Selling an independent retail business is like selling a house, you need to prepare it so that it looks appealing to prospective purchasers.
The process of preparing a retail business for sale can take time, depending on the state of the business. The earlier you start the better.
The keys are too leave yourself plenty of time and have a plan. The advice we provide here is based on years of service to small business retailers across many different retail channels.
In our work with small business retailers we have been able to build knowledge assets in many areas, including how to set a business up for sale, how too make the offer compelling and the business manageable and enticing. We share a glimpse here into some of our knowledge assets in this area.
Here is our overview advice of what you need to do to prepare your independent retail business for sale.
- Maximise profit. What anyone will pay will depend on the profitability of the business. While you should be on this every day, if it is a new project for you, start six months prior to putting the business on the market.
- Eliminate dead stock. It looks bad on the shelves and looks bad on the books. Purchasers should not pay full wholesale for inventory more than six months old as your poor buying or management is not their obligation.
- Streamline operations. Make the business look easy to run by ensuring it is easy to run for you. The easier it looks to run the more interesting to people who don’t understand the business.
- Make the business look appealing. Ensure displays are stunning, the shelves full and every pitch the very best you can make. You want them to want your business because they like it.
- Be happy. Owners who talk their business down will find it harder to sell the business. If you are complainer, keep it to yourself or in the family.
- Keep your social media presence up to date. Today, many people check out a business online prior to looking at it in-store. Maintain up to date Facebook and other
- Get your paperwork in order. Early on, get business documents together and check:
- Premises lease.
- Equipment lease documents.
- Franchise document.
- Supplier agreements.
- Details of any forward orders.
- Any other documents relating to the operation of the business including manuals for any equipment items.
- Choose your business broker carefully.
Success at selling your business depends in part on the work you do to prepare it for sale. Extra focus now can help you get timely price satisfaction.