Life is full of choices. We make them each day. Hmmm. Vanilla or Chocolate, Vacation in Hawaii or…..well you get the idea. You’ve now made the choice to sell your business. Before you choose how to sell your large or small business, let me give some sound advice. All that money you worked so hard to earn. It’s your money. Spend it wisely. You worked hard for it.
Should I Require Collateral? – If at all possible, get some form of security to allow you have something to sell if the deal falls apart. This may be real estate Business brokers online or inventory or accounts receivable or some equipment. Always get more than the amount of the loan. Collateral never seems to sell for as much as the purchase amount.
Since this business has a high dollar cost to get into, most buyers will need to have substantial funds available or solid financing in order to buy an existing business or start one up. The money sources for this venture can be the current owner, an Internet business lender, your bank, your relatives, loans on property you own or family-money. This purchase is not a small consideration and most likely will take some kind of financing for most new owners. You should be aware of this going in and a discussion with a business broker could help you figure if it is feasible for you to make happen.
What are the details of the final sale price fee that these brokers charge that one should keep in mind? This can be considered in a number of ways. You can follow the regular manner business brokers charge: ten per cent of the first million made on the sale, eight per cent of the next, six percent of the third and four per cent of the rest.
If you have friends who are writers, have them come in for a book signing and/or talk. You will be surprised at how people will come to hear a local author. Some advertising may be necessary to gain the audience.
You would imagine that franchise restaurants records would be very accurate because the franchise company gets a percentage of the gross income. The bigger ones connect up to the individual franchise and know what is happening faster then the owner. As stated above, the only sales that can be made and not declared to the computer are catering or delivery orders, which could be done without ringing them up.
Now do this exercise using your own company as the hub. You can use relationships that you work with as spokes, then go to each of those relationships and show them how to do this using their companies as the hub. As you help other business owners come up with sources for referrals, you can combine your lists of categories and names with other business owners and start working together. And when you help each other find common ground with people on your lists, imagine how many referrals that you could get!