Steps to Successfully Selling Your Business

Maybe you're ready for your first real vacation in years. Or maybe a significant financial upsurge or downturn is signaling that the time is right for you to sell and move on. Whatever your reasons

for wanting to sell your business, it's important to understand that in the weeks and months to come you'll be spending an extensive amount of time explaining to prospective buyers all the ins and outs of your particular business. Keep these important steps in mind before you begin the process:

Set a Selling Price

Before you sell your business you must determine your asking price. If the price is too high, you may not attract any buyers. If you set the price too low, you may wind up settling for a price well below what your business is actually worth.

There are several methods you can use to determine a selling price for your business. One method is to make your determination based on the value of your company's assets, plus an additional sum for the goodwill your business has developed. Another method is to investigate what comparable businesses in your region and industry have sold for recently. In some industries there is a formula for determining the worth of a business, such as a value based on the units sold annually or a multiple of average earnings.