7 Things Every Business Seller Should Know Before Listing Their Business

Selling your business requires lots of work. You’ve likely spent years growing the business from scratch, nurturing it into what it is today, and so you will want to do it justice when you sell it. But how can you ensure that the sale of your business is done with dignity and ends up in someone’s hands who can continue your legacy and help your business reach its full potential?

The steps that need to be taken to sell a business are multitudinous, but before you get started, you need to make a few considerations. This article covers a few things we think business sellers need to know before beginning the selling process.

As a company, Eden Exchange helps people sell businesses daily, and we have used our professional experience to inform the list below. Read on to learn more now.

1. Timing is Everything

You may not have considered it yet, but like every market on the planet, the business-selling market goes through ebbs and flows. This means that the time you choose to list your business may be the make or break between selling fast or your business sitting on the market for a long while.

There are a few things to consider when looking to sell your business. These are:

• Current economic conditions: With a robust economy and low unemployment, your business may sell easier due to more potential buyers having cash to spare.
• Industry: The industry your business is in will make a difference in when to sell. Different industries do better at different points in the year. Look into when your industry is growing to find a good time to sell. 
• Lower interest rates: When interest rates are lower, buyers are more likely to be able to secure finances.
• EOFY: The end of the financial year is also considered a good time to sell. As businesses review their finances, they may have the budget to expand or want to take advantage of tax incentives at this time of year.

2. Planning Your Next Move is Crucial

Due to the volume of work that comes with selling a business, you may be looking ahead to the moment of freedom when the business has sold, and you can take a few weeks or months off. However, that period will be over too soon, and you need to develop something to do.

We recommend making a plan before that time comes, even before you list your business. You will have a significant shift in income and working conditions that could lead to losing direction in life. Make sure you have a plan for what you will do when you are no longer a business owner so that you have something to focus on once you have finished relaxing.

3. High-Quality Pictures Are Essential to Your Listing

Photographs on your business listing can be the make or break between a potential buyer considering your business and not. This is because high-quality pictures can give leads a visual of what they will actually own if they make an offer.

Many business sellers don’t consider photographs a priority, instead putting more effort into the listing itself. In our experience, photos of physical premises, machinery, and other assets that come with the business can help it sell.

Factor the cost of a professional photographer into the finances you set aside for selling the business.

4. Evaluate Multiple Leads

It can be tempting to accept the offer of the first person who meets your purchase price, but considering a few leads can ensure that you find the right person to take over your business.

If you’re working with a business broker, they may be able to help you look at the pros and cons of each lead. Alternatively, you may choose to use a platform like DealXchange, which can help you qualify leads that are most suitable for your business.

While you may want to get the sale over with quickly, if you want your legacy to continue to grow, looking into each potential buyer and assessing whether they’re the right person for the business is the best thing to do.

5. Seek Professional Support

Selling a business requires lots of due diligence, and while you might consider doing it all yourself, seeking expert advice isn’t going to harm you. In fact, working with an array of professionals, like brokers, accountants, and solicitors, can ensure that you’re fully prepared to sell and don’t get caught out by silly errors.

Weigh up the cost of working with professionals against the cost of making a mistake that sets the entire process back.

6. Keep Things Confidential

Many business sellers forget that you share lots of confidential information with interested parties when you're selling. This means that competitors may be able to get their hands on your trade secrets.

To protect your business during the selling process, it is imperative that everything remains confidential. We recommend only sharing documents with qualified leads in a space that is secure, like the DealXchange platform. 

You may also want to use customised NDAs to protect sensitive information while selling. Eden Exchange offers these as part of our service too.

7. Work With a Business Selling Platform

When you really look at all the work that goes into selling a business, from the listing to the marketing of the sale to the paperwork that comes with the sale agreement, it can feel pretty overwhelming. However, there are places that consolidate all the steps necessary for selling a business into one place.

One such place is Eden Exchange’s DealXchange platform, which supports business buyers, sellers, franchisors, and brokers across the world.

Our platform is the perfect space to sell your business. We offer members fully automated lead generation to help you find potential buyers, pre-qualified leads, a fully customisable lead room, easy integrations, and support from when you list your business to when you sign the deal.

A platform like DealXchange offers an easy way to sell a business without the hassle of working with lots of professionals and qualifying all the leads on your own.

Final Thoughts

Selling a business is an enormous challenge, particularly if you have never done it before. It requires lots of time and effort, and things can take longer than you ever imagined. The few tips we have listed in this article should help you avoid common mistakes and ensure your business sells in good time.

If you’re looking for a platform to make the whole thing easier, check out the DealXchange platform and schedule a demo now to get to know the software better.

Who we are

Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.