Selling a retail business is like selling a house, you need to prepare it so that it looks appealing to prospective purchasers. Selling a newsagency is more challenging because of assumptions out there and changes in what a newsagency is can could be.
Here at Tower Systems we are often asked for retail advice beyond our POS software. Preparing a retail shop for sale is one example of advice we are asked for. We have developed a package of information to help small business retailers as they navigate this. What we share in this blog post today is some of the information we have put together.
Tower Systems POS software customers have access to this and more business management advice and insights.
- Make it look and feel appealing. While there are people who will look for a challenge (opportunity). Most buyers will want two see a retail business they understand and feel they can run.
- 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.
- Maximise profit. What anyone will pay will depend on actual profitability of the business.
- Be happy. Owners who talk their business down will find it harder to sell the business. You never know who is shopping your shop and the broader interest they may have.
- 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, Instagram and elsewhere.
- Get your paperwork in order. Early on, get business documents together:
- Premises lease.
- Equipment lease.
- Employee records.
- Product forward orders.
- Franchise documents.
- Supplier agreements.
- Details of any forward orders.
- Any other documents relating to the operation of the business including manuals for any equipment items.
- Choose a broker for your circumstances.
Success at selling your retail business depends on the work you do to prepare it for sale. Focus months, even a years, out can make for an easier and better sale.
Get it right and you can expect to make more than you might have thought possible.