Business finance Canada

BUSINESS FOR SALE Cashing In: How to Properly Sll a Business When is the Right Time to Sell? It's not fun anymore. Burnout is a very real issue , and an entirely legitimate reason to sell. You're not inclined to invest in growth. You may have no desire to make the capital expenditures necessary to take it to the next level. You feel your management skills are overmatched. Business owners sometimes realize they lack the skill set required to go further. Steps for Selling a Business 1 Determine Reasons for the Sale Timing of the Sale Owners commonly sell their businesses for any of the following reasons Prepare for the sale as early as possible, preferably a year or two ahead of time H Retirement Partnership disputes Business Valuation RIP Illness and death Determine the worth of your business to make sure you don't price it too high or too low. Locate a business appraiser to get a valuation that will bring credibility to the asking price and can serve as a gauge for your listing price Becoming overworked Boredom Preparing Documents 5g Gather your financial statements and tax returns dating back three to four years and review them with an accountant. Dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified buyers. Selling on Your Own vs. Úsing a Broker Selling the business yourself allows you to save money and avoid paying a broker's commission. In other circumstances, a broker can help free up time for you to keep the business up and running, keep the sale quiet and get the highest price Handling the Profits Create a plan outlining your financial goals, and learn about any tax consequences associated with the sudden wealth. Speak with a financial professional to determine how you want to invest the money and focus on long-term benefits Finding a Buyer A business sale may take between six months and two years according to entrepreneurs and partner of the US Small Business Administration. Try not to limit your advertising, and you'lÍ attract more potential buyers Important Considerations when Selling a Business How to Get the Most Out of the Sale You are still the boss Even though you are looking to sell your business, you will have to keep your business in tip-top shape -- efficient and competitive -- if you want to fetch the highest price Your Business Go long Keep in mind who is your ideal buyer, how much you want to make from the sale and what you need to do in order to get that price Know your numbers backwards and forwards You have to be especially on top of your financials and your illiquid assets Know what you are up against Knowing the trends of your market will give you an upper hand as you negotiate prices and contracts with possible sellers Be willing to change Guiding your business toward an exit changes priorities Make Sure Potential Buyers Are Qualified 4 Things to Do Before You Sell Your Business Previous Employment & Business Ownership Get your house in order Name and all contact information Consider the timing Educational Background Funds available to invest and sources of financing Consult with experts Show buyers a bright future Minimum monthly. income requirement Intended timeframe for completing a transaction RESOURCES: http://www.entrepreneur.com/article/225286 http://www.entrepreneur.com/article/225263 http://www.investopedia.com/articles/pf/08/sell-small-business.asp http://www.nytimes.com/2010/01/07/business/smallbusiness/07guide.html?pagewanted=all&_r=0 www.businessfinancecanada.com %24