Different options should be considered when thinking of the best way to sell your business. First, an owner will need review his choices and plan steps to do so. Many things will need to be considered, so it's best to consult lawyers, accountants and financial advisors before carrying out the task. Consider the personal and occupational implications.
Brainstorming the Decision
A company owner should decide if he just needs a break and have outside management take over. A logical thought will be to see if it's the right time to do so and if family and friends support this decision. If an owner goes through with the arrangement, it's best to confirm that the timing is right and to know the reason he's selling to explain this to the buyer. Think about the future of current employees to ensure their future, in case the buyer doesn't employ after the sell.
When you sell your business what is the tax responsibility? Records of sales, purchases and payments help in finalizing the deal. Notify the Taxation Office that you will be submitting a final income tax return. Contact them concerning GST, CGT and superannuation qualifications. Also, resolve any private expenses or outstanding amounts of the company.
Smooth Enterprise Shift
The selling of the business should happen when the industry is booming. But when planning the company sell, it should be well before it's on the market. Owners should make sure that company documentation is clear and concise for the buyer to take over. Communicate with clients and vendors to acknowledge the transaction and present the consumer with their approvals. The most important selling your business tips would be to make sure physical and financial business assets have been cleaned up before submitting the sell. Stock items, equipment, offices and employee role (before and after the sell) should be organized. Financial records should be updated before presenting them to the potential buyer. After this, the owner should pinpoint appropriate return to settle on an efficient price of the company.
Have an accurate succession plan in play to ensure the business continues successfully after you leave. Be aware of any legal and personal implications if handing the company over to a family member. Verify if provisions need to be made for family members that aren't active in the enterprise. A strategy should be in process for existing employees when the conversion takes place. Verify how much income is needed for when departing the business.
Executing the Sale
Enlist a business broker if you don't feel confident in selling the company yourself. Advertise the business to close networks but do not reveal the purchase. Be cautious when potential buyers respond to advertising who may not be able to continue the company successfully. Agree on a confidentiality contract before disclosing financial records. The buyer may want to negotiate conditions before completing the sale. When doing so, propose potential compromises, if need be. Then engage a lawyer to draw up a contract displaying all of the stipulations that were in agreement.
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