Some business owners plan to get rid of their businesses due to various factors. Some of these reasons include the owner becoming insolvent, the exit of an old partner, the continuous poor performance of the business, the business is unable to compete in the current market, a lack of effective future planning, or maybe they simply may want to just retire. When selling their business, an owner should be confident about selling his business and should be well aware of the pros and cons of selling the business. With that in mind, here are five effective and quick ways to sell the business if the owner is unable to sell it in a traditional manner.
- Approach the buyers who will find it hard to refuse your offer:
Approach business firms who are looking to expand their businesses and will undeniably be able to integrate your business into their own. These kinds of firms will readily be willing to purchase your business. Once you’ve decided on the selling price of your firm, be confident about it. If the owner is confident about the selling price and does not apologize, the buyer will be assured that the deal is genuine and will not be able to reject the offer. The selling price should be always genuine and well analyzed and should be based on a proper business valuation. The small business enterprises that want to develop in a particular field can be the potential buyers of your firm. Such small business enterprises are always in search of the types of opportunities that allow them to acquire synergistic businesses.
- Finding partners who could manage most or all of your business:
The owner should not be in a hurry to unburden the current load of their business. Rather they should closely examine the background of the potential buyer. The buyer should be qualified and trained in the requirements of the business organization. He should also have the appropriate managerial skills, experience, and the leadership qualities to effectively run a business. At the same time, employees should have the potential to effectively carry out their duties and responsibilities.
You can always turn to the internet and become a member of any online networking groups in order to find the perfect partner to whom you can sell your business. Such online platforms are of great help when selling a business. In most cities they have a general meetup group and in the larger cities, you can find many industry-specific groups. For example, if you have a business for sale in Houston, see if you can find an willing on any online business forums or organizations based in Houston. This way, you’ll be selling the business to a local who has the best interests of the community at heart.
- Selling the business to your current employee:
If the owner is selling their business to his own employee, this makes the transition a bit easier. Handing over the business to an employees ensures it is in safer hands as the business will be handed over to a hardworking and trustworthy employee who should be already aware of the business environment. That employee will have contacts with the required authorities and organizations. And as an owner, you would be aware of your employee’s experience and talent. This is just like a reward to the well-deserved.
- Offering incentives to potential buyers:
The owner should be ready to give discounts and offer incentives to potential buyers. This will thereby create a sense of trust and the buyer will be confident about the deal. Offering incentives and discounts will attract potential buyers. This will give the opportunity to the seller to select the perfect buyer among the crowd. But the amount the business is discounted should not be too much, or else it will create suspicion in the minds of the buyers. They’ll assume that the deal is fraudulent. Therefore, the discount and the provided incentives should be genuine enough to avoid any chaos.
- Liquidating the assets of your company:
Liquidation means calling a halt to the company and distributing the assets to claimants. Liquidation will eliminate the burden of debts from the shoulders of the owners. This is basically the last thing to be done in the process of selling your business. This is the best way if you want to exit the particular business promptly. The advantage of doing this is that once the sale of the assets is distributed among creditors, any remaining unsecured business which is not personally guaranteed will be written off. This can be a great relief to the seller of the firm.
One setback of liquidation is that it includes only your tangible assets such as machinery and equipment and does not include the intangible one such as market value, employees, and reputation.