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small business in seattle

When you've dedicated years of your life to building a small business, the thought of selling can be daunting. You may wonder if you'll get the return on investment you deserve, how to find the right buyer, and what the process will entail. We totally understand it. Hence, this piece of content.

1) Get Help from a Professional 

A good broker or adviser can help you navigate the selling process and get the best possible price for your business. They will also help you understand the actual value of your business based on considerable numbers but not vanity metrics. This includes not only its physical assets but also its reputation, customer base, and goodwill. Once you clearly understand your business's value, they will help you market it to potential buyers.

From negotiating the sale price to managing the paperwork and legal issues associated with the sale, their Help will be instrumental in selling your business. This can save you time and stress and ensure that the sale is completed smoothly and successfully.

2) Prepare to Negotiate

Preparing yourself for negotiation means knowing your business's value and what you're willing to accept. It's also important to know the other party's interests and objectives. By understanding the key issues, you'll be in a solid position to negotiate a successful sale. By being prepared, you can create a win-win situation for both parties.

A solid negotiation strategy will help you get the best price for your business. Here are five tips to help you negotiate like a pro:

Know your bottom line - What is the least amount of money you're willing to accept for your business? This can be your starting point for negotiations.

Do your research - Know the value of your business and what similar companies have sold for in the past. This will help you determine your bottom line and give you an idea of what buyers might be willing to pay.

Be prepared to compromise - This is a tough pill to swallow but unavoidable. Remember that buyers will always try to lowball you, so be ready to negotiate and counteroffer.

Be prepared to walk away - If the buyer isn't willing to meet your price, be ready to walk away from the deal. This will show them you're serious about getting your desired price.

Stay calm and confident - Throughout the negotiation process, staying calm and confident is important. This will make it more likely that you'll get the price you're asking for.

3) Understand the Tax Implications

If you are pondering selling your small business in Seattle, it is vital to understand the tax implications. Capital gains tax may be levied on the sale, and you may be obligated to pay state and federal taxes on the proceeds. It would be best if you spoke to a tax accountant or attorney to get an accurate estimate of the taxes you will owe upon selling your business. 

Knowing the tax implications of selling your business can help you negotiate a better sales price and ensure you don't pay more taxes than you have to. We suggest you check Washington State's Department of Revenue website for further info.

4) Prepare Yourself to Answer Buyers' Questions

Be sure to have a good understanding of your business's financial situation and its strengths and weaknesses. It is wise to be realistic about what you are willing to sell the business for. If you are not prepared to answer questions or provide information about your business, it is likely that potential buyers will move on to another, more transparent company.

Generally, a buyer will want to know all about the business, such as detailed information about the products or services you offer, the company's history, the current customer base, and anything else they may be interested in. You should also be ready to discuss the business's financials and answer any questions about profitability and future growth potential. You must ensure that your finances are in order. This means having all your ducks in a row regarding taxes, expenses, and profits. 

Always be honest and transparent in your responses, and be prepared to provide supporting documentation. Answering buyers' questions thoughtfully and thoroughly will help instill confidence in the buyer and increase the chances of a successful sale.

5) Have a Fool-proof Exit Strategy

An exit strategy is essential for anyone selling their business as it allows them to plan for the future and ensure a smooth transition. This means having a plan for what you're going to do with the money from the sale and what you're going to do with your time after the sale. With one in place, you can negotiate a fair price for your business, avoid potential legal problems, and ensure that your employees and customers are taken care of. With peace of mind knowing that your business is in good hands, you can move on to the next chapter in your life.

There are certain things to remember while crafting an exit strategy:

Fully understand selling a business and what buyers are looking for. 
Know your goals and what you want to achieve with the sale of your business.
Have a realistic timeline for how long you're willing to stay during the transition period.