7 Reasons You May Need to Sell Your Business
Did you know that around 20% of new businesses fail during the first two years, and 45% fail during the first five years? Though everyone wants to see their business succeeding, running a business is never easy.
Business owners face different obstacles that can cause them to sell their businesses. Though you may have dedicated your time and finances to starting and growing your business, selling it might be the most brilliant move you can make.
But what makes people decide to sell their business? Here are some common reasons why you may opt to sell your business.
1. You Need Money
One of the common reasons for selling a company is money. Business owners sometimes convert their businesses to liquid cash and use it for different purposes, especially emergencies.
Some people sell their businesses to pay medical bills, travel the world, start another business or chase a new hobby. In such cases, selling your business may be the best way to get the money you want.
Note that, though buyers are interested in investing in a new business, especially if the owner is losing interest in it, buyers shy away from businesses running at a loss.
Therefore, if you are selling a company to fund another lifestyle or need, ensure you still pay attention to the business until you get the right buyer.
2. Unforeseen Business Risks
There are several risks that a business can face. Some common risks include security, financial, legal, compliance and more. The success of any business relies on how much they prepare for business risks.
Some people choose to sell their business because they do not have enough money to operate it while failing to open their doors after a security breach. When starting a business, it is imperative to determine the risks you may face and have a robust risk management strategy.
Suppose you don’t have a good plan to handle risks and can no longer hold the business together. In that case, it may be an excellent time to sell. Though you will still lose your business, selling will allow you to start over again.
3. Retirement
You have dedicated several years of your life to growing and building your business. Now it may be time to take a break from it. Several entrepreneurs sell their profitable businesses because they are retiring.
Others choose to pass the business down to their family members. However, the latter is only possible if your family members share your passion and have the right skills to run the business.
If you feel it’s time to take it easy and enjoy your good golden years, consult the best business services providers near you and find the right buyer for your business. They will maximize your sale price, give you different offers or options and ensure you make good money from your business.
Whether you are moving to a retirement home, want to buy a house, or start an easy-to-manage business, you will get enough profit to fund your plans and have some money for retirement.
4. Relocation
Several business owners sell their businesses because they have to move to another state or country. Since relocating a business can be challenging, it may make sense to sell the business and start another in your new location.
In some cases, you may need to sell your current business to explore a better business opportunity in another location. Since relocation also involves strict timelines, you may need to find a buyer as soon as possible.
This can also affect your selling price. To ensure you have enough time to transfer your business and that you don’t sell your business at a loss, consider hiring a broker immediately after you decide to sell.
5. Looking For a Change
Changes in dynamics can cause a business owner to sell their company. This can be as simple as losing interest in the business. It is okay to desire to change or take time off and figure out the next step.
Changes in life, such as a divorce, can also cause a business owner to sell the business as they divide their assets or change their spending habits.
Whether you want to pursue another different type of business or not, you can choose to sell the business while it is still profitable.
6. Burn Out
Running a business is very involving. To ensure your business is successful, you may need to stay actively involved, which can be very tiring. If you are no longer interested in the business or feel tired, consult a business broker and know your options.
This way, you will get expert selling advice, including the best time to sell the business at a good profit. Note that when burnt out, it is best to sell the business before losing interest in it.
This way, you will be patient enough and more determined to sell it at a reasonable price.
7. Business Partner Problems
If you disagree with your business partner, you may want to sell the joint company and venture out independently. In some cases, one partner may consider buying the other partner out, or both parties may decide to sell to a neutral party.
Before selling the business, consult an expert business broker and get a possible asking price from an outside buyer. Sometimes, selling to an outside buyer may be more profitable than selling to your partner.
At times, it may be easier to sell the whole business instead of retaining some equity. Get to know what is achievable and the best decision to make for your company.
Sell Your Business with Fusion Business Services
Selling your business is a vital decision. Since you have invested your time and money in your business, it is only fair that you get the best deal when selling it. At Fusion Business Services, we work with businesses and help them get the best from their investments.
We will evaluate your business and ensure you get the right buyer. Consult our experts and learn how you can take advantage of our network to sell your business.
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6 Things to Consider When Selling Your Restaurant Business in St. Louis
The restaurant business is a lucrative one with annual sales comprising more than 4 percent of America’s gross domestic product. That’s a whopping $863 billion in sales. So, there’s no doubt about it, the hospitality industry is cut-throat.
With so much competition around you, owning a restaurant is not for the faint of heart. This is probably one of the most common reasons most restaurant owners choose to sell when the time is right.
If you’re one such business owner, check out these selling tips before you put your restaurant on the market.
1. Know What Your Business Is Worth
As a business owner, there’s nothing worse than undervaluing or underpricing what you’ve spent many years building. Before you list your restaurant for sale, ensure you have a clear idea of what it’s really worth.
To add to this, potential buyers or investors will want a detailed breakdown of your financials because they need to know what they’re buying into, too.
Set aside enough time to gather all the necessary financial data you need so that your sales pitch is attractive to potential buyers/investors. They’ll want to see a steady influx of cash flow as well as high-quality sales. During this time you can also augment and streamline your sales and expenses to improve your cash flow.
It’s also a good idea to scope out what other restaurants are selling for in your area. Hire the expertise of an appraiser if you want to make extra sure that you sell your business for the right price.
2. Understand the Terms of Your Lease
Selling a business is not always as easy as finding the right buyer. You often have other responsibilities that need consideration, such as the terms of the space you are leasing.
If you do not own the restaurant building/space, you’re most likely leasing it from someone. Before you sell your business, you must ensure you aren’t breaching any lease terms.
Remember that your landlord could jeopardize the terms of a good sale if you are in breach of a lease agreement. If you’re unsure of all the legal particulars when it comes time to sell your company, it’s best to hire a lawyer who can explain your legal rights to you.
It’s in your best interest to speak to your landlord about your plans to sell the restaurant. They might be willing to let you out of your lease early, so it’s worth being open and honest.
3. Enlist the Expertise of a Business Broker
While you think you might have a good handle on the restaurant industry, no one understands trends like a restaurant business broker. These professionals specialize in selling and buying restaurants of all types and sizes, in different markets too.
A business broker can help you create the perfect marketing scheme in order to find the perfect buyer. They are specialists in their field and have a full grasp of the restaurant business, current trends, what buyers look for, and how to settle on the best deal.
If you have no idea where to start when trying to sell your restaurant, a business broker has you covered.
4. Sell Your Restaurant as a Commodity
How well is your restaurant doing? If it’s a thriving business with great staff, good customer turnover, intact furniture and fixtures, and up-to-date equipment, it’s a real commodity. And you should consider selling it as such.
In short, this means selling your business as a whole, an entire asset, rather than in parts. In general, most buyers find a thriving business that’s well established far more enticing than buying it in parts.
5. Consider Selling Off Your Liquor License
As a restaurant owner, you’re probably fully aware of just how valuable a liquor license is. In fact, it’s one of your most lucrative assets, depending on the location of your restaurant.
If you don’t plan on selling your business as a whole, you can begin by selling your liquor license to a willing buyer. Most of the time, you could receive a decent profit as liquor licenses are difficult to acquire so a potential buyer might be willing to pay.
Again, you can opt for the help of a broker to find you the right buyer.
6. Improve Your Restaurant’s Physical Condition
Selling a restaurant is much like selling a home — its ”sellability” hinges on what it looks like and its physical condition, especially from the outside. Curb appeal is not only important for homes, but for all street-side restaurants and businesses.
Before you list your business for sale, put some effort into upping your curb appeal, first. This might include a fresh coat of paint for the exterior, new paving, awning covers, light fixtures, tables, and chairs.
Always keep rubbish and other forms of refuse out of sight from your customers. The staging of the interior of your restaurant is also important. This is probably one of your key selling points.
You might need to consider replacing outdated furniture, the interior might need a repaint or updated tablecloths. Going that extra mile to improve the physical space of your restaurant can do wonders for how quickly it sells, and the profit you pocket.
Looking To Sell Your Restaurant Business?
The decision to sell your restaurant business is huge — that’s why you need the right guidance. With Fusion Business Services you have the expertise, support, and industry connections of one of the best business brokers in the St. Louis region.
We can put you in touch with legitimate business buyers willing to offer you the price and profit that you deserve after many years of hard work. Learn more about how we can help!
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How to Work With a Small Business Broker in St. Louis
There are plenty of reasons a small business owner in St. Louis would choose to sell their business.
The market may be in your favor, and you’re ready to make a profit by selling. It could be time to move on to the next thing or just time for you to end this professional chapter. Finding the right buyer can be difficult regardless of why you’re selling.
When you’re ready to sell, working with a small business broker is always a good idea. Having extra help from an expert who knows the ins and outs of the local market can be a huge help.
If you’re considering hiring a business broker, you’ll want to ensure you get the most out of your arrangement. Here’s what you need to know to have the best experience possible with your broker.
Understand How Payment Works
Every business broker handles payment in their own way.
Some require money to be paid upfront, others collect money once the sale has gone through, and some do a combination of the two or something new entirely. Regardless of how the broker handles getting their payment, ensure you understand payment terms before agreeing to work with them.
Most business owners expect brokers to take a small commission from the sale. The issues start to arise when they’re unclear about how much the broker plans on taking or when it’ll happen.
It isn’t unusual to see some brokers request anywhere from 8% to 15% in commission. In addition, some brokers charge monthly or progress fees on top of that commission.
Make sure that payment is discussed and understood early in the process. This way, everyone involved can avoid unpleasant surprises.
Come Prepared
When working with a business broker, there’s no such thing as giving them too much information. The more information you can provide the broker about your business, the easier job they’ll have finding the right buyer.
Take the time to prepare for your first few meetings by gathering all the documents and files they’ll need to sort through. Going as far back as possible can help give them insight into your business, but generally, a good rule of thumb is to have documents going back at least three years.
Bring documents around money like profit/loss statements, balance sheets, and information about cash flow. They’ll play a significant role in your business valuation. However, they’re far from the only helpful documents your broker will need.
Any paperwork you can bring that explains your business plan or executive summary can benefit your broker. It’ll teach them essential details about your business and could help them form their marketing plans and sales pitches.
Agreements with vendors, suppliers, and employees can also be beneficial. This can educate your broker on any legal obligations with employees and entities.
Be Prompt
Things move fast in the business world. The last thing you or your broker would want is to miss out on something because you didn’t notice a missed call or sent email.
Remember, you’re far from the only small business owner that wants to sell their company. You can have a lot of competition in your local market or industry, and they could snatch up your buyer if you aren’t careful.
Make it a point to check your phone and email throughout the day. Answer questions your broker may have as quickly as possible, and don’t be afraid to let them weigh in on some of your decisions.
Develop a Communication Cadence
Some business owners want weekly updates from their brokers to see how things are progressing. Others only want to hear from their broker when they think they’ve found the right buyer. Regardless of your choice, talk to your broker about how often you wish to communicate.
Both you and your broker are busy professionals. Coming up with a communication schedule is an easy way to ensure you get the information you need at the right time.
When thinking about how often you want to be in contact, also think about how you want to be contacted. For example, some people prefer to talk on the phone. Others only want things in writing and prefer texting or emails.
Have the Right Expectations
Brokers may be a great asset, but there are some things even the best brokers can’t do.
It can take time to sell a business, and as recession fears loom, it may take even longer. Your broker may be able to find a buyer, but they won’t be able to help you make thousands in profit if your business is underwater.
A lot of the tension that happens between brokers and business owners comes from having misaligned expectations. This is why both parties must be as open and honest as possible.
Be as upfront as possible with your broker. Talk to them about your expectations around how long it’ll take to find a buyer, the broker’s involvement, and how much you think you’ll get for the business.
This allows you to be transparent about what you want. The broker may change some expectations, but that can be good. You’ll want to work with someone realistic who also understands what you want.
Find the Right Small Business Broker for You
A broker is a must when you’re trying to sell your business. If you follow the tips in this post, you’ll be setting yourself up for success with your small business broker.
Are you ready to work with brokers that understand the right way to sell in St. Louis? We’re dedicated to helping you find the right buyer. Contact us today to discuss the best way to market and sell your business.
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Quickly Sell Your Business in St Charles County: A Complete Guide
Are you looking to sell your business in St Charles County? Whether you’re retiring, moving on to something new, or just ready for a change, selling your business is a big decision.
With over 8,647 businesses sold in the U.S. in 2021, there’s a lot of competition out there. But where do you start? How can you make sure your business stands out and sells quickly?
How do you get the best price for your hard work? And how can you be sure the transition goes smoothly? Here are a few tips to help you sell your business quickly in St Charles County:
Prepare Your Business for Sale
If you’re thinking about selling your business, there are several important things you’ll need to do to prepare. First, you’ll need to get your financials in order. This means gathering all the necessary documentation, such as income tax returns and balance sheets.
You also need to put together a sales deck or presentation that outlines your business’s key statistics, such as revenue and profitability.
You’ll also want to start thinking about what you want from the sale. What’s your ideal outcome? What are you willing to compromise on? By getting clear on your goals, you can start to formulate your negotiation strategy.
Getting all your ducks in a row will help you sell your business quickly and at a higher price.
Calculate the Value of Your Business
When you’re ready to sell your business, one of the first questions you’ll need to answer is, “how much is it worth?” Though there’s no single formula for calculating the value of a business, there are a few key factors that buyers will take into account.
One important consideration is the size of the business — larger businesses tend to sell for more than smaller ones. Another is profitability — businesses that are profitable, or have the potential for high growth, will usually command a higher price.
Finally, buyers will also look at the type of business and the industry in which it operates. Businesses in high-demand industries, such as technology or healthcare, will typically be valued higher than those in more traditional sectors.
By taking all these factors into account, you can get a better sense of what your business is worth. This helps you price it well for potential buyers.
Hire a Business Broker
Once you’ve prepared your business for sale, it’s time to start advertising it around. The best way to do this is to hire a business broker.
A business broker is a professional who will help you navigate the process of selling your business. They will help you find buyers, negotiate deals, and close the sale.
Working with St Charles business brokers is the best way to ensure that you get the best possible price for your business. They will also help you avoid common mistakes sellers make when selling their businesses in your industry.
Find the Right Buyer
When you’re ready to sell your business, it’s important to find the right buyer. The right buyer will be someone who is interested in your specific industry. They should also have the resources to make a fair offer for your business.
The right buyer should be willing to sign a non-compete agreement to protect your interests after the sale.
To find the right buyer, you can start by asking people you know in your industry if they know of anyone who might be interested in buying your business. You can also contact a business broker or an investment bank specializing in assisting with business sales.
Once you have a few potential buyers in mind, you can then begin negotiating the terms of the sale. With careful planning and preparation, you can ensure that you find the right buyer for your business and get the best possible price for your sale.
Be Honest With Potential Buyers
Honesty is always the best policy when selling your St Charles county business. It’s often tempting to try and make your business look more appealing than it really is, but this will only come back to bite you later on.
Be upfront about any potential problems or issues with the business and be prepared to answer any questions that a potential buyer may have.
If you’re not honest about the state of your business, the sale will likely fall through, and you’ll end up losing out in the end.
So, be honest with potential buyers from the start, and you’ll stand a much better chance of making a successful sale.
Know the Right Moment to Sell
Many business owners dream of the day when they can sell their company for a handsome profit. However, timing is everything.
Picking the right moment to sell can mean the difference between getting a good price and having your business languish on the market for months. If you wait too long, your company may lose value as it becomes outdated or less competitive.
On the other hand, if you sell too soon, you may miss out on important growth opportunities.
The best time to sell your business is usually when it is performing well and has potential for continued growth. If your business is struggling, you may be able to turn things around with a strategic plan and some hard work.
Pre-Qualify Buyers
It is important to pre-qualify buyers before putting your business on the market. You don’t want to waste time dealing with tire kickers or people who can’t afford to buy your business.
The best way to pre-qualify buyers is to work with a reputable business broker in St Charles County. A good broker will have a database of qualified buyers and will know how to market your business to them.
Sell Your Business in St Charles County Today
Are you ready to sell your business in St Charles County? Whether you’re looking to retire, move on to a new venture, or simply want to cash out, ensure you follow our guide above.
Contact us today if you need any help or advice when selling your business. Our team of experts would be happy to help you through the process and get you the best price for your business. Give us a call today, and let’s get started.
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Sell Your Business in St Louis With These 6 Tips
It takes between 30 and 90 days to sell a business in St. Louis. How long your business takes to sell will depend on factors like the business type, the business structure, and the location.
If you want to sell your business in St. Louis, it’s vital to know the steps to follow to ensure you find a buyer quickly. You need to keep in mind that selling your business is a process that might take some time.
Are you looking to learn more about what it will take to sell your business in St. Louis? Keep reading to learn the six steps you need to follow.
1. Determine Why You Want to Sell
The first step in selling your business is understanding why you want to sell. This knowledge will help you determine the future of your business and set a timeline for its sale.
Some business owners sell their businesses because they’re preparing to retire. Others might need to sell due to personal or health reasons. Some sell because they want to move on to something else.
Whatever your reason for selling, understanding your motivation will help you move forward with the sale. It will also make it easier to communicate your reasons to potential buyers.
2. Get Your Business Valued
The next step is to get your business valued. This will give you an idea of how much your business is worth and help you set a realistic selling price.
There are a few ways to value your business. One is to calculate the business’s net worth, which is the value of its assets minus its liabilities. Another way is to look at the business’s revenue and profit.
You can also hire a business broker to value your business. This is a good option if you’re not sure how to value your business or if you want a professional opinion.
The broker will determine the most accurate value for your business because they can access huge databases and use them for reference.
3. Prepare Your Financial Records
One of the things potential buyers will want to see is your business’s financial records. They’ll want to know things like your revenue, expenses, and profit margins.
So, before you put your business on the market, make sure you have your financial records in order. The records will give buyers confidence in your business and make the sale process smoother.
You should also have a business plan ready to show buyers. The plan will give them an idea of your business’s future and how they can grow it. If you don’t have all your financial records in order, now is the time to get them in order.
4. Find a Business Broker
You’ll sell your business faster if you rely on the expertise of business brokers. If you decide to handle the heavy lifting and ignore these professionals, there’s a high risk that your business won’t sell, or it won’t fetch a good profit.
A business broker will understand how to manage the sale process and ensure you get a higher profit. They’ll handle everything from determining your business’s value to preparing presentations for potential buyers. A broker will also bring a subjective perspective to the sale process because they’ve no emotional attachment to your business.
When choosing a broker, it’s crucial to pick someone who has experience selling businesses in your industry. This will ensure they have the knowledge and connections to help you sell your business. It’s also essential to choose a broker you’re comfortable working with.
5. Market Your Business to Find a Buyer
Once you’ve chosen a broker, it’s time to start marketing your business for sale. There are a few ways to do this.
Your broker will likely list your business on their website and other business-for-sale websites. They might also run ads in business publications and reach out to their network of buyers.
You can also market your business yourself. You can start by telling the people you know that you’re selling and running ads on your social media pages.
The key is to get the word out that your business is for sale. The more people know, the better your chances of finding a buyer.
6. Negotiate and Close the Deal
After finding a buyer, you should be prepared to negotiate a sale price. This can be a complex process, so it’s vital to have your business broker help you with the process.
Your broker will likely present the buyer’s offer to you and help you negotiate a counteroffer. They’ll also help you reach an agreement on terms such as the purchase price, payment schedule, and closing date.
Remember that you’re in control of the negotiation process. Don’t be afraid to ask for what you want and hold out for a fair price.
Once you’ve reached an agreement with the buyer, it’s time to close the deal. This is the time you’ll make a sale, and the ownership of the business will change hands.
The closing process can be complex, so it’s crucial to have an attorney help you with this. They can ensure the deal is structured correctly and that all the necessary paperwork is in order. After the deal is closed, you’ll receive the purchase price, and the buyer will officially own the business.
Sell Your Business in St. Louis Faster
Are you planning to sell your business in St. Louis? You’ll find the right buyer faster and increase your chances of success by following the above six steps.
If you’re serious about selling your business, you’ve probably searched the web for how to “sell my business” or “sell your business in St. Louis.” Look no further than Fusion Advantage. Our business brokers will help your small or medium-sized business find the best buyers in the St. Louis Area.
Contact us today to learn more about how we can help you with the selling process.
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