5 Steps to Sell a Donut Shop

sell a donut shop with sunbeltYou’ve worked tirelessly to build your donut shop, and now you’re ready to cash-in on your hard work. No matter the reason you’re selling your donut shop, if it’s because you are ready to retire or moving on to a new business venture, the process can be overwhelming. However, there are several factors that ensure the success of a donut shop sale.

How to Sell a Donut Shop

Bakeries and donut shops are an attractive small business for potential buyers because of the high-profit margins. Doughnuts are relatively cheap to make, and consumer demand is high; in the U.S., 10 billion doughnuts are consumed annually.

To successfully sell a donut shop for top-dollar and in optimal time, utilize the following steps.

  1. Develop an Exit Strategy

When it comes to selling a donut shop, the first thing you need to do is develop an exit strategy that details how you, as the business owner, will leave the business.

Consider the following questions in the planning process, as potential buyers will want assurance that the donut shop will continue to thrive without you at the helm.

  • When do you plan on making your exit? Immediately or after a predetermined time?
  • Are your retirement plans—financial or otherwise—dependent on the sale of the donut business?
  • Will current employees remain with the doughnut shop after the sale? Does paperwork need to be drawn up to ensure job security when new ownership arrives?
  • How will the transfer of ownership take place?

Address these questions when planning your exit strategy to avoid running into issues that will complicate, or worse, terminate the sale.

  1. Organize Your Books

Another crucial step when selling your donut shop business is getting all your paperwork in order. Potential donut shop buyers will want to see records of everything from tax statements to inventory, to contracts, leases and more. Consider working with an accountant or lawyer to help you organize all your legal documents.

  1. Get a Valuation for Your Donut Shop

It is important to receive a proper business valuation from third-party to determine how much your donut shop is actually worth. Sometimes, the emotional attachment that owners feel towards their business can cloud their judgment of what constitutes a fair price. Receiving a formal business valuation from an impartial entity is the best way to determine an equitable asking price.

Plus, there are many different approaches to calculating how much a business is worth, and things can get complicated. When it comes to getting a valuation, it is best to play it safe and leave it to the professionals.

  1. Address Weaknesses & Improve

Before you list your donut shop for sale, it is important that the business is the best shape possible to attract interest. Pinpoint aspects of your business that you could improve and commit to a plan of action. Any weaknesses in your daily operations, marketing strategy, pricing or facility that could be detected by a potential buyer must be improved prior to listing.

Another way to improve your donut shop and make it more attractive to buyers is to grow and diversify your clientele base. The more robust your clientele list, the stronger your sales, which will be attractive to buyers. Identify untapped markets in your area and brainstorm ways to appeal to them including:

  • Create new, specialty donut flavors and designs
  • Partner with other local businesses
  • Update your real estate or store front
  • Build out a drive thru option
  • Introduce new coffee options, including cappuccinos, espresso, and lattes
  • Focus on local marketing, especially on social media and Google
  1. List Your Donut Shop for Sale or Hire a Broker

The final step to selling a donut shop is listing the business for sale. If you plan on listing your business for sale yourself, consider listing websites or paid online advertising.

Or, to simplify the process, hire a broker. Professional business brokers have the industry experience to successfully market your donut shop. Business brokers can take care of the grunt work during the selling process, while you maintain day-to-day operations and revenue.

If you’re ready to list your donut shop, consider working with Sunbelt Business Brokers. With years of experience connecting buyers and sellers, you can depend on our business brokers sell your donut shop for the best price possible.

Plus, working with a professional business broker ensures you have an expert guiding you through every step of the way. Contact a Sunbelt office near you to get started selling your donut shop today!

Article updated on December 10, 2019.

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