How To Sell A Grocery Store
Grocery stores were generally unaffected by the health crisis that spanned from 2020 to the time of writing. With a market size of over $750 billion and roughly 2,800,000 employees, grocery stores in the US have become very solidified within the current market paradigm and may excel in comparison to other industries in terms of business valuations. Long Island grocery stores are no exception.
With that said, running a grocery store can be a tiring matter due to the nature of the activity. If you are a grocery store owner, you could be thinking that maybe now is a good time to settle for a more “laid-back” venture or simply enjoy retirement.
HOW TO SELL YOUR LONG ISLAND GROCERY STORE
Below, you’ll see a compiled list of actions that you would have to perform in order to ensure a smooth sale:
1. PREPARE THE EXIT
Before you place a price tag and contact potential investors, you need to make sure that your operation won’t get affected by the sale process. For this reason, you would have to evaluate:
* How long you plan to stay in charge.
* Whether the staff will remain after the new owner takes the helm.
* Whether your managers are suited for keeping the store afloat after you leave.
* How the transition of ownership will come about.
* How the partners and distributors will react to this change and whether you’re able to have them acquainted with the new owner.
By assessing these bullet points beforehand, you’ll be equipped to tackle any issues that may arise in the future as you reach the negotiating table.
2. GET YOUR FINANCIAL DOCUMENTS READY
For the purposes of a future “due diligence”, tax report, and business valuation, Long Island grocery store owners ought to gather all the pertinent documentation, including financial statements, business records, previous tax reports, contracts with suppliers, and other similar paperwork.
This will allow all the parties involved in the sale to get an unvarnished picture of the store’s profitability, pricing policies, and gross margins.
3. TACKLE ALL POSSIBLE ISSUES
Clean up, get rid of all perishable merchandise in your existing inventory beyond the “best by” date, and be mindful of customer satisfaction. By doing this, you’ll be revamping the results of an eventual business valuation. Long Island customers are very picky when it comes to grocery shopping, and this should be prioritized even further as you put your store for sale.
There are other actions you may additionally take to improve your position, such as getting more active on social media, adding new features (delivery options or new payment methods), including new products, and many more.
4. GET A PROFESSIONAL BUSINESS VALUATION
Long Island business brokerage firms should be of assistance in this regard. Business owners are prone to get their emotional attachment factored into their price evaluation, which is why it’s important to rely on a trustworthy third party that is wholly trained to perform an accurate and meticulous business valuation.
Long Island grocery stores struggle in a very competitive market. A learned professional can do a thorough market analysis and dissect all the metrics so that the final price of your grocery store can arouse the interest of qualified investors.
5. LIST THE BUSINESS
After everything is said and done, you may proceed to list your business for sale. Usually, you should be able to do an online listing (in exchange for a fee, nonetheless).
Alternatively, you could have a business broker take all the burden of finding suitable buyers and doing all the marketing while you keep an eye on the store’s day-to-day operations.
Apart from their ability to do business valuations, Long Island business brokers can grant your business a lot more exposure through their broad network of qualified clients and contacts. They may also screen out any “window shopper” that could potentially drive your precious attention away from real prospective buyers.