With the right business broker San Diego by your side, you will be able to navigate the challenges that get in the way when selling a business. Business brokers have more experience and will see to it that you sell fast and at maximum profit. Even so, there are a couple of facts you need to understand before you start selling your business.
Buyers don’t pay for potential
One of the biggest mistakes business owners make is that of asking more for their business because they believe it has more potential. This will never cut it in a business sale. Potential is just a concept that has no proven revenue stream. Buyers want to pay for what they can see and prove. With that being said, you must never expect your buyers to pay more simply because your business has the potential to earn more in the near future.
Buyers are more interested in the profits
Revenue is important because it shows that a business is doing really well. All in all, it is good to note that buyers are not really interested in revenue but rather in profits. Revenue figures sound great but buyers will focus on the profit that the business turns in. Your business brokers San Diego will help you prove that your business is profitable by creating a report based on your previous financial records. Your broker will show buyers your profit numbers and not the revenue.
Verifiable financial claims are a must
One of the main reasons why buyers will want an independent business valuation report is so as to verify the claimed numbers. Business buyers are interested in verifiable proof. What this means is that you will need to present them with bank statements, invoices and all other financial records. If you cannot prove that your business is as profitable as you claim, you will end up pushing potential buyers away.
Do not live in the past
Business buyers are interested in the future of your business and not the past. The previous successes of your business are irrelevant in a business sale. If your business was successful in the past, it just shows there is a downhill trend and that will not be attractive to buyers. When considering a business, buyers are interested in the most recent performance; normally the last 12 months. They are also interested in future sustainability and viability. How successful your business was in the past will not cut it in a sale.
Selling a business is never easy. That is why you need to hire the best business broker San Diego to help with the sale. You also need to be prepared to answer a lot of questions and be honest.