Some people like to start a business and see it all the way through until the bitter end. Others prefer to start something and cash in for the best price. If you are one of the latter, your life isn’t as easy as people may think. Instead of worrying about long-term growth and smart investments, you are worrying about selling at the right cost. And, that is a very worrying prospect because most people won’t give you a fair price. Indeed, they will give you the price that best suits them. Here’s how to stop that from happening.
Set A Reasonable Asking Price
Although you want as much as possible, you have to be realistic. No one is going to pay over the odds if they think that they won’t make a profit in the future. Start by researching how much similar businesses go for, and work from there. If you can find one that is almost the same as yours, you can get a better idea of the sale value. A good tip to remember is to start a little higher. A buyer will always come in low, so this compensates for that fact.
Get An Independent Valuation
You need to get a valuation to figure out the asking price. But, you need to get it from a source that both parties can trust. Otherwise, they will use it as an excuse not to buy. Unfortunately, not everyone is going to trust you. In fact, lots of buyers will think that you are out to take them for a ride. To prove them wrong, agree on a valuator that you both trust. Whether it is small business valuations or big ones, you need to follow this tip to the letter.
Learn How To Haggle
Your negotiation skills are going to make all the difference. If they are good, you will receive a lot of money. If they are poor, you won’t. It is that simple. A good haggler never shows their emotions because emotions only get in the way of the sale. Plus, an interested party can use them to your disadvantage. For example, they will play on your emotions if they know you are desperate to sell. A good negotiator is also strong. You should have a price that you won’t sell for regardless of the circumstances. Make sure you never go under, even by a penny. For more info on how to haggle, take a look at this guide.
Make Sure The Business Isn’t Codependent
Lots of businesses rely on the hard work and genius of a few people. The bad thing about this is that the buyer needs to keep them on for the business to continue to succeed. It may not seem like a problem, but new owners like to stamp their authority on business as they like to do things their way. For that reason, you need to make sure that power is balanced. Then, you will be more likely to sell, and for a handsome profit.
Hopefully, you will be on a beach somewhere with a cocktail in hand before you know it.
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