How to Sell a Small Business Without a Broker

Selling a small business is no easy task, but it can change your life. Most owners use brokers, which is a safe bet, but it's not necessarily required. In today's post, we take a deep dive into how to sell your small business without a broker so that you keep maximum profits and stay in the driver's seat of all conversations on company valuation.

1. Know Your Worth

Determining the true value of your small business is step one in selling anywhere. Accompanied by an accurate concerning your financials, assets and liabilities, and market position. For example, you could employ income-based valuation methods or market- and asset-based approaches. Contacting or valuing online financial advisors will help you set a price for your place in the market.

2. Get your business ready for sale.

Get your business into tip-top shape before listing it. This entails cleaning up external financial records, aligning operational discipline, and possibly addressing any legacy legal or compliance items. A well-looked-after house is more appealing to potential buyers and can increase the price.

3. Craft a Long Business Profile

In simple terms, your business profile is a form of sales page that showcases the very best things about your small company. Detail your customer base, market share, revenue streams, and, most importantly, why you differentiate in the marketplace. The more thorough and convincing your profile is, the simpler it will be to track down honest purchasers.

4. Market your business

If you go the broker-free route, then marketing your business is on you. Use these resources to list on business-for-sale websites, contact industry contacts, or leverage your network. Other good methods include local business groups and social media platforms. As the face of your branding, you would also need to ensure all marketing materials represent a professional brand experience and communicate value.

5. Qualify potential buyers

The world is full of interested people who are not buyers. Qualifying buyers by asking about their financial ability, experience, and seriousness is a must. Ask for proof of funds or a letter of intent; this will cement their interest and their ability to buy your business.

6. Negotiate the sale

Things can get tricky if you are negotiating without a broker, but maintaining the value of your business while being open to legitimate offers is crucial. Expect to talk about different scenarios, like the price, how you will be paid over time, or a transition period, as well as any reluctances. Legal advice is extremely recommended with this process to keep the agreement fair and legal.

7. Draft the sale agreement.

Agreements to sell need to be prepared. The contract details all the terms of sale, which include the purchase price, payment schedule, and conditions. You should get a lawyer to draft or review your agreement to keep you safe.

8. Close the deal.

Closing: This is a critical step involving the final sale agreement, ownership transfer, and more that needs to be completed for legal and financial requirements. This could involve transferring licenses, paying off debts, and informing employees. After all is confirmed, service fees are collected, and the property then becomes transferred on paper.

9. Plan for the Transition

The grace period is extremely important if you want to ensure that the business continues to be successful. Refuse to accept a less-than-ideal payment method, including when you are familiar with the present owner and agree on terms of transferring obligations over an informed period. Such assistance could come in the form of training, bringing on board one or two large clients to get things going—anything from a referral system, etc.—or even staying on as an adviser for some time.

10. Celebrate and move on.

Ready to Sell Your Small Business? Celebrate your win, and then either get back to work creating a new business or give it all up for some much-needed relaxation.

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