A business, no matter how small is a “love child” to their owners. In most cases, a business is something that the owner has nourished through the years to survive and grow.

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Exquisite Guide On Selling Your Small Business
Every business as well as every business owner has his/her own story to tell about how the business was started and
formed. To most business owners, the history of their business is very personal and has emotional investments
attached to it. A business, no matter how small is a “love child” to their owners. In most cases, a business is
something that the owner has nourished through the years to survive and grow. Although it may have not made
enough money for the owners to get rich, it is still is something very important to them.
However, there are situations where a business owner has to face the facts that the business he/she owns, incurs too
many burdens. Often, it might become hard or even impossible to operate the business and the owner is faced with
difficult decisions regarding the business’s future. Options like retirement, selling the business or change of
management should be considered. However, selling a business is not like selling a car or any other consumer
goods. The costs, as well as the method of marketing and selling a business differ greatly from selling consumer
goods. The sales process of a business is also different than a real estate sale. A business sales transaction requires
the structuring of a professional business broker to market the trade when a business owner is listing small business
for sale.
Buying and selling a business requires extensive financial analysis, market research and marketing knowhow.
However, it is fairly assumed that small business owners, have learned and developed these skills while managing
the business. It may take several months or often more than a year to sell a small business, depending on the
interest of prospective buyers. Initially, a significant planning is involved in selling the business, such as getting your
financial status in order.
This includes estimating the worth of the business to be sold. It is also necessary to hire the services of a business
broker to help with the legal paper work, marketing and promoting the sale of the company. However, a business
broker is not required if the selling cost of a business is less than 10,000,000 dollars.
Most importantly, it is of great importance to examine the receivables and liabilities of the financial statements of a
business. Especially important is the calculation of the tax liabilities. Lastly, it is common to forward an extensive
business plan to the prospective buyers to convey the overall administrative practices and business operations.
When a business is listed for sale due to financial or emotional straights of the owner and is on the brink of
bankruptcy, the Small Business Administration in the US today encourages business owners, who list their
businesses for sale, to first consider the following alternatives in keeping their business alive. These alternatives are.
1. Franchising
2. Developing partnership
3. Merging with companies of similar trade
4. Going public (forming a corporation)
5. Absentee ownership or partial retirement.
The above suggestions may help the owner in crisis to be able to hold on to his/her business. If the business is not
making enough money to survive, it may be because of mismanagement on the part of the owner and the suggested
remedy above may just be the solution.
One way to sell a business easier and to attract more buyers is to clean up financials statements. It is advised to
make financial statements and tax return of the past three years available to the buyer. Outstanding financial issues

2. need to be resolved prior to the sale of the business, especially with the IRS and other creditors because such credit
problems can tremendously diminish the trust and interest of prospective buyers.
The cash flow figures should be clear and understandable and kept separate from the extras in a business’s financial
listings, such as non-essential travel reports, personal expenses, and even personal salaries. This is because such
expenses will not be inherited by the incoming owners. A cloudy or unclear financial picture of a company could
certainly ruin the chances of a sale.
Putting up a small business for sale requires a knowledgeable amount of sales skills. Owners of small businesses
should develop a business plan to sell to prospective buyers. This marketing skill should include your businesses
financials, sales, future business plans, industry projections, recent improvement on both the technical and
operational side of the business, as well as the length of time employees have been with the company.
The length of service of employees is an attraction or possible “turn-off” to buyers. An employee that has stayed with a
company for many years proves good working conditions and credits within company and tells of the loyalty of
employees to the business. Putting value on s business for sale is a difficult yet necessary task.
This is especially true when one puts up a Small Business for Sale. There isn’t any formula that can accurately
determine the worth of any prosperous business and the best way to know the value of an enterprise is to hire a good
and professional business appraiser. These appraisers can work through the technicalities of determining the
company’s value and worth. Still, for most small businesses straightforward finances and complex business strategies
relative to the sale are not required.
As suggested earlier, the best way to handle selling a small business is to hire or get the services of a good business
broker or brokerage to handle all the details in listing a small business for sale. However, if retirement or restructuring
is an option for the business owner, it should be considered before listing a business for sale.