is affecting everyone.
Large corporations are merging and asking for bailouts.
Households are focusing on necessities instead of, what Robert Kiyosaki calls, "doodads".
But small businesses are taking an even harder hit, their merging market is tiny, there is no bailout set aside for them and households' cutting back usually starts and ends with the purchases at small businesses.
Business fluctuates and can be seasonal.
Some small businesses rely on holiday sales to carry them through the year.
Unfortunately during tough economic times, holiday sales have dropped too.
When alternatives to stay afloat start to bottom out, you may not have any other option but to sell.
With each business transaction, you should always think about value, value to someone else when you sell.
Here are 10 advice tips on selling a small business.
1.
Customers.
Retaining your customers, having repeat business makes your business that much more attractive to a potential buyer.
It shows them that they will have a customer base when they take over.
2.
Credit.
Stay current on your payments to wholesalers.
New owners may have to establish a relationship with them, but if your business has a reputation of paying on time and buying frequently, it will make their relationship that much more sound.
They will have a good track record to follow.
3.
Sell the business.
If you own the building, you can sell the business at one price and collect rent (another income stream) from the new business owners.
4.
Inventory.
If you own the building but your business has gone down dramatically, rent your building to another entity completely.
Sell your inventory to other similar businesses.
Post the sell of your inventory in your local paper, trade magazines, and on-line sources.
5.
Sell the building.
If you own the building and your business has gone down dramatically, dissolve the business and sell the building.
Check with your neighbors, they may want to expand and buy your building.
Hire a good commercial realtor who deals with commercial property daily.
6.
Clientele.
If you do not sell your business, but dissolve it, sell your phone number and contacts to a competitor in your area of business.
That holds a lot of value and will give your current customers an alternative.
7.
Bookkeeping.
Make sure your records are accurate.
A potential buyer will want to see your track record at least 3-5 years back.
Your accountant should be able to provide that or if you keep records on a system such as Quick Books.
This will give them a visual of your highs and lows and will help them map out a new strategy.
8.
Landlord.
If you rent your space and sell your business, make sure the proper paperwork is complete with your landlord.
Depending on your lease, you maybe financially responsible for the duration of your lease.
This means if the new business owner's default on paying the rent, you may be responsible, or if they cause any damages, you may have to pay for the repairs.
9.
Downsize.
Before selling, try your own cut backs with service fees and employee wages.
You may be top heavy in the wrong areas.
Freeing up money may help you stay afloat and/or make your books look more attractive.
10.
Communication.
Make sure you communicate your situation to your investors and business team before it gets desperate.
No one likes costly surprises and they may be able to give you advice before it gets too bad.
Large corporations are merging and asking for bailouts.
Households are focusing on necessities instead of, what Robert Kiyosaki calls, "doodads".
But small businesses are taking an even harder hit, their merging market is tiny, there is no bailout set aside for them and households' cutting back usually starts and ends with the purchases at small businesses.
Business fluctuates and can be seasonal.
Some small businesses rely on holiday sales to carry them through the year.
Unfortunately during tough economic times, holiday sales have dropped too.
When alternatives to stay afloat start to bottom out, you may not have any other option but to sell.
With each business transaction, you should always think about value, value to someone else when you sell.
Here are 10 advice tips on selling a small business.
1.
Customers.
Retaining your customers, having repeat business makes your business that much more attractive to a potential buyer.
It shows them that they will have a customer base when they take over.
2.
Credit.
Stay current on your payments to wholesalers.
New owners may have to establish a relationship with them, but if your business has a reputation of paying on time and buying frequently, it will make their relationship that much more sound.
They will have a good track record to follow.
3.
Sell the business.
If you own the building, you can sell the business at one price and collect rent (another income stream) from the new business owners.
4.
Inventory.
If you own the building but your business has gone down dramatically, rent your building to another entity completely.
Sell your inventory to other similar businesses.
Post the sell of your inventory in your local paper, trade magazines, and on-line sources.
5.
Sell the building.
If you own the building and your business has gone down dramatically, dissolve the business and sell the building.
Check with your neighbors, they may want to expand and buy your building.
Hire a good commercial realtor who deals with commercial property daily.
6.
Clientele.
If you do not sell your business, but dissolve it, sell your phone number and contacts to a competitor in your area of business.
That holds a lot of value and will give your current customers an alternative.
7.
Bookkeeping.
Make sure your records are accurate.
A potential buyer will want to see your track record at least 3-5 years back.
Your accountant should be able to provide that or if you keep records on a system such as Quick Books.
This will give them a visual of your highs and lows and will help them map out a new strategy.
8.
Landlord.
If you rent your space and sell your business, make sure the proper paperwork is complete with your landlord.
Depending on your lease, you maybe financially responsible for the duration of your lease.
This means if the new business owner's default on paying the rent, you may be responsible, or if they cause any damages, you may have to pay for the repairs.
9.
Downsize.
Before selling, try your own cut backs with service fees and employee wages.
You may be top heavy in the wrong areas.
Freeing up money may help you stay afloat and/or make your books look more attractive.
10.
Communication.
Make sure you communicate your situation to your investors and business team before it gets desperate.
No one likes costly surprises and they may be able to give you advice before it gets too bad.