How to Sell a Business Quickly? Tips for Selling Smart AND Selling Fast
Selling a business quickly may seem challenging, but it is possible. Especially if you take the right steps, have adequately prepared, and have the right partners in your corner. Here’s a roadmap for how to sell a business quickly without risking the years of work you’ve put into building your legacy.
Step 1: Prep Like a Pro
It might sound a bit strange (or even overwhelming), but preparing to sell your business can start as early as the day you decide to launch it. I get it - saying you’ve got a lot on your plate when starting a business is an understatement. But, if you're serious about building a future for your business (and for yourself!), it's never too early to start preparing for a successful sale.
However, that being said - I’d also like to highlight that it’s also never too late to start. Are you looking to sell your business in the next 6 months or year? Then, don’t worry - you can still get started today and exit happily when all is said and done. Either way, if you want to sell your business quickly, you need to ensure that it’s well-packaged and attractive to buyers. Here’s how to make your business irresistible:
- Get your financials in order: Buyers want clarity. Ensure your accounting is transparent and up-to-date. Document all revenue streams, expenses, assets, and liabilities in a straightforward way. Since the buyer may also want to finance the purchase of your business, it is also important to understand how fundable your business is. Check out this interactive SBA loan eligibility quiz to see how your business scores.
- Highlight growth potential: Think like a buyer. They’re not just buying the present - they’re investing in the future. Make it easy for them to see the potential for growth, whether that’s expanding customer bases, product lines, or operational efficiencies.
- Conduct a business health check: At SMB.co, we offer tools to assess your business's health, highlighting strengths and areas for improvement. Buyers want assurance that they're buying a solid, well-functioning operation.
Step 2: Price it Right
Think of it like selling a house on Zillow - you might have a dream number in mind, but knowing the realistic market value (with solid comps aka comparable sales to back it up) is key to attracting the right buyers quickly. One of the main reasons businesses linger on the market is incorrect pricing. If you're serious about how to sell a business quickly, start by setting a realistic price that reflects true market value and still appeals to buyers looking for a fair deal. Here are some tips:
- Know your market: Research comparable businesses in your industry and region. Tools like SMB.co’s valuation dashboard can help you assess an accurate market value, making sure you don’t undersell but also don’t overprice.
- Consider a fair multiple: Calculate your earnings and apply a fair multiple based on industry standards. Buyers want to feel confident they’re getting a good return on their investment. Confused about the methods used to value a business? Check out these amazing resources:some text
- Be flexible: If the goal is to sell fast, consider leaving a little wiggle room for negotiation. A slightly lower, competitive price can attract more interest and lead to a faster sale.
Step 3: Boost Your Listing’s Appeal
First impressions matter, and your listing on SMB.co is often the first glimpse buyers get of your business. Why does listing on SMB.co make a difference? SMB.co’s marketplace is specifically designed for serious buyers, with tools to showcase your business effectively and get it seen by those actively looking to invest. Here’s how to make your listing shine:
- Ensure your listing has a clear, compelling description: Avoid jargon and keep it straightforward. Highlight your business’s unique strengths, recent growth, and why it’s an appealing investment.
- Include high-quality visuals: Photos or videos of your business, team, or operations make the listing more engaging and help buyers visualize themselves at the helm.
- Leverage SMB.co’s buyer network: With SMB.co, you’ll reach the right buyers for your unique business and can easily manage offers within the platform. This streamlined process ensures you’re in control and can respond to serious interest quickly.
With SMB.co’s marketplace, your listing gets maximum exposure to a targeted audience, giving you the best chance to make a strong impression and attract the right buyers.
Step 4: Leverage Your Network and Local Connections
Getting the right eyes on your listing is key to finding a buyer quickly, and SMB.co offers powerful ways to extend your reach. Here’s how to make the most of your network and local connections:
- Leverage your personal network: Share your listing with colleagues, partners, and industry contacts who may know potential buyers. Word-of-mouth is powerful, and with SMB.co’s referral program, there can be benefits for everyone when referring buyers or owners.
- Tap into local connections: At SMB.co, we have relationships with the Chamber of Commerce in many communities (and growing!) as well as local partners who can help spread the word. Leveraging these connections gives your listing extra exposure and increases your chances of reaching interested buyers.
With SMB.co’s built-in tools, referral program, and local partnerships, you’re equipped to make your listing visible to the right audience quickly and efficiently.
Step 5: Streamline Due Diligence
If you’re serious when you ask the question, how to sell a business quickly, then preparing for due diligence early is important. This process, where the buyer and their team reviews all business documentation, can delay a sale if you’re not organized. Make it simple for buyers by:
- Setting up a data room: Centralize all critical documents (financials, contracts, licenses, etc.) in one secure location that can be easily accessed.
- Being transparent: Proactively address any potential issues upfront, whether it's declining revenue in a specific area or a pending legal matter. Buyers appreciate honesty, and it avoids delays later.
- Pre-signing an NDA: Having a mutual non-disclosure agreement (NDA) ready lets you start sharing documents quickly, without unnecessary back-and-forth.
Selling Smart & Selling Fast
By following these tips on how to sell a business quickly, you can attract the right buyer, avoid delays, and ensure a smooth transaction. Remember, selling a business quickly doesn’t mean cutting corners - it’s about presenting a well-prepared, appealing business that aligns with the buyer’s needs and expectations.
