A Step-by-Step Guide to Selling Online

2misi.com

The decision to sell can be brought on by many factors, including a change in location, finances, or lifestyle. Whatever the reason, sellers should be aware of basic steps that can make the transaction more efficient and effective.

we are noticing a growing number of would be business buyers browsing our site. Unfortunately, we also see many business owners attempting to sell online using largely ineffective methods. These situations are usually the result of a lack of research and preparation before listing a business, and can greatly increase the amount of time a business is on the market, can make the selling process more frustrating than it should be, and can result in a much lower selling price.

The good news is that if business owners looking to sell can devote time to researching proper selling methods and follow simple steps, the process can be a breeze.

Step 1: Preparing to Sell Your Business

As with any type of business, selling is not something to rush. Ideally, many months (if not years) should come between making the decision to sell and putting your business on the market. This allows you to properly assess and document the financial situation of your business and to create reports detailing potential growth and revenue. It will also give you enough time to modernize any outdated systems that might deter buyers once the business hits the market.

Remember - just because you have started the selling process and know you will soon no longer be responsible for the business does not mean you don't have to keep it up to date while it is on the market. It is important to put yourself in potential buyers' shoes and consider the type of business you would like to purchase if you were currently in the market.

Step 2: Providing the Right Information

The key to selling a business while maintaining confidentiality is providing the most information possible without giving away the identity of the business. It is important to give viewers an idea of the general location of the business, but do not post the street address, phone number, or email address in the listing. Instead, create a separate email address and phone number for inquiries from potential buyers.

Do tell potential buyers why you are selling the business. If you are honest, people will tend to be less skeptical, and you will probably sell the business faster. If your listing makes it seem as though you are hiding something - even if you aren't - potential buyers will be quick to pick up on it and shy away.

Once you list your business for sale, you might find that certain questions come up repeatedly in inquiries. This can serve as a good guiding point for what you should change or add to your listing.

Step 3: Screening Buyers

Another potential issue to prepare for is receiving inquiries from people who are not serious about buying. Sellers often encounter people who have the dream, but no realistic intention of going through with a deal. After all, there are a lot more people who are interested in becoming a business owner than people who are actually capable of becoming one.

It is difficult for online marketplaces to screen potential buyers, so sellers have to determine whether prospective buyers are serious or just casually browsing. The best way to do this is by selling potential buyers direct questions about how long they have planned on buying, how they plan on financing the business and how much money they have for a down payment. This kind of informal interview will allow you to determine early on whether the prospect is worth pursuing.

Step 4: Negotiating and Closing the Deal

Once you have found a promising buyer who checks out, the issue of negotiation will undoubtedly come up. Consider this: In a typical business sale, the negotiating skills of the buyer and seller can result in dramatic swings in the final selling price - regardless of how diligently the seller has prepared the business for sale. If the seller isn't up to the task, all the work that has gone into the listing can be undone in a single negotiation session.

And unfortunately, that's just what is happening to many sellers who decide to sell on their own. The good news is that it doesn't have to be that way. Equipped with a basic understanding of the negotiation process, business sellers acting independently can learn how to stand their ground and get they deserve. Other business intermediaries, including business supervisors, and/or attorneys and accountants can be valuable resources during this phase of the process.

The overarching principle of successful negotiation is doing so from a position of strength. Business sellers should come to negotiation fully prepared with well researched, documented valuation information. This way, you will have a strong basis for sticking to or very near the price you are requesting.

Listing on an online marketplace also helps negotiation in that it stirs competitive interests from possible buyers. If buyers can see there is a lot of activity surrounding a listing it will only help to create more demand for your business.

Once all the specifics have been properly taken care of, you can rest assured your business will go on successfully while you pursue ownership of a new establishment or move onto other ventures.

http://www.2misi.com/article/2012/07/a-step-by-step-guide-to-selling-online