It’s very hard starting a business. It’s even harder sustaining it. A business needs tenacity, a strong will and taking the emotion out of the equation. A lot of people aspire to start their own businesses, but they don’t have the right drive, or network or the funding.
For people who are in this situation, they have another option to fulfill their dreams. They buy existing businesses for a price and all they have to do is manage.
In this article today, we’ll teach you about how to sell your Singapore business to the right people and get a good price.
First of all, here are some important points before delving into selling your business.
1. You will have an advantage while selling only if your business makes profits
2. Your books of accounts should be intact so that the buying party can complete their due-diligence quickly.
3. Having a business advantage (Moat) can definitely improve the value of your business and gives you an advantage during negotiations. What we mean by a business advantage is having patents, trademarks, first mover advantage, unique product, location advantage and so on. Try to find out your business advantage and add it during the negotiation talk.
Also read:3 Ways to Retire Rich in Singapore
Selling your Singapore Business
People are always looking for businesses to buy and if you are in the right place, you can hope to get a good buyer. If you are a website owner and want to sell your website based business then you can look at Flippa which is a marketplace for buying and selling websites and apps. As this is a marketplace, people are automatically looking at your sale listing.
In other cases, here are a few strategies
1. Identify who you want to sell it to, who is more likely to purchase your business. This will help you narrow down your channels.
2. If they are a business, then reach out to them via Linkedin, and if you have common contacts, ask for an Introduction. When you come from a position of reputation, you can always get a higher price because the common contact has vouched for you, your business and your integrity.
3. For companies where you don’t have a common contact, cold mail them and tell them about the opportunities of buying your business. In these situation, one needs to be careful so as to not sound desperate. Talk about why you are cold mailing them and state reasons like “There’s common vision for both companies etc”
4. Get to business events, Industry events where you find a lot of business owners from the same Industry. This is a great place to introduce yourself and talk about your company and your intention to sell. You can literally start a bidding war in events like this. To be able to sell your business successfully, your pitch should be intact. Give them affirmation that the Industry is moving forward and how purchasing your business will get them higher.
5. You can place advertisements in local newspapers and in your locality, if you run a location specific business. Make sure to have something catchy in the advertisement to entice the buyer.
6. Register your business in sale of business websites. Businesses actively look out for other businesses that they can acquire.
7. If your business has clients, and if they have been long-term clients then get them to speak to the potential buyers. If your clients can talk about your service quality and vouch you, you make a stronger case for a good value.
Also read: Advice from the most successful Shark Tank investor – Mr Wonderful
Tips on making a good Impression
When selling a business, you should never go with a desperate mindset, one should always be in a position of strength. The reasons for selling the business also should be clear. Especially when the business is doing well, you reasons should be clear. Don’t give the impression that the business is doing badly.
Selling a business isn’t all that difficult especially if you have what the buyer needs. If you set-up everything in a way that they know is a smooth transition, then it goes a long way in closing the deal soon. Also, clearing up your business and making it more transparent also builds trust with the potential buyer. If you are truthful about your books of accounts, your sales, clients and everything else, you can negotiate hard to get a good deal for yourself.
The simple take away from this is to put yourself in the shoes of the buyer and address their concerns.