Selling a Business? Ask These 8 Questions First
If you’re looking to sell your business, you’ll want to be sure you find the right buyer and get the best price possible. First, figure out how much your business is worth by answering these 12 questions as honestly as possible. Then, contact us and we’ll be happy to help you finalize the sale!
1) What do you want to achieve?
The goal of this blog post is to equip business owners with information and resources to help them know what’s involved in selling their company. As such, this post will provide an introduction to the process of buying or selling a business. We hope that you find these resources helpful and invite you to share them with your colleagues.
2) What kind of owner are you?
I want to sell my business now because
I’m nearing retirement. I started the business and grew it over the years, but am now realizing that I’ve got other passions in life and need to pursue them. We’ve grown up, my kids are all out of college, and now we want to focus on family. My kids are interested in the business but just not at this time in their lives. Another partner wants to leave the business due to personal reasons.
3) What industry experience do you have?
I own an internet marketing agency called Logistically Awesome. I started the company in 2009 and have been running it for over 7 years. The company has grown steadily to 6 full-time employees, 2 part-time contractors, 1 remote contractor, and thousands of clients all around the world who appreciate my service. With all this experience under my belt, I’ve compiled 12 questions you should ask yourself before selling your business.
4) Why are you selling now and who are your customers?
I am ready to sell my business because I have been operating it for over two decades and want to start a new chapter in my life. I am primarily selling to businesses that need access to the functionality of this type of software. However, if any individual needs the software I may be willing to entertain those inquiries.
5) How will you price the business and what condition is it in now?
To sell your business, you’ll need to come up with an asking price. Pricing your business will depend on many factors, including what’s included in the sale, market conditions, and industry competition. While there is no one right answer, the common range is between 1.2 and 3 times annual revenues less any debt on the company. To help you get started, here are some key questions to ask yourself when pricing your business: * What are the company’s annual revenues?
6) How much cash will this business generate in the next 12 months?
Asking your business what it will generate in the next 12 months is a good place to start. It’ll give you an idea of the type of company it is, how much potential growth there is, and how valuable it is.
You should know that this question could be tough to answer and may require some estimating on your part.
7) Where does the business get its income from and how does it grow?
The income from our business comes from selling organic, vegan pet treats. We sell them in pet stores and retail outlets and at dog parks across the U.S.
8) Who are the key competitors and who are their customers/suppliers/partners?
If you’re thinking about selling your business, there are some key questions you should ask yourself and potential buyers. The more transparency in the process, the better. * Who are the key competitors and who are their customers/suppliers/partners? * What do they need to buy it? What do they need to sell it? * How will my employees feel about it all?