Step by Step Guide to Sell a Small Business in Australia
Nothing is more satisfying than watching your business grow and develop into a renowned company in Australia. There is no denying that starting a business in the competitive market is tough, but say it goodbye is more challenging. Since you have spent years building a brand, selling it can be an emotional moment for you.
The most difficult part is to find the potential buyer of a business. Whether you are running a restaurant business or an IT firm, you need an individual who can sustain the reputation of an existing business and take it to new heights of success.
Apart from that, you need professional help from a broker, lawyer and accountant to complete the documentation and due diligence involved in the business selling process. This will help you get the desired price, which is great for your retirement plan.
Here are key steps that will help you sell a small business in Australia with ease:
- Assemble Business Records
De-clutter all the business record and organise them in a streamlined manner. Your company’s accounts must be updated, and prepare a detailed business history, along with sales records and tax returns.
Do not forget to include the current figures, past numbers and projections. This will help you attract potential buyers with ease. Plus, the availability of all necessary documents will encourage a potential buyer to invest in an existing business. Organising business records will convince the buyer that he is entering into a trusted venture. Of course, there are tonnes of advantages of starting your own business, but you can also buy an existing one and generate higher revenues.
- Know Your Business Worth
This is one of the most important steps when selling your small business. Think out of the box and calculate the right value for your company. You can hire a professional to help you find the correct value after determining the price trends in the existing industry and the projected ROI of your business.
An experienced business appraiser will assist you by assessing your company’s goodwill and setting a selling price on other assets that can’t be quantified. The cost must cover every possession, such as trademarks, digital appearance, customer database, supplier’s details, etc. So, instead of setting a high price, evaluate the worth before making the final decision.
- Create an Exit Strategy
There should be a proper exit plan to say goodbye to your business without stress. As a business owner, you must manage everything, such as planning, operational activities, production, marketing campaigns, etc.
Now you are planning an exit, make sure you head towards the right direction and prepare everything in advance. You can also go through an interactive business guide in Australia to find more about exit strategy. It is also advised that you should never talk about the sale with your employees, as this will create a panic. It is important to break the news so they feel secure in this company. The process should be slow and steady so that you can plan things according to the situation.
- Focus on Achieving Higher Sales
A potential entrepreneur will attract to your business if it is generating higher sales. This means you must focus on achieving higher sales targets and creating an image of a successful and profitable business. Many business owners head towards franchising as it is a smart business option, but you can also explore an existing business with a strong reputation and huge returns.
It will also help you get a higher price when you sell a business. So, create a robust marketing strategy that can help you boost sales quickly.
- Put up on a Sale
You can trust a broker or just list your business on a reliable digital platform. In today’s era, people are leveraging online platforms to advertise their businesses for sale in Australia. This will give you high visibility as compared to traditional advertising methods. These websites are accessed by hundreds and thousands of web visitors who are looking for potential businesses for sale.
You can mention everything about your business, such as the asking price, stock in hand, revenue, turnover, key features, location, mode of income, etc. This will help you get the right buyer for your business.
- Negotiate and Start Paper Work
Hire professionals who can negotiate on your behalf and get the right value for your business. Ask your lawyer to prepare the NDA and a sales contract. It should include everything from business assets to an employee agreements/contract, a domain name to usage guidelines, etc.
Conclusion
It is difficult to sell your business, especially since you have built it with sweat and blood. Do proper research and follow these steps to find the potential buyer for your business.
