Are you thinking about selling your business sometime this year? For many entrepreneurs, selling a business they’ve successfully grown is an ultimate goal. In fact, according to recent data, around 57 percent of business owners aged 18 to 34 want to cash in their business instead of passing it on to their children.
Selling your company, whether it’s a huge manufacturing operation or a small independent cafe, enables you to pursue other ventures or invest in other money-making opportunities. It can help you provide for your loved ones or allow you to travel the world or retire comfortably at home or abroad.
When it comes to selling a business, Houston entrepreneurs have a certain advantage since the city is considered one of the top places in America to grow a trade. When aiming to earn a tidy profit, you’ll want a professional to help you get the most out of the sale. For this, consult a business broker to guide you through every step of the selling process.
Here are four ways a skilled broker could help maximize the profitability of your Houston business sale:
They Can Use Their Connections to Find the Right Buyer
Having the right connections is integral to every business transaction. If you’re thinking, “I’m ready to sell my business in Houston, TX now,” you’ll want the guidance of a person with significant professional and personal connections to smoothen the path for you.
Firstly, a business broker can use their accumulated database to find the best buyer for your business. This can be beneficial not only to make a profit but also if you want to protect your employees’ jobs or if you want the new owner to continue your legacy post-sale. The broker may even turn to their connections if you want a larger company to acquire your business if that’s what you prefer.
Secondly, since your broker has an extensive network of contacts, they can get you in touch with accountants and lawyers to help you develop a wise exit plan from your business. This allows you to easily transition out of the daily operations and helps new management keep the venture profitable. Additionally, this helps prevent unwanted consequences after the sale, such as bankruptcy.
They Can Help You Determine the Fair Market Value of Your Business
Some Houston entrepreneurs make the mistake of selling their enterprise for a low price since they only have a vague idea of its current value. This is why if you want to earn a solid profit from the sale, it’s time to seek the advice of a business broker.
These professionals can help determine the fair market value of your establishment or trade. This is especially important if selling a business to fund your retirement or a medical procedure. It’s also crucial since there’s the possibility of pricing your business way above its actual worth. When time is of the essence, you’ll want to avoid discouraging potential buyers from investing in your business.
To determine your business’s market value, a broker adds up the value of your venture’s assets, including the inventory and equipment. They may also calculate the value based on annual sales and do an estimation of projected earnings within the next few years. Next, a broker may look into your store or shop’s location: A strategically located business can be worth more than one in a hidden or somewhat obscure area.
They Can Market Your Business
The right marketing strategies can help ensure a welcome profit from the sale of your Houston company. Apart from using traditional marketing tactics such as telemarketing and direct mail, a broker can create a unique marketing plan focusing on additional advertising channels.
For example, they might use email campaigns, present your business through social media sites, or list it on relevant business platforms or business sales websites. Using their expertise, they’ll present your business in a way that appeals to serious buyers.
They Can Negotiate the Terms of the Sale
A top-notch business broker should have your interests at heart and do whatever they can so that you get the best deal. During the negotiation process, they’ll form a cooperative and respectful relationship with the other party while ensuring that your terms and conditions for the transaction are met. With the help of a broker, you and your buyer should be able to reach a mutually beneficial agreement.
Final Thoughts on Selling Businesses With Houston Brokers
Having a business broker by your side can be beneficial if you’re planning to sell your venture. Consult a professional broker before putting your Houston business on the market to help secure a smooth and hassle-free experience and get a good profit from the sale.
