Picking the right time to sell

There's no doubt that running a business can be stressful, but running a successful business can sometimes be the dream job.

Working in an industry you love and seeing your idea flourish is every business owner's dream, however it's common practice for many SME owners to try and sell off while they're at their peak. 

Timing is crucial when you decide to sell. Here are three key tips as discussed on Inc.com that will help ensure you get the best value for the years of service you put into the business.

Prepare early

It's common for a business sale to drag out over time, so it's important to prepare yourself for a potential sale years in advance.

The last thing you want is a quick sale that doesn't represent the true value of your business worth. In order to achieve the best possible return it's important to keep all your financial records in order. The better prepared you are to display the cold hard facts of your business success the more likely you are to achieve top dollar for your sale.

Research the market

In order to understand the right asking price you should set for your SME, it's a good idea to undertake some market research on current businesses up for sale. This will help determine if you are undervaluing or overinflating your asking price and will help you build reasonable expectations around the sale.

Another option is to consult a broker or professional appraiser who can assist to help determine the true value.

Provide proof

Potential buyers will expect proof that they are investing in an asset that can bring them money. Take the time to highlight the benefits of your company and try to differentiate your investment from other businesses on the market. Ideally you'll want to demonstrate the potential for future growth to show the long term guarantee of the business purchase.

Deciding whether to sell or not is often the hardest part of the sale process. However, inadequate preparation and lack of research can damage potential profits and add lengthy complications as well. Even if you're not thinking about selling just yet it might be worthwhile to take the time to complete the necessary research in order to help secure the time and resources you have invested.

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