According to the SBA, about 52% of all small businesses are operating from home. If you also own a home based business and you want to retire, the good news is that there is a good market looking to buy home based businesses. However, it is important to note that selling a home based business requires more legwork than selling a brick and mortar business. You need to prepare your home based company for sale in order to make it more attractive to prospective buyers. Here are some tips to help you achieve a successful sale.
Operate Your Business like a Real Business
As an owner of your home based business, you may not have a boss or anyone holding you accountable. In some cases, the lack of accountability leads to sloppy business operations. Almost all small business owners, not just a home based business owner, may get busy with day to day operations and let back end work slip. When you are considering selling your home based company, you should make sure that you operate it just as a ‘real’ business operates. You should prepare it in a way that if you need to exit at any point, it is ready for the new acquirer.
Keep All Documents Ready
Make sure you keep all documents in place before marketing the sale of your company. These documents many include your financials and other information that is related to your company. It is strongly advised to create detailed operations manual. This manual will help potential buyer understand how your company is operating. In addition to this, you should tell potential acquirer everything about your company’s operations, such as how you are finding new clients, how do you deal with your clients, and do you have a database of clients, etc.
Hire a Professional Business Agent or Broker
It is strongly recommended to consult with a professional business broker to sell your home company. Bear in mind that selling a home based company is more challenging than selling a traditional business, especially if your home company is a one-person operation. In this situation, you should find a buyer who has skill set to run your home based company. In addition to this, a broker can help you set the right asking price.
Offer Seller Financing
If you have found a qualified buyer, but he/she doesn’t have enough funds to make the purchase, you can offer them some sort of business purchase financing. This option is not only becoming popular for all types of businesses, but also many lenders are looking for it as a part of a sales contract. This way, you can help the potential buyer acquire your business without any hassle.
These tips should help you sell your home based business in timely manner and at the best price possible.