If you are having thoughts on selling your Perth Metro or WA based business then you need to take into consideration the steps you will need to take in order to prepare and sell your business.
Selling a business can be a complex and time-consuming process, patience and proactivity will be key in ensuring you are satisfied with the outcome of your sale. It is essential to be as best prepared as you can and well informed as you work your way through the process.
If you own a small to medium sized business (SME business) we recommend those looking to sell their business allow at least 1-2 years of planning before advertising your business for sale.
For a large business or larger enterprises this may require longer (3-5 years) as there are more factors to take into consideration (staffing, succession planning etc).
What are the usual steps taken before considering selling your business?
There are a number of steps that you need to take before even considering your business but the ones we will mention are:
- Your competitors in business
- The current market
- Your current customers/client base
- How you market your business
- The future of the industry of your business
- The actual value your business is currently worth, not what you want to sell it for
Once you have the answers to the above then you can start to put together a Business Improvement Plan.
Business Valuations
If you are looking for a particular ‘$’ figure when selling your business, consider what changes or improvements you need to make in order for you to get there.
Do you need to complete a business valuation or business appraisal to see what your business is valued at right now and then make a plan on how you will increase the profitability of your business so you can sell it for the sale amount you are looking for.
How to prepare your business for sale
Start to make repairs or upgrades that you have been holding off on. Organise your financial record and look into creating a detailed business plan with your accountant or advisor. You might also wish to look at hiring a broker or lending specialist to get involved in your process.
Create a marketing plan that targets potential buyers in your industry so when you are ready to advertise the sale of your business you are reaching the right audience.
While the process requires careful planning and you will encounter unforeseen challenges are you carry out the sale process you will achieve an outcome that maximises the value of your business and ensures it a long successful future for the new owners.
The best and first thing you should do when considering selling or exiting a business is talking to your advisor. For more information or to book an appointment to discuss the future of your business, please contact our office.
