So, you’ve decided that enough is enough and you want to sell your business. You’re probably thinking of enjoying retirement or pursuing other goals such as starting another venture or becoming a monk. Whatever your motivation is, it’s ultimately your business and your choice.
Regardless, NYC selling a business is no laughing matter, and, before going any further, you should probably consider getting in contact with a competent business broker. Long Island brokers with extensive experience and credibility can point you in the right direction so that you avoid any mistakes in your business selling process. Any blunder in your sale proceedings can potentially plunge you into a downward spiral of financial and emotional havoc.
To help you identify some of these errors, we’ve compiled a list of 4 common mistakes that business owners make when trying to sell their business. Let’s unpack them, one by one:
1. Lack of Preparation
In this context, “preparation” refers to all the actions that must be undertaken prior to a sale.
If you plan to sell your house, you should undergo various preliminary tasks, such as fixing the plumbing, sweeping and scrubbing the floor, dusting, and organizing every corner so that visitors may be left with a good impression and feel enticed to make the purchase.
Likewise, business brokers (Long Island-based or from any other region) would advise their clients to make their businesses attractive to buyers through various means, such as increasing their revenue, expanding their reach, working out their staffing problems, and getting their financial situation and documentation in order. These actions would positively affect the outcome of a business valuation.
2. Reluctance to Getting Business Brokerage
Long Island is a tough place for doing business, and if you managed to jump through all the regulatory hoops and one-up your competition, you definitely know your way around the trade. However, you don’t know absolutely everything (no one does), and you may consequently be unaware of the many facets of a business sale.
Just as you would require a bookkeeper or accountant to keep track of your cash flow or your tax returns, to secure a successful deal you ought to count also on the knowledge and mastery of a good business broker Long Island has a very competitive market for business brokers, and you’re almost guaranteed to find a trustworthy business brokerage firm that you can afford.
3. Too Much Confidence
Confidence in a sale is not unhealthy. Overconfidence, on the other hand, could lead to serious mishaps, such as accepting an offer at a deep discount thinking it’s a fair price.
Just as it’s easy to err on the higher end, there’s also the risk of falling prey to undervaluation. For this reason, it’s crucial to get the assistance of a skilled business broker. Long Island brokers – especially those with a strong financial background – can offer a more level-headed approach to business valuation, keeping you from making an irreversible mistake you could regret for the rest of your life.
4. Confidentiality Breach
Being open about your business sale is almost guaranteed to produce a dent in its productivity and profitability. Staff performance and morale could take a toll, and turnover would also suffer as a result.
Business brokers are trained to prevent information leakage, especially when dealing with prospective buyers. That way, you can rest assured that whatever happens at the negotiating table remains there.Read More
You feel that it’s time to call it quits and sell your Long Island company, either for retirement purposes or to pursue other business goals.
The first thing that comes to mind is to contact a trusty Long Island business broker to begin the process right away. Still, in the meantime, there are other actions that you might want to perform in order to facilitate the sale.
Three Steps to Prepare a Sale
Let’s uncover the first three steps you need to follow in order to have a better selling position:
1. INCREASE PROFITS
The best moment to sell a business is when it is at its most profitable stage. This is what you’ll hear often from every competent business broker.
Long Island is a particularly difficult market to tackle, which is why you ought to try a bit harder to position your company so that it appears on the top of the list in terms of sales.
A thriving business is the dream of every avid investor. A business with poor or stagnant sales will not arouse the interest of anyone, much less a qualified buyer, which is why you have to find methods to stimulate sales before taking your business to the marketplace. A good Long Island business broker would probably advise you to do the following:
* Offer bonuses and incentives to employees and usual customers for bringing new clients.
* Improve the sales department by adding more personnel.
* Register every sale, including those that are paid in cash and not easily traceable.
* Boost the marketing campaign for further brand recognition.
2. Try to Sell off Inventory
Take the necessary actions to empty your shelves as much as possible before putting your business on sale. No buyer wants to deal with old inventory that might not be able to be sold after the deal closes. The best option is to turn that remaining stock into cash, even if that means lowering the price a bit.
The same goes with old equipment that is no longer being employed in the business’ daily operations.
3. Get Less Involved
It’s often said that you should not detach from your business before selling it (and even a while after). This is still applicable, but there are nuances you may want to consider.
A business managed by a single individual is at a rough spot when that single person ceases to operate or leaves. Buyers will not find that very convenient. In that regard, you should consider relying more on a liable and competent management team that can keep things running smoothly during the transaction.
You would still be capable of supervising the whole operation without having to get too personally involved.
Get Help From A Qualified Long Island Business Broker
A good Long Island business broker might not be wholly equipped to boost your sales or manage your company (or at least not directly). Nevertheless, you should be able to count on his/her advice and assistance throughout the whole ordeal of selling your Long Island venture, even at the very first stages of the process.Read More
Deciding whether or not you can buy or sell businesses can vary for different reasons. Firstly, it may be possible that you merely just want to venture in a new business direction or that certain changes in your life do not seem to fit with your previous goals anymore. Nonetheless, purchasing or selling a business will be one of the toughest decisions you’ll have to make.
When you finally decide that it’s about time to sell your business, you’re usually left with two options: either you use targeted advertising and sell it through your personal network of contacts or consult a Long Island business broker for help.
While it’s true that you can sell your business without needing external help, hiring a business broker will make the process worthwhile, especially if you don’t have the luxury of time to monitor every single thing. Moreover, whether or not the outcome of your transaction is successful will highly depend on the business broker long island you choose.
If you’re particularly searching for Long Island business brokers, it’s essential that you hire the one that best caters to your needs. Here are five tips that can help guide you so you can arrive at the most suitable decision.
WHAT DOES A BUSINESS BROKER LONG ISLAND DO?
A Long Island business broker generally refers to a professional agency or an expert whose primary role is to assist in purchasing or selling a business. They usually aid their clients to secure the best price for your business and are also responsible for turning in the required paperwork, alongside completing the licensing or needed permits.
Transferring the ownership of a business can be a complicated and lengthy process. For this reason, hiring the right long island business broker especially helps if you’re the one doing the selling. Not only do they aid in recommending a reasonable price value for your business, but they also assist in screening potential buyers at the same time.
TIPS IN HIRING THE BEST BUSINESS BROKER LONG ISLAND
As you may already know, there are plenty of Long Island business brokers to choose from, and coming to terms with the right person to hire can be a daunting decision. However, you don’t have to fret. Here are some necessary standards to keep in mind when choosing one with whom you can entrust your business.
1. CONSIDER THEIR INDUSTRY KNOWLEDGE
More often than not, top-class business brokers will already have enough experience regarding Long Island business brokerage. For this, the best ones will have already worked with plenty of businesses over time.
Ask your prospective Long Island business broker what specific type of businesses they handle regularly. Keep in mind that working with one with ample industry knowledge can lead to better outcomes for your business.
2. RELY ON ADS OR REFERRALS
One of the tried-and-true ways to find a long island business broker is through referrals from trustworthy contacts. Your colleagues, friends, or relatives may be able to recommend you a certain business broker that they’ve successfully worked within the past.
3. INQUIRE IF THEY HAVE CONNECTIONS
Apart from the business broker, you’d undeniably need other professionals to guide you throughout this journey. Some of which include attorneys, accountants, and bankers, among many others. Selecting a business broker with connections with such people means that you won’t have to splurge on resources and time locating them on your own.
4. ASK ABOUT THEIR EXPERIENCE
Of course, experience in the industry will always be a great asset in whatever profession. Because of this, remember to inquire about their years of experience within the industry, especially since having enough experience means that your prospective business broker long island knows what they’re doing and have been doing it for a long time.
Even so, it’s not enough that the broker has already been in the industry for many years if they haven’t executed quite a handful of deals. It’s better to work with someone who has worked and sealed successful deals with several buyers and sellers.
5. EVALUATE THEIR PUBLIC REPUTATION
It’s always a smart move to learn more about your broker’s reputation, and a great way to do this is to ask for a list of clients that your potential long island business broker has already worked with. Here, you can follow up with a few of those clients and ask what they can say about the broker. If they generally seem satisfied with their services, then that means you’ll likely have a good time working with them.Read More