Owning a business is a dream for many people. while owning your own business or franchise can be a great way to build a great career, there may become a time in which it makes sense to sell your business. When selling a business, you can end up making a significant amount of money if the business was successful and you sell it the right way. When you are looking to sell a franchise business, there are several tips that you should follow that will help you get the best price possible.
Account for Everything
When you are selling a franchise business, one tip to follow is to account for everything that your business owns. When you are selling a franchise business, you should make sure you factor in all of the accounts receivable, inventory, equipment, franchise fees, and other assets that you have had to pay for over time. You should also carefully factor in any building improvements that the new owner will be benefiting from in the future.
Provide Your Expertise
If you have been a successful business owner for a long time, there is a good chance that the majority of the success of the business is due to your presence. When you are selling a franchise business, the buyer will also be aware of how your presence and skill set have helped the business to grow. because of this, you should offer a buyer of the business the opportunity to hire you on a contract basis for some amount of time. This will help to ensure when you are selling a franchise that there is a smooth transition and that the new business owner is able to learn all of your tricks and successful processes. Business buyers will likely be willing to pay a premium for this and you can also earn a consulting fee in the interim time.
Provide Reasonable Projections
When you are selling a franchise, the majority of the value of the franchise will lie in the past performance that you have had. However, there is always room for improvement and showing a business buyer of future projections could help to improve the value of your business. While these projections will be taken with a grain of salt, showing that there are additional ways to earn revenue, cut operating costs, or improving market presence could help to improve the overall value of your franchise and will result in a higher sales price.
Open Marketing and Sales Process
Finally, when it is time to try and sell your franchise, you should also make sure you have an open marketing and sales process. While you could try and sell your business privately to avoid the hassle of using a brokerage firm, you are limiting the amount of people that will ultimately look at your business as an acquisition opportunity. Because of this, you should try and make sure that you have a full impressive marketing book to attract more buyers.