We all know how difficult it is to build a business from scratch even it is just small. As entrepreneurs, we have once dreamed of running our own venture and once we have started running it, we want to build it to succeed. So when time comes that we fail and have nothing else to do but to give our business up and sell it to someone else, it becomes one of the most a tough situation both emotionally and financially.
Apart from emotional feelings, the most common problem small sole traders experience when selling their business is correctly pricing their business – knowing how much their business cost is one of the most challenging tasks entrepreneurs face when selling their business.
Nowadays, more and more small business owners in Perth make drastic mistakes when selling their business. They lose thousands of dollars in the process and in worse cases all their hard-earned assets eventually goes down the drain.
Before selling your own business, there are a few things you need to keep in mind. First of all, you need to determine your reason why you’ll be selling. Usually, entrepreneurs sell their business because they are already old and want to retire from entrepreneurship, some involve partnership disputes or death of a partner or partners, or you just felt bored. Meanwhile, there are some owners consider selling the business when it is already unprofitable. However this can make it more difficult to attract buyers.
Another factor to consider is timing. You need to be prepared a year or two ahead of the time. Having such time will allow you to improve your financial records business structure and customer base to make the business more profitable. This will attract your buyer since his transition to keeping the business run smoothly becomes easier.
Don’t be like Rotten Tomatoes founder Patrick Lee, who had a few regrets on selling his movie review website last 2004. What are his regrets? Click this link to find out: https://www.watoday.com.au/business/small-business/rotten-tomatoes-founder-has-a-few-regrets-on-selling-20180824-p4zzkk.html