According to a recent survey, 43 percent of working Americans work remotely or at home occasionally. Furthermore, the survey results showed that the ability to work from home played a major factor in employees’ decisions to stay at a workplace. As desires to work remotely continue to grow, so does the demand for home-based businesses. If you’ve thought about selling a home-based business, this may be the ideal time to get started.
Whether you operate an internet marketing business from home or an at-home accounting company, preparation is key to a successful sale. Follow these five steps when selling a home-based business to ensure a smooth transaction.
All home-based business owners should have an exit strategy in place, whether they are selling or not. If you do not have a plan detailing how and when you will exit your home-based business, develop one as soon as possible. A solid exit plan outlines topics like:
For assistance creating an exit plan, reach out to a loyal advisor or a business broker.
When preparing to sell a home business, you must take a critical look at your business operations, finances, and key employees. To do so, consider conducting a SWOT analysis to pinpoint areas that you excel in and areas that could use improvement.
Before listing your business for sale, be sure to address any opportunities and weaknesses mentioned in your SWOT analysis. Buyers will be looking for sore spots in your business, so ensure there are no weaknesses that might scare a buyer away.
Potential buyers are always interested in seeing documentation that proves the success and legitimacy of a business. Prior to listing your home-based business for sale, be sure to have your tax documents, contracts, financials, and employment agreements organized. For assistance, consider reaching out to your accountant, lawyer, or a business advisor.
Next, hire a professional business valuation service to determine the worth of your at-home business. While there are numerous ways to value a company, a professional will be able to select the method that is right for your business. With a business valuation in-hand, you’ll be able to choose a listing price and defend it.
While you could privately market your business, identify qualified buyers, negotiate terms, and close a deal, wouldn’t it be easier to let a business broker handle the complicated sales details? Business brokers are experienced advisors that can walk you through selling a home-based business from beginning to end. With a trusted business broker working to sell your home business, you can focus on day-to-day operations.
If you’re looking for a broker you can trust to sell your business, locate your nearest Sunbelt Business Brokers office. As one of the largest international business brokerage franchises in the world, we have the experience and network to sell your home-based business quickly and for top-dollar.