Apart from retirement, there are many other reasons why a person would wish to sell his occupation, such as no profit gain for a long time, and inability to bear the operational costs.
It requires many things to be kept ready beforehand. You cannot simply go to the market and deal with this selling part. You need to take care of many matters, arrange them, and step into the market to make a good deal.
If you have made up your mind in this subject, the first thing you need to do is think about your future. No doubt, you will make a good deal for your business someday, but you have to think about the future elements of your life. You also have to decide how to make a living after taking such a decision. To sort out all these things, consider going to your financial adviser, who will help you out with future monetary planning to attain financial freedom so that you can lead a happy life ahead.
Evaluation of the business
Before going on to make your work available to potential buyers, it is necessary to seek assistance from the professional evaluation services and get your work evaluated. This is done on behalf of monetary terms, the strong points and shortcomings of your sector, the current market demand for your type of work, and also the demand for the product or the service you deal with.
Such a professional evaluation will help you in determining the position of your business, and also guide you to make the necessary amendments so that potential buyers would consider purchasing it. This in turn will increase the price of your occupation. If you don't want a business broker, you should evaluate your work and sell your ideas at the highest price. This can be done by researching your business position in the industry with the help of some marketing strategies. Find out the drawbacks and the plus points of your occupation through business analysis.
Arrange all the Documents
The next step before presenting your work before the potential customers, is to get all your business related documents ready and arranged in proper order. They include your financial statements for the last 3-5 years or so, like documents pertaining to your investments, insurance claims, loan documents, and miscellaneous expenses carried out of the business revenue if any. Legal documents include the permit papers, incorporation papers, contract papers, licensing agreements, etc., and these too have to be arranged in the right manner. This would create a trust and increase the reliability of your business in the market.
Remember, first impression is the last impression. Therefore, when you are ready with the evaluation and documents, you are prepared to hit the market with your business, and hence, proper presentation is very important. Do not let the customer see chaos when he visits your office to go through your work. Let everything be at its own place and brief the staff properly so that there aren't any confusions that might lead to a termination of the deal.
Attention Towards Business
Don't forget that till your work gets sold, you are responsible for the administration and welfare of your staff. Also, other routine operational activities need to be run smoothly.
Reasons for Sale
A most important question asked by the buyer, deals with the reason for selling the business. Be prepared for such queries rather than getting jumbled up at that moment. If such a thing happens, the purchaser will surely doubt your decision, and there are chances of a cancellation of the deal.
Most buyers have a lot of money, but they might not have ample knowledge of running the purchased business. In such cases, be ready to help the new management to handle it in the initial days, and also set new management systems. Have a succession plan so that the venture is run successfully even in your absence. Once the new team gets the knack of handling the business, you can be completely relieved from it.
Disclaimer: This article is for reference purposes only and does not directly recommend any specific financial course of action.