Selling your small business in San Jose, CA is not as difficult as it may seem. Ever since the market crash of 2008, many Americans have lost their jobs and have had to find alternate means of income. Many applied in different firms and companies and had to settle for menial pay, despite their qualifications. Others saw the market crash as an opportunity and started their own businesses. However, running a small business can be pretty difficult. It requires a lot of time and effort, and you will often find yourself sacrificing your time with family in order to meet clients, conduct meetings, and discuss details.
Because of the time and effort required in running a small business, many people often consider selling their businesses. However, if you are interested in selling your small business, you would at least want to receive adequate compensation for all the hard work and effort that you have put in. Small businesses are like infants: you need to put in all your time and energy in order to make them grow. If you want to sell off your business, here’s a brief guide to help you get the best possible value for it.
Get Your Accounts in Order
If you haven’t updated your financials in a while, it might be time to get some things in order before selling your small business. When investors consider your business, they will look at a variety of different things. It is almost guaranteed that the first things they will look at are your financial statements. Make sure everything is in order. If your business has been generating good sales and profits, a buyer will look at it as a viable investment. Many entrepreneurs fail to get their accounts in order, and thus, they often get a lower than expected valuation.
Renew Existing Contracts
Your business is only as good as the contracts that you have with your clients. If you are thinking of selling it, you should first renew any existing contracts that you have. Take a look at all running contracts and shortlist those that are in the last year. Then, contact your clients and ask them to revise any stipulations and renew the contract. When a buyer first inspects your business, they will look at all the contracts that you have in place. Buyers are generally more interested in businesses that are running and require little to no input.
The best way to sell your small business would be to hire a broker. Brokers generally stay in touch with buyers and sellers and charge a small commission for their services. However, they’ll get you a better price!
