Preparing to sell your business is an exciting time. However, it can also be a daunting one – especially if you have no experience and don’t know what to expect.
This article will advise you on how to make your online business more sellable so that when the time comes to sell, you’ll get the best price.
1. Make a Sale Plan
If you want to make your online business sellable, you need to start with a plan. Even if you find a buyer today, you will need time to get your accounts, finances, staff contracts, premises, brands, products, and intellectual property in order.
The best place to start is by making a sales plan. Prepare for each stage of the selling process so that you can feel confident in your decision and ensure you don’t forget something important.
Seeking business-selling advice from an expert can maximize your chances of success. Most business owners only get to sell their business once, so having a detailed plan and the advice of an expert can help you put your best foot forward.
2. Know Your Sale Figure
Did you know that 90% of your wealth could be tied up in your business?
How much would you like to sell your business for? Knowing your sale figure before you start the selling process could make all the difference to a successful sale.
The last thing you want, after all, is an interested buyer asking your price only to find you stuttering around and pulling numbers out of the air. The value of your business is whatever a willing buyer is prepared to pay.
Your business is yours (at least, for now), so it’s up to you to find out how much it is worth and how much money you need to live post-sale. But don’t let vanity get in the way. It can help to have a range to work within – a maximum offer and a minimum offer.
Remember you aren’t just selling a company name, often you’re selling intangible assets that have increased in value over time (your company website) and trust formed with your audience which has increased brand and reputation value for however long you’ve been in business.
Be sure to understand the following when deciding on your sale figure:
- Social media channels: How many followers do you have? What is your organic reach like? How much engagement do you receive from your online audience?
- Website domain: How authoritative is your domain compared to competitors in your niche? How much traffic does your website receive on a monthly basis? How much evergreen content is drawing traffic to your website?
If you don’t feel this is a decision that you can make on your own, consider speaking to your accountant. They may be able to offer some advice. Whichever route you choose, it is essential to know your sale figure so that you can sell from a position of confidence.
3. Hire An Expert Seller
To get the best sale price for your business, it is important to hire the help of an expert seller. Unless you have connections already interested, it’s unlikely you’ll be able to sell your business by yourself.
Choosing a seller can be a complicated process, so be sure to take your time because the right person can mean a big difference in your final figure.
We recommend choosing a seller who knows your business or is a specialist in your sector and knows the market well. Approach them with a list of questions, speak to their previous clients, and be transparent. Whoever you choose to sell your business should be able to get your asking price at least.
4. Getting Involved
Hiring experts to sell your business does not mean you can put your feet up and relax – far from it.
As the business owner, your role is to be at the forefront of all aspects of the selling process. Attend the meetings. Read all the documents. Ask any questions you may have. Be over-involved if you want to.
It is far better to get involved in the sale of your business and ensure it goes the right way than to sell your business for the wrong sum at the wrong time because you made an impulse decision.
5. Organise All Your Accounting Information Clearly
When a buyer is interested in purchasing your business, they want all the relevant information to be presented to them in a way that’s easy to understand and quick to read through.
The important word in that sentence is relevant. If you are running your business out of your personal account, stop now. The last thing a buyer wants is to route through irrelevant financial information to find out whether your business is making a profit.
One small mix-up, such as a missing expense or an overlooked cost can mean the difference between a sale or not.
By keeping your books in order, you are providing evidence to potential buyers that your business is profitable and that all taxes are taken care of. When your business is in order, it is far easier for buyers to assess the true value of your business and offer a price.
6. Create a Standard Operating Procedure
A Standard Operating Procedure is essentially a manual detailing the different operating aspects of your business. Buyers want to buy a business that works like a well-oiled machine and having an SOP is a great way to prove that yours is worth the investment.
Creating an SOP means it is a lot easier for potential buyers to see opportunities in your business for further growth. Although an SOP can take time to create, it could secure a valuable sale once in place.
Making the decision to sell your online business isn’t something to take lightly. It takes a lot of time and planning to get the most value out of an offer.
By following the steps outlined in this article, you will be setting yourself up for a successful exit. even if you decide not to sell at this time, our points will help you improve, organise, and automate your business so that when the time does finally come to sell, you’ll be ready.