Right from the beginning of a new business venture, whether you have just started a business or you are the new owner of an already established business, you should always have the sale of the business in the back of your mind. Even if you have no intentions to sell your business, sometimes it might be worth while putting it on the market just to see what you would get. Advertising it for a price that would be enough for you to walk away and start a new business venture. You may just get it! Most people in the market to buy a business will ask for 2 to 3 years of financials, but this is not also the case.
One of the more common reasons a business owner will decide to sell their business is because they are just looking for a change, a fresh start. The drive and passion to succeed with the business is not there anymore. When running your own business most people will get itchy feet after about 2 to 3 years of trading. This is usually when they start to run out of steam and start snooping around for a fresh start. They become bored with the daily routine and operations of the business. This is also a good time to sell. If you feel that your business deserves to be owned and run by someone who will have the right attitude to take your business to the next level, then you might want to advertise your business for sale and see how much interest it will generate.
In saying this, retirement is another popular reason behind a business sale. This is a great time to sell because you are selling for a legitimate reason. If you are selling your business of your own accord will be a smoother transaction then when you are selling your business due to financial reasons. An experience business buyer will see this as a weakness and really try to take advantage and purchase your business at the cheapest price possible. If you are desperately in need of the sale, then you might just have to bow down the potential buyer.
The next move is to have an accountant value your business. An accountant will be able to accurately determine the value of your business based on your profit and loss statements, assets, stock on hand and also goodwill. Try not to get too emotionally involved when valuing your business. It is common knowledge that a business owner will usually over value their business and potential buyers will undervalue the business. Try to be as realistic as possible with your asking price. Being reckless with your valuation could see your business sit on the market for a long time.
Search business selling at http://www.business-trader.com.au - Australian business for sale Classifieds