When you are set for commercial business sales Fallbrook, the first thing you should do is bring in an experienced business broker. The role of the broker will be guiding you through the sale, managing your expectations and ensuring that you close fast and for the right price. The next thing you have to do is understand the questions that buyers will ask. Giving the right answers can help you sell faster. Here are the top questions.
Do you have reliable employees in place?
Employees are key to the continued success of the business and buyers want to ensure that you have people in place. When it comes to commercial business sales Fallbrook, buyers will need answers to these key questions:
- Does the business have many long term employees or is there a high turnover?
- Who are the key employees and what are their duties and positions in the company?
- Are the key employees likely to stay on after a change of ownership?
Needless to say, having permanent employees in place will make it easy for you to sell your business and to the right buyer. Buyers know if there are permanent employees in place, running the business when it is off your hands will be easier.
Is your product thriving or dying?
When a buyer is considering a business, they are going to evaluate the business to know if it is sustainable and thriving. The buyer will want to know the inventory levels the company maintains. Too much inventory can be a sign that the business is struggling to move products or is spending too much to maintain inventory. If your business has been struggling, now is not the best time to sell if your goal is to make maximum profit. Getting it in better shape can help sell fast and for the best price.
Do you have well documented process in place?
Well documented business processes are under-valued. When it comes to commercial business sales Fallbrook, a buyer will want a business that they can run in the absence of the owner. For this to happen, the original owner must have in place well documented processes and systems. Not having an efficient and productive process/ system in place can make it hard for you to sell your business. Buyers are interested in businesses that have efficient processes that are well-documented.
Do you have customer contracts in place?
It is important to have your attorney or business broker review your business customer contracts. Most buyers are willing to pay more if you have contracts in place. The attorney should also determine if the contracts are renewable with residual reoccurring revenue streams or not. If there is time, before you sell your business you need to ensure that the contracts in place are renewable and transferrable.