Business Expenses to Expect When Selling

We will be honest with you, selling a business if never a simple or easy process. However, the rewards are well worth it in the end if you go about it the right way. Here at Rockrose Realty Inc., we are here to help you understand business expenses. We know of all the best business for sale Tampa.

 

Are You Ready To Sell?

When deciding to sell your business, there are six key things you must know in order to [prepare and maximize your chances of success. If you get it wrong before you state, it can ruin any hopes of a sale which means many months of your time is wasted. Experiences buyers will see straight through you and the business you are trying to sell if you are not properly prepared. You don’t want your inexperience to hinder to chance that they will make an offer. They can easily pass cover your offer if they spot any red flags. We are pros at this game. We always offer the top business for sale Tampa.  

 

Things You Must Know Including Business Expenses

  • Buyers won’t pay for more potential.
    • Usually, many business owners believe they are owners of a potential gold mine, and because of this, they expect to command a high selling price based on perceived potential they have. That is not how it works. If a business is simply a concept without proven revenue then there is not any value in the eyes of potential buyers.

 

  • Buyers are interested in profits, not revenue.
    • This is another misconception when it comes to selling a business. Owners are under the impression that buyers are impressed with revenue figures. When it comes down to it the only number that truly matter is the profit a business turns. Look at this scenario:
      • Business 1: $300,00 monthly revenue, $25,000 monthly expenses, $5,00 monthly profit and $60,000 annual profit.
      • Business 2: $10,000 monthly revure, $1,000 monthly expenses, $9,000 monthly profit and $108,000 annual profit.
    • In both examples, the only number that is of importance to buyers is the last figure, annual profit.

 

  • Buyers expect verifiable financial claims
    • If you are going to claim revenue from a specific source, you need to have proof that can be verified. Think about this, imagine you are selling advertising space directly. You need to be prepared to show invoices and bank statements that show matching deposits. If you have generated revenue through affiliate offers or third-party ad networks with an online business, you must also show deposits records and even access to your accounts online. This allows both parties can see the accounts live.
  • Do not live in the past
    • If you have a business that was very successful in the past, this does not really matter. The same is said if your business has been struggling a lot in the past. Buyers are interested in recent performance and the future. They are not focused on what happened in the past. This timescale is usually around 12 months. If you operate in a dynamic space, buyer is interested in sustainability and viability.

 

  • Honesty is the best policy
    • Be upfront about everything starting from the beginning. The truth will always come out, regardless. Experienced investors understand that every business is going to have positives and negatives. There are no such things as a perfect business. As long as you are open and honest from the start, there is less risk of a deal going sour because the buyer uncovered something during due diligence that was not accurate or an instance where the trust was stretched.

 

  • Expect to answer a lot of questions
    • Businesses are forever becoming more popular every year. This is because there are so many looking to becomes independent and quit their nine to five jobs. Because of this, it has led to a lot of inexperienced buyers inquiring about business for sale. This can be a significant time drain if you don’t use a broker whose job it is to handle these annoying questions.

 

Contact Us

When it comes to business expenses, we are the perfect resource for selling your business. Rockrose Realty Inc. offers the best business for sale Tampa. Call or contact us today for more information.

By |2018-11-28T09:42:36+00:00November 12th, 2018|Categories: business for sale tampa|0 Comments

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