How To Sell A Business Quickly
There are a lot of legitimate reasons for wanting to know how to sell your business quickly.
Whether you just know in your heart that it’s time to move on, or whether your situation has changed due to unprecedented circumstances, there’s no point in hanging around.
A lot of people are very surprised at how long it takes to sell things like businesses and this can cause no end of frustration for business owners.
Once you’ve made the decision to sell, you want it done and done fast so you can draw a line in the sand and move on.
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Knowing that it is a very frequent occurrence for our clients to want to get out of their business fast for completely logical reasons, we thought it might be a good idea to share some practical tips and tricks to speed up the sale of your business.
As a seller, there are a few things you can do now, to help attract buyers to your business, and help the sale go smoothly.
How To Sell A Business Quickly: Explained
As we’ve said, there are plenty of reasons why you might want to sell your business quickly, but what are the reasonable limits of that?
Some of the motivations for wanting to make a speedy exit might be because the owner wishes to retire, or their health status changes suddenly.
An owner might have come to the end of their patience with a business partner and just want to separate from them as soon as possible for the good of the company.
But usually, sellers at Niche Investor have felt a change of passion for their website, and are ready to focus on other projects.
You may have another reason for wanting to release the capital quickly like you want to buy a property or invest in something else entirely.
All these are legitimate reasons for wanting to sell your business in a timely manner but you should be realistic about the reasons that people might suspect as to why you are wishing to get the business off your hands quickly.
How Long Does It Take To Sell A Business?
A typical business sale takes from six months to a year and in some cases, the wait can be even longer if there are complex legal things to hash out before the sale can be completed.
However, online businesses that sell at Niche Investor tend to close in 3 weeks or less, once an accepted offer is on the table.
This is because we have an efficient team that manages the entire sale process for you.
But there is no way to know exactly how long it will take to sell YOUR business.
The best thing to do is get it on the market at a fair pricing point and see how buyers engage.
What’s Your Rush To Sell Your Business?
Pricing your company for a quick sale is one way of enticing potential buyers to snap up the business and seal the deal quickly before a competitor does, but it also could create suspicion.
Buyers will want to know why you want to sell quickly, so expect them to ask questions.
Business is just business after all and they don’t know you’re honest.
Potential buyers might suspect that there are elements of the business that you are hiding or not being totally upfront about.
They will want to check your sales figures very thoroughly to see if one of the reasons you want to get rid of it is that the profitability of your business is now, or soon will be in question.
They might be suspicious of your motives for cutting and running when a business is a labor of love in most cases and is a summation of your hard work.
A lot of people would choose the right price and a long wait over a quick sale if it meant they felt their business was in good hands.
Some buyers will want to know the details of why you might be willing to forego that, so be prepared for that.
As long as there are good reasons for your wanting a quick sale and there is nothing sinister about it, you shouldn’t encounter a problem.
Priming Your Business To Sell Quickly
There are a few things you can do to help speed up the time it takes to sell your business.
It’s all about ensuring that it is in a position to be as attractive to buyers as possible.
Prep The Paperwork
One of the most important things you can do to help your business sell quickly is to ensure that you have all the necessary information and documents to hand and are ready to present to your broker or a possible buyer.
You might be looking forward to getting out of the company but this is no time for neglecting your business accounts.
You will your last few years of figures to show the profitability of your business in the past to show the potential income the company can generate.
Basically, keep your P&L sheet updated.
Your tax returns are another good indication of this and they will also help to allay any doubts the buyer might have about the success of the business.
If you can prove that the business is performing steadily and can honestly say that you know of no reason why this should change then that will put their minds and suspicions to rest.
You’ll want to get a business valuation as soon as possible, because this will help you know how to price your business.
You’ll need to think about all associated assets that will go with your business including tools, software, social accounts, email lilst, digital products and/or inventory.
As well as staff or virtual assistant contracts who plan to stay working in the business under the new owner.
These will need to be specifically described so the buyer knows exactly what they are getting for their money.
When you list your business at Niche Investor, your listing agent will put together a listing for your business, like these.
Having the appropriate paperwork ready and in order, will save significant time.
Some documents you may wish to consider getting copies of are: balance sheets, inventory of goods and property, financial statements, affiliate accounts, any licenses or trademarks, or details of any relevant subscriptions related to the running of the company.
If you have all of these in an orderly format then this will save you, your broker, and the buyer time when inquiries are made.
Be Proactive While Your Business Is For Sale
Once your business is on the market officially, it becomes a frustrating waiting game.
After the flurry of activity, you had to engage in to get the business ready to sell as fast as possible, this time will feel particularly anticlimactic.
Every day that goes by in which you hear nothing you start to wonder if the company is ever going to sell but you don’t have to sit and twiddle your thumbs if you don’t want to.
Your broker will be the expert on selling businesses, but you are the expert on your company.
Therefore you will have unique and possibly valuable connections that you can contact.
Whether they be suppliers, associates, email subscribers or even employees you can enquire as to whether they would be interested in buying the business.
Send them the link to your listing page on Niche Investor, where they can chat with your broker.
Select A Manager
If you are keen to be out of the business for whatever reason then you might not have to wait until it sells to duck out.
Instating a manager to take care of the day-to-day running of your company can have many benefits for you and for the quick sale of the business.
Being free of the general bother of the business can free up your time to deal with your part in the sales process.
This can cut down the amount of waiting time and help the sale move faster, too.
Seller Incentives
If you don’t have a buyer lined up to take the business as soon as you’d hoped, then you might want to consider creating some incentives to sweeten the deal.
Making your business look appealing to a potential buyer will help you to find one sooner.
You can consider lowering your asking price or offering seller financing so the buyer can pay in installments until the full amount is cleared to make your business look more attractive.
If you do offer financing then consider that this will mean that you will still be connected with the business for some time to come, although you won’t need to have any hands-on duties with the running or management of it.
Another incentive you could offer as a part of the sale is to include training for the new owner, managers, or employees that come with them.
This will help the buyer feel more secure that they’ll be able to take over from you seamlessly if you can help them understand how everything works.
Closing The Deal
There are many benefits to using a broker instead of going it alone.
Their expertise, for one thing, is invaluable when it comes to a speedy and smooth sale.
Whatever frustrating obstacles you encounter during the sale process, you can bet that your broker will have probably encountered them before and will know how to handle them efficiently and quickly.
The brokers at Niche Investor know the ins and outs of selling online businesses and each team member is also a content creator, too.
Using a broker can often speed up negotiations as well because we are experienced in reading both parties’ positions and know how to mediate between them without a fuss.
We have a network of buyers, who we can pitch to directly. We also manage the entire Escrow and closing process to ensure you get paid safely and quickly.
Get a free valuation today to see how much your business could potentially sell for.
How To Sell A Business Quickly – Conclusion
When you’re looking to buy a house, the words “quick sale” in the listing title can make you narrow your eyes with suspicion.
The price is very reasonable and everything looks sturdy and in order to the naked eye, but you’ll still be down in the basement with a flashlight looking for the smallest crack or hint that all is not well before you agree to take it.
You’ll be vigilant in dealing with the details because you don’t want to be handed the keys to your new house just before you discover a huge and costly infestation of Knotweed in the yard.
When it comes to selling your business quickly, be ready for some probing about your circumstances and motivations around the sale, and don’t take it personally.
To ensure that your business is ready for a quick sale and to show a clear picture to any potential buyers, the first step for you is to get all relevant paperwork in order and ready to share.
Once an interested party has evidence of the prosperity of your company, they will be ready to enter into negotiations without doubts or suspicions holding them back.
If you want to sell because your company is not turning a profit, be honest and make sure you explain the reasons for this dip in revenue if you can.
Some entrepreneurs love a fixer-upper business, as long as it is realistically priced.
