Selling a business can be overwhelming, especially when it’s something that you’ll likely only tackle once as a business owner. It involves critical decisions, a deep understanding of your market and top negotiation skills — especially if you want to close the deal fast.
So how quickly can you sell a business?
On average, it takes between six to nine months to sell your business, so it’s important to manage your expectations.
Selling your business quickly often comes down to market conditions, industry trends, the size and complexity of your business, and many other factors.
To get the best chance of selling your business fast, we’ll be sharing five steps to help you sell your business as quickly as possible.
5 steps to sell your business fast
If you find yourself googling, “how to sell my business fast”, you can’t follow conventional business selling advice like waiting for the right time.” You need to be proactive to find buyers and close the deal.
The following five steps can help you do just that:
1. Make your business attractive to buyers
How do you sell a business proactively?
While finding the right buyer is important, you'll need to make your business attractive to as many buyers as possible.
How can you do that?
One way is to improve the visual appeal and presentation of your business by:
- Refreshing your branding.
- Renovating your physical premises or improving the design, function and reach of your website in the case of a digital business.
- Using stylish uniforms.
- And improving your front-line employees’ customer service.
Besides that, you can focus on improving the financial standing of your business by aggressively cutting costs while ramping up sales and marketing.
2. Leverage your network
One of the best ways to sell a business fast is by leveraging your network.
As a small business owner, you likely interact with partners, suppliers and other entrepreneurs unrelated to your industry through events or your local chamber of commerce.
You can use this professional network to identify potential buyers or referrals. Finding buyers in your network can often lead to faster sales through direct or mutual trust.
Additionally, if you’re active on social media, you can ask your followers to share that you’re selling your business — if you don’t want to keep the sale confidential that is.
3. Offer flexible payment options
Buying a business isn’t cheap, so another way to make your business more attractive is by offering flexible payment options.
This makes your business attractive to buyers who may be cash poor, are just getting started or simply don’t want to tie up all their capital in a single investment.
Typically, this means offering a payment plan (aka seller financing) to your buyer spread across several years. But you could even swap your business for physical or digital assets if the buyer doesn’t want to take on a loan.
4. Expedite the due diligence process
Any buyer that’s interested in your business will want to see your financial and legal documents to ensure they know exactly what they’re purchasing.
Since this process can be difficult and time-consuming, it’s a good idea to make your documents easily accessible. Additionally, you want to proactively address any concerns or questions that may arise.
For example, if the last few months of business have been rough, make sure you explain why before the buyer questions you. If you have an idea of how to turn things around, share that information as well as it illustrates the company’s potential.
You can also organise a third-party audit to verify what you say is true.
5. Use the expertise of a small business broker
Small business brokers specialise in both the sale and purchase of companies, meaning they know how to sell a small business quickly.
Business brokers have extensive networks as well as the necessary expertise and resources to position your company as an attractive investment and help with any legal aspects of the sale.
Additionally, they can help with negotiating the deal which is a crucial part of quickly selling your business.
If this option sounds good, you can find a broker on our website.
FAQs on selling your business quickly
How long does it usually take to sell a company?
The time it takes to sell a company in Australia can vary significantly depending on factors such as the size of your business, industry conditions, market demand and the negotiation process.
On average, it takes between six to nine months to sell a company in Australia.
How do you value a business?
In Australia, you can value your business using various methods such as the:
- Market Approach: Compares your business to similar ones recently sold in the market.
- Income Approach: Estimates the value of your company based on its future earning potential.
- Asset Approach: Values your business based on its tangible and intangible assets.
To figure out the best approach for you, you can read our business valuation guide or consult with a professional valuator or accountant.
How do you sell a business quickly?
To sell a business quickly in Australia, you should:
- Ensure your financial records and legal documentation are accurate.
- Set a competitive asking price.
- Employ aggressive marketing strategies.
- Leverage the skills of a business broker as they know how to sell a company quickly.
How do you sell a business without a broker?
To sell a business without a broker you should:
- Ensure your business documentation is in order.
- Figure out a fair, but competitive asking price.
- Market your business through online business marketplaces and your professional network.
- Learn how to negotiate with potential buyers.
- Consult with accountants and lawyers to assist with the sales process.
Can you sell a failing business?
Yes, it is possible to sell a failing business in Australia, but it can be challenging.
Here’s how you can do it:
- Figure out why your business is failing and either start solving the issue or create a plan for the buyer to follow.
- Highlight the company’s potential and aspects that may appeal to buyers.
- Don’t hide the fact that your business is declining.
- Set a fair price that reflects the state of your business.
- Leverage the skills of professionals such as accountants, brokers, and business consultants.
Check out our guide on selling a failing business, if you’d like to learn more.
The bottom line: selling your business quickly
When it comes to selling your business quickly, it’s all about compromise and preparation. The faster you want to sell your business, the more likely it is that you’ll have to meet the buyer’s demands rather than wait for them to accept yours.
But, if you follow the five steps we shared in this guide, you’ll increase your chances of selling your business quickly.
If you want to learn more about selling your business, check out the seller's articles on our website.
But remember, selling a business quickly isn’t always easy, so be prepared to work just as hard as you did growing your business.
@Be_theBoss