The decision to put your turnkey business for sale can be a life changing one. If done right, it can monetize all your long and ardent efforts and set you up for a new phase in life. Yet, it can be fraught with confusion and second-guessing. There is always the internal debate regarding being patient and holding on for a better offer versus the impatience of grabbing the offer that comes your way. While the process can be a long (and hopefully, a fruitful one), your own surety and conviction, regarding the sale, need to come out evidently clear. It is a cut-throat situation out there in the business world. Dilly-dallying and hesitation can be perceived as characteristic weaknesses or unstable business operations. Neither of these are helpful when engaging in price and terms negotiations with potential buyers.
To have a strong foothold while conducting the necessary drills related to your turnkey business for sale, you need to be crystal clear about your decision and your reasons for selling. Here is a quick guide to help you through the process and make your selling experience a rewarding one.
Establish your reasons for selling
The foremost step that you need to take is an internal one. Reflect and introspect on the reasons why you wish to sell your business. Since every individual has a unique thought process and singular circumstances, they need to be clearly established at the very beginning, before putting your turnkey business for sale. It Is not uncommon for business owners to suffer from burn out due to the hectic schedule of setting up a business. The toll of which can lead to a disinterest in continuing with the enterprise. Some entrepreneurs may become jaded by the mundane status quo and be itching to start a new venture of their own. Or, maybe the whole reason for setting up this business was for you to sell it at a handsome profit, from the very beginning. Having a clear understanding of your reasons brings firmness to your decision. This firmness leads to confidence that will come in very handy through the course of the selling process.
Gather your performance indicators
The financial and operational state of your business is another telling factor that can lead to prudent decision making regarding putting your turnkey business for sale. Take some time out to organize all your financial data in one place. These should include (but not limited to), P&L statements, current and recent gross and net sales, cost of goods sold, other operational costs and recurring liabilities, outstanding loans, taxes paid and due, supplier payable amounts, etc. while you’re at it, also gather your business operations metrics such as website traffic, cart to conversion ratio, average customer rating, returns, exchanges and canceled orders, and so on.
The merit of this exercise is to determine how well your business is doing at the present. Naturally, a successful business that is free of debts is a low risk prospect to a potential buyer. Businesses with negative trends and higher liabilities are likely to get a low market valuation, and a low price. Another benefit, that this data assessment offers, is the opportunity to find gaps in your current operations and a chance to fix them. This process improvement initiative can result in the removal of bottlenecks and overheads leading to low performance. This, in turn, can have two outcomes. One, an improved business renews your zeal in continuing running it, leading to healthier returns. Two, a better performing business gets a higher valuation and selling price. It’s a win-win for you, in either case; as long as the cost of improving the business doesn’t significantly outweigh the gains made by the sale.
Next Steps
Now that you are sure about putting your turnkey business for sale, and have made the efforts to increase the value of your business, the next logical step is to list it. There are several options and mediums to choose from, to do so. Whether you choose to sell directly on your own or via brokers, acquirers and other intermediaries, the decision is entirely yours. Make a business case and evaluate the pros and cons of each, before finalizing. While selling directly can save you on overheads such as brokerage and commissions, it can take its toll on your personal resources and also be overwhelming. Professional experts and specialists can iron out the entire process for you while ensuring the best returns.
Enter the selling process with the confidence that you have something to offer that is much in demand. Buyers and investors are always on the lookout for a successful turnkey business for sale, as they are less risky than a fledgling startup. With a proven platform and business model, already established procedures and suppliers, and an existing customer base in place, turnkey businesses offer almost immediate return on investment. This is one of the principal reasons why they are attractive to buyers and why you can look forward to getting rewarded for your years of patience and hardwork.
Read this guide to know more about how to sell turnkey businesses.
