7 Important Points to Consider When Selling a Business

The location of a business can have a fairly drastic effect on the profitability of the business. The type of business that is location specific may not be able to survive in its current location. These points are not the be all and end all of the specifics that are relevant to businesses in general; they may also transfer to worthy considerations for businesses located anywhere.

#1 – What makes your business unique to the specific location it is situated?

This is important because if the area is flooded with the type of business you are running then the likelihood of it selling is not as great as something that is doing something original. If the buyer can see that they will have to compete pretty ferociously then they will be less inclined to buy. For instance, if your business just sells liquor in the Dallas area then you are probably going to have to think of a way to diversify the business.

#2 – What records depict its long term profitability as a business?

If the business won’t be able to survive financially then you will probably not have many interested buyers.

#3 – Is there room for innovation in the business?

If the business has trouble staying afloat financially, what opportunities exist for the buyer to enhance the profitability of the business by allowing the business to diversify its interests? If your Dallas based business has no room for business enhancement then you may need to start researching ways to make room.

#4 – What is the actual value of the business?

Sure you have probably spent a long time building up your business before trying to sell it – however, do you know the businesses real value? The real value comes from knowing how profitable the business is, the assets it owns and its market penetration. It does not come from any sentimental attachment.

#5 – Does your area require the services of your business?

This ties into the first point, but it is not the same. While your business may be unique, is it something that is going to remain useful to the people in your area. If nobody requires the services you are offering and you know it, the buyer has probably done their research and knows the same thing.

#6 – Is your business in debt?

If your business is in debt then would someone still buy it? Well they might. It comes down to how easily the business is able to pull itself out of debt. If the debt is because of initial start up costs and it is steadily paying back its debtors then sure, someone still may buy it.

#7 – Is my business ready for sale?

This may seem like a silly thing to ask yourself. However it is isn’t. If your business is at the point that is just losing money then it probably isn’t ready to sell. Unless the buyer has some pretty drastic ideas about how to turn it around it may be worth holding onto until it is in a better position.