The best buyer for your business isn’t always local, but they certainly can be. In the digital age, the online world is your marketplace, and you can sell your business to a global audience of investors. However, many Spokane area investors like XIT are in the market to purchase great Spokane businesses and can be an excellent fit for Spokane entrepreneurs looking to exit. Regardless of where your future buyer resides, the process for marketing your business to buyers is very similar. In the following steps, we will help provide some key elements you will need to walk through as you aim to sell your business and get the best value in the transaction.
Determine the Value of Your Business
Before you find a buyer, you must know your business value first. Business value is assets minus liabilities. Your assets are anything in your business that is convertible to cash. Liabilities are legal debts.
To have in-depth knowledge about your business value, you can hire a business appraiser to determine your selling price. Many business brokers have connections with appraisers, attorneys, and accounts that can help aid in this discovery process.
Understand What Buyers are Looking For in Spokane
You may ask yourself, is anyone interested in buying my business? Buyers want a growing business with a strong cash flow that can operate without them. In addition, they want a company with growth potential. Therefore, having a proven growth plan for the next five years can assure buyers that their investment will keep up with inflation.
They also seek a business with experienced management so that the company can operate without them. Finally, they seek businesses with strong and consistent revenue that will recoup their investments later on.
Note: If you have a failing or unprofitable business, it can be difficult to sell; however, there are opportunities. Learn more about selling a failing or unprofitable business in Spokane.
Maximizing Your Business Value
If your business only meets a few criteria above, it is time to set your business goals. For example, how much money do you want to get from selling your business? What other criteria does your business need to meet?
Setting up a strong and stable management team will ensure the buyer that would-be business would be in good hands. Create a growth plan to demonstrate how the business can expand in the following years. Streamline business operations and have a solid reputation in the marketplace.
Prepare Your Spokane Business for Sale
Buyers will also look for businesses with two to three years of transparent and audited financial statements. Organizing your accounting records makes it easier for them to see your business value. In addition, having consistent monthly accounting data shows accurate business trends in your company.
We have a detailed guide on how to sell your business that details the 9 crucial steps to prepare your business for sale, which is a great resource.
Identify Potential Buyers
You can start by contacting your personal and professional networks to see if anyone is interested in buying your business. However, it would help if you exercise caution too. For example, a buyer may claim an interest in purchasing your company but may need to be financially qualified. Business brokers can help qualify buyers and protect sensitive company information. At the same time, they can oversee the sales process of buying your business.
There are a number of local business brokers who can assist you in the process. You can also reach out to companies like XIT that can help aid in the process.
XIT: Cut Through the Steps of Finding a Buyer for Your Spokane-Area Business
Finding a buyer for your business takes work, especially for those planning to exit years before. First, you will need to determine the value of your business and understand what buyers are looking for. Once you do, you will maximize your business value to prepare it for selling. Finally, you will need to qualify potential buyers so you won’t end up with tire-kickers. However, here at XIT, we buy great businesses and provide a safe exit for remarkable founders. We don’t just buy businesses. We also operate and grow them to their long-term potential. So not only will you receive exceptional rates for your business, but we will also maximize your business for you. Learn how you can sell your business to us to learn more.
