Selling a Business in Canada
Tips on how to sell your business
If you are planning to sell your small or medium size business then you have come to the right place. Business for Sale Central is one of the top online resources in Canada for entrepreneurs and franchise owners. Proper planning is crucial when it comes to preparing your business for sale. Selling a business is unlike listing or advertising other for sale items, such as a car or a house. The for sale process for a business is generally a much longer and more involved. Many businesses for sale do not end up being sold due to a lack of planning and understanding of what it requires to sell a business. Here are some quick selling tips so you can put your business on the market for sale and ultimately sell it for the price that it deserves.
Tip 1: Plan Ahead and Start Selling Early
Many business owners wait until they are ready to part with the business then they list the business for sale, expecting it to sell in a matter of a few months. Selling a business can take a long time sometimes years. There are so many factors involved in a decision to purchase a business, such as price, profit, required skills, financing, business valuation, learning curve, and more. Matching the perfect buyer looking for the perfect business for sale is what we do. So start early. Even if you are not ready to sell today, test the water. Try one of our free trial ads so you can talk to interested buyers and find out what they like and don’t like about your business and what price they value your business at. The information you gather will be invaluable in making your business more attractive than other businesses for sale in Canada. It allows you the opportunity to tweak, modify, or enhance your operations and address some of the concerns voiced by these potential buyers so that your business becomes more “sellable”.
Tip 2: Realistic Business Valuation
One of the greatest and most common mistakes an entrepreneur makes when selling a business is the valuation of his or her company. Most business owners tend to overvalue their business which will delay or even halt the entire for sale process. Unlike selling a property, it is very difficult to get true comparables for non-franchise businesses since every business is so unique. There are many different valuation methods and professional valuators and brokers that can help. But bottom line is, what your business is worth depends on what potential buyers are willing to pay for your business. You can only find this out buy listing your business for sale and speak to potential buyers.
Tip 3: Prepare the Business for Sale
Much like staging or de-cluttering a house prior to listing a property for sale, businesses must be prepared as well prior to selling. You want your company to look as attractive as possible to a potential buyer. This includes everything from, visual appearance of the business, website and traffic, condition and age of the inventory, all the way to the most important of all, financials. Business owners are often reluctant to put additional money and effort into a business that they plan to exit. This is a common mistake. It is important that you understand the fact that most people who are looking to buy businesses are looking for a business that is doing reasonably well, with more tangible or intangible assets then debt. Now, this does not mean you start “cooking the books”. It means you must be even more diligent in making sure the business is profitable by decreasing spending, turning over your inventory, and boosting your top line. If you are not profitable then it is important that you are showing a bottoming out and steadily rising sales. If the company you have advertised for sale does not appear to be viable, no one will buy it. To get the highest value for your company, you must set the business on a course for success without you. Buyers are searching through businesses for sale ads, whether it’s a bakery, bed and breakfast, convenience store, coffee shop, gas station, restaurant, or even a car wash, for a concept that can generate a steady stream of profit, fund the purchase and ultimately make a decent living.