Tuesday, July 14, 2015

8 Tips on How to Prepare Your Retail Business for Sale

To prepare retail business for sale, it requires some amount of quality time. It is very important to carry out a detailed research and preparatory work, before you list your business with a professional agent or broker. When preparatory work is done well in advance, the procedure of business sales will move on in smooth condition and the outcome would be simply more rewarding.

Here are 5 top tips that will help you to prepare any retail business for sale in Florida by owner, whilst making minimal efforts:

  1. Drive profitability – The selling price of the business usually should be a multiple of profitability compared to the previous year. If in case, you have sufficient time, you can trim down costs and do everything required to drive sales. Every dollar invested by you to EBIT will further add multiple dollars to the sales price of your business.

  1. Get all paperwork done It is advisable to work with your accounts personnel to get all business paperwork updated so that any question can be easily answered and verified easily whenever required. The more easily you can answer financial questions, the more claims about the performance of your business would be trusted.

 

    Make the business desirable It is important to review all operational procedures and eliminate any of them which are unique to the current management. Therefore, it is advisable to make your business as simple as possible to operate with new employees. Business which is dependent on existing employees or worse still the owner really turns out to be harder to sell.

  1. Develop a strong business plan which is focused on growth People usually prefer to buy a business depending on the potential of the business. While the business may have growth ideas, it could make the business more saleable, if the detailed research work has been done to provide a nice growth plan which is developed to show what has been achieved till date and how it has been achieved.

  1. Tidy up – From inside the store to the office, keep your business premises neat and tidy. Further, make it more presentable and attractive so that prospective customers are ready to buy your business.

  1. Create a growth plan Even if, you are ready to make a quick exit from your business, it is important to show buyers that your business has several opportunities ahead of it. Further, it becomes very important to make sure you can credibly show 3 years of meaningful growth after the sale.

 
 
  1. Consider investing in your business sales & growth potential – Any potential buyer will have a detailed look at the growth potential of your business sale. It simply means that you will be investing quality time before and during the entire merger and acquisition process for increasing your sales efforts. Besides this, it is very important to keep in mind that one should hire sales representative and increase their efforts and investments in their growth initiatives.

  1. Enhance your business profile – Increasing the visibility of your business is the main key to attract right type of buyer for your business type. It is therefore very important to spend some good amount of time before/during the entire M&A process. This may be inclusive of certain types of offline and online opportunities such as trade show appearances, guest blogging, making good use of guest speaking opportunities and other such good opportunities.

Thus, it can be said that with these handy tips, you will be able to prepare retail business for sale with minimum fuss.


 

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