Selling a business is a long and complex process. This is especially true for the largest and most complex in your business. It is best to consult your lawyer, sales counsel, and even consider hiring a broker to lighten the burden of the sale process. A Business Bill of Sale is a legal document that recognizes the sale and change of ownership of a business and all its assets. The Business Bill of Sale defines the terms of the sale, contains important buyer and seller information and acts as a key data set for the final transaction. Before putting the customers or the manicure shop for sale, take your ducks in a row. Make sure your books are in good condition. Gather your appointment books. Make sure customer files are up to date and completed. Be able to establish records for the past three years, including an easy-to-read profit and loss account and IRS documents (tax returns, employment records, etc.).
Trackman suggests that a simple way to rent your business is to take the crude for a year and multiply it by 33%. For example, a nail practice, which brought in $75,000 gross in one year, would be worth about $25,000 [75,000 x .33]. Many brokers set a price for a company three times its annual net (revenue minus charge). However, some brokers believe that it is really up to the market to decide the value of a service transaction. 4. The settlement of the sale, with the payment of the deposit balance by the buyer and the delivery of a sales account by the seller, is made on the date or before – Before you put it up for sale, you need documentation on everything that is relevant to your business. You need: A purchase or sale contract is used to negotiate future sales or purchases. This type of document can be used in the initial phase of negotiations to secure the assets and terms of the business, but it is only a project or a promise of what the final transaction will be. This document does not recognize any new ownership or transfer of a business. Larry Oskin of Marketing Solutions in Fairfax, Va., offers this advice to buyers: “The most important aspect when buying a client list is the knowledge of your future customers.
Customer preferences and dislikes are the most important aspects of the transaction. If you don`t know what the customer expects, you could blow the first meeting and lose the customer forever, making your investment worthless,” says Oskin. If you are the buyer, you offer new customers an introductory gift or a discount. Increase the value of the services they have already received. Throw a party or you have a new customer evaluation event. Let your new customers feel welcomed. Nail Tech Cyndi Telles recently sold its client list by sending information leaflets.
Comments are closed.