3 Important Questions You Need to Ask When Selling Your Business

woman handing cash to a man

woman handing cash to a manEvery entrepreneur has a vision when starting a business. However, sometimes things do not turn out as planned and many find themselves looking at a venture that is going down the drain or something that someone else can save.

Perhaps the business has gotten bigger than they have planned and they are now more interested in pursuing other projects and feel that a new owner would be able to continue running it. Here are a few questions you need to ask yourself before selling your business:

1. Why are you selling?

This is the first and most important question that you need to answer, and this is the question prospective buyers will ask. The next owner should be able to see that the business is still profitable or is worth their investment.

Many entrepreneurs seek the assistance of business experts such as Utah Business Consultants to know more about how to sell a business in salt lake city.

2. How much can you sell it for?

Most business owners would consider the cost involved in putting up the business to come up with their price point. But what some may fail to consider are the liabilities that come with the business. Are there any existing loans and payables that the new owner will need to know of?

How profitable is the business at the time you are selling it? These are some of the things you need to know when thinking about how much you can sell a business. You might need to hire an accountant, broker, or even a lawyer for this matter.

3. How about your employees?

Most buyers keep the employees once they take over a business. However, this isn’t always the case. Make sure to talk to the prospective new owner about this and be firm should you decide for them to retain the employees.

If not, you will need to check with a lawyer about separation pay and other benefits that your employees are entitled to.

Selling your business is a huge decision, so it’s essential to plan and list your priorities. There will be non-negotiable things and those that you can negotiate. As the business owner, you are the best person to decide on these.