Selling Your Business

Selling Your Business

Tips You Need To Know...

Tip One: Make It Need No Operator.

The biggest incentive to a buyer is knowing that he need not actually run the business, that is to say, the business can make money and do just fine without the new buyer needing to operate it personally. It has its own management and staff, etc., and therefore, he is not merely "buying a job". If you are selling a business which can't run itself, but rather requires the buyer to run it or spend a lot of time on it, you are not selling a business. You are just selling a job, and buyers don't pay much for that. In fact, its not really a business deal. Putting your business into the position of not needing your efforts will not only make your business more sell-able, and increase its price, but will make you into a true businessman.

We don't mean that the buyer will need to do absolutely nothing, of course. He will need to watch over the accounting, perhaps make high-level hiring and firing decisions, and handle the financial arrangements like banking and borrowing. But he will not need to work at the operations and things will not require his daily attention. If you are selling a watch repair business, he won't need to repair any watches. If a car wash, he won't need to be scrubbing any cars.

Tip Two. Make Sure It Doesn't Need You.

If your business cannot run and make money without you personally being there, you can not sell it, because frankly, you have nothing to sell. A buyer will not be interested in buying your business if the whole thing depends on your personal relations and goodwill, your connections or network of friends. Nor will they be interested if you are the main skill involved in the business, or if you are somehow a key person. Who wants to buy a business and then have the old seller hanging around holding him hostage? This is how to maximize the worth of your business...ironically, by minimizing your worth in it, and minimizing your need.

Contact a Denver Business Lawyer at The Vasilco Law Group, P.C. for legal counsel and litigation representation.