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| What Do I Need To Consider
Before Selling My Business? |
| Posted: 4-05-2006 |
| Author: Peter Arkwright |
The process of
selling a business is not as straight-forward as you may
imagine, especially if you are looking to get the best
possible price. Your business may have been set up in
a formal and structured way; this will be far more attractive
to any potential purchaser more than one which is run
in a more 'personal’ way.
The best time to implement these structures and procedures
in place is when the business is first set up - of course,
you can always modify them as the business develops and
grows but spending time on this area at the start will
pay huge dividends in the future.
One of the main problems with internet businesses is that
they are generally so 'personal'. This means the site
owner has developed a business based around his/her own
experiences and knowledge, throughout the site there will
be personal traits. In the past I have been guilty myself
of developing my own sites from my own experiences and
this is reflected heavily in the website content.
Having a personal website may be good for you financially;
however it could be problematic when you try to sell the
business. The manner in which your site has be personally
developed may lead you to carry out a major revamp of
the site and at worst might actually affect the sales
of the business.
I would advise anyone to set up an online business in
a 'corporate' manner - this would mean that the websites
gave the impression of having a company and losses the
personal touch. However, if I had done this at the start,
would any of my websites be as lucrative as they have
been? My feeling is perhaps not - I know that many people
have purchased from me in the past because they can relate
to the situations that I found myself in as they are going
through a similar situation also. Had my sites been a
representation of a faceless corporation, then maybe my
customers would never have become customers in the beginning.
I am unsure what is the better approach - personal or
corporate - there are advantages and disadvantages to
both. If you are looking to keep the business short term
my advice would be:
1. Maintain proper financial records – No one is going
to buy a business without scrutinising your accounts.
2. Open a business bank account – An accountant should
advise you of his, as business revenue has to be separated
from non business finances.
3. Make sure your tax returns are submitted on time.
4. Have a knowledge of SEO (Search Engine Optimization)
and always try ahead of the competition.
5. Speak to a broker and get their advice on how to maximise
your potential to sell the business in the future.
Don’t get too attached to your business, otherwise letting
go could be difficult.
http://www.bizseller4u.com
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