Selling a business can be daunting for many business owners, particularly startups. It can be frustrating to get the right buyers, but understanding the process will go a long way. Are you struggling to sell your startup business? Read on for great ideas.

1. Decide to sell the business.

The first step to selling a business is deciding to dispose of it. This may take some months, depending on the relationship with clients, suppliers, and employees. Don’t rush the process, though! Contact professionals to guide you or sell on your behalf.

2. Put your records & books in order

Most startup businesses need to be more compliant when it comes to bookkeeping. Being disorganized may create doubt and put off clients, minimizing the likelihood of a sale. For this reason, have your financial statements and accounting books, too. Also, we conduct audits of our financial statements. This way, you will point out any weaknesses in your financial operations, allowing you to fix this early enough.

3. Set a selling price

How you value your business is more than the furniture and equipment owner. Gather adequate market information, and hire a broker to help you.

The professional will estimate your business's value and will require some documents to do this. These include a list of assets, tax returns, and a profit and loss statement.

Moreover, keep on growing your business. Potential buyers look closely at startups' growth potential before making purchases. For excellent results, consider Nash Advisory business sales; they are faster and involve minimal risks.

4. Create a contact list

Create a list of potential clients and focus on companies with strategic interest in your business. Also, focus on companies dealing with similar products or technology, which will make selling easier. Include public and startup companies in your contact list. Most public firms offer immediate cash, while startups offer more stock.

5. Market your business

Now that you have a list of the identified contacts, it’s time to market your business. You can employ various techniques, including online marketing, E-mailing, and adverts.

Send short emails to different companies and use the Internet; you’re likely to locate most potential buyers online.

6. Screen& Meet up with potential buyers.

You expect many calls from buyers and should take all buyers through a detailed screening process. Conduct a thorough background check to determine whether they meet the criteria. This involves phone interviews, financial background checks, and criminal record checks. Also, sign a confidentiality agreement with all eligible buyers. Involve a business broker; they have adequate profiling skills to help you get the most suitable buyer.

7. Conduct negotiations & Present the business

Selling a business involves a lot of negotiations. The deal should meet the needs of the buyer and the seller alike. The terms to negotiate are;
  • Price
  • Seller financing- down payment and interest
  • Who pays the commission?
Engage a business broker for successful negotiations. The professional will structure the deal and sign all legally binding documents.

Final thoughts

Most buyers are hesitant to buy a startup business, making it harder to sell your business. However, selling startups is easier if you engage the right team. Seek guidance from business advisory firms and employ an experienced broker to help you.