What You Need to Know Before Selling Your Business
Selling a business is never an easy choice. For most business owners, the decision to sell only comes after months and in some cases years of deliberations. Passing your business on to a new owner can feel a bit unfamiliar, but this is usually for the best. Before you can sell a business in Rochester, MN, you will need to do your homework. Working with a business broker is a great way to avoid making common mistakes with this process. Read below to find out what you need to know before selling your business.
Profit Matters More Than Revenue
Some business owner mistakenly think they can get top dollar for their business just because it has a high revenue stream. While this is a great selling point, most people will want to know a bit more. When you decide to sell a business in Rochester, MN, you need to be able to show prospective buyers how much profit you are making. If the business has a high amount of overhead, it may be hard to find a buyer who wants to purchase it. Simply have a large revenue stream will not be enough to entice buyers and get a business sold, which is why you need to focus on being profitable.
The Past Doesn’t Really Matter
Another common mistake business owners will make when trying to sell a business in Rochester, MN is focusing on past sales. A buyer will not care about how much you made 3 years ago, they want to look at your current numbers. Usually, a prospective buyer will want to see what your sales were in the last 12 months. This means you need to start working on getting sales at higher levels at least a year before you want to sell to ensure buyers are interested.