Have you had a good run with your retail business, but you’re ready for something new?
Maybe it’s time for you to retire, maybe you’ve decided to focus on other things, or maybe your store just isn’t making as much as it used to.
Selling your retail business can feel like a daunting task.
From finding the right buyer to making sure you’re maximizing your final period of sales, there’s so much to consider.
Here at Silverman Consulting And Retail Services, we offer
We can help you hammer out the details, including helping you run a retail store retirement sales event to help position you as strong as possible for the next phase of your life.
We’re sure you still have lots of questions, though, so let’s talk more about the frequently asked questions when it comes to selling your retail business.
What Is The Best Time To Sell My Retail Business?
If you’re thinking about selling your retail business, you’re probably wondering about the best timing.
Basically, you’ll want to get ahead of things like any financial issues or personal or health issues that may interfere with the sale.
It’s good to start planning for your sale three to five years out, with more “active” prep happening in the two years before.
Typically, once you find a buyer, a sale of your business will take six to twelve months to get going.
There may be a transition period as well, so this two year period gives a good buffer to account for these factors.
You’ll need to time to prepare your employees and your customers, prepare your financial records, consult with your retail insurance, and wrap up any other loose ends.
How Do I Know How Much My Retail Business Is Worth?
You’ll be looking at things like market capitalization and book value to make this determination.
Those won’t be the only factors, though, as you’ll also be looking at earnings multipliers and various other metrics.
Ultimately, your business is worth what a buyer is willing to pay for it.
There are some key components in determining your business’ worth, which include marketplace demand, earning power, and the specific assets included in the sale.
Demand will be determined by marketplace data, giving you a range at which your business might be valued.
When it comes to earning power, it’s different for larger and smaller businesses.
Larger businesses will use a calculation based on EBITDA, or earnings before interest, taxes, depreciation, and amortization.
As a small business owner, you’ll use a different metric and go by SDE, or the seller’s discretionary earnings.
How Do I Find A Buyer For My Retail Business?
Finding the right buyer for your business can be one of the most difficult challenges you’ll face.
Make sure you have an adequate advertisement budget if you want to attract potential buyers, as this is the part that often takes one to two years.
Once you have a few bites, there are a few things to keep in mind.
Always continue advertising until you have a few buyers who are potentially interested in case one falls through.
Be consistent about the contact you’re keeping with the potential buyers, and find out if they’re qualified for financing.
Make sure you get any agreements you’re making with your buyers in writing.
How Do I Make My Retail Business More Appealing To Buyers?
It’s imperative to keep confidentiality and discretion as you sell your retail business.
To make your business more appealing to buyers, you’ll want to make sure all your records are clean and organized.
Hard assets and a steady record of profits will make the sale all the more attractive.
A propriety product or line can make your business especially eye catching, as will a strong position within your market.
One of the greatest gifts you can give yourself is having detailed accounting records, as this will help you maximize your business’ value.
Why Do People Sell Their Retail Businesses?
There are quite a few reasons you might consider selling your retail business, and you’ll want to be prepared to answer that question for potential buyers.
The reasons could be personal – maybe you’re ill, overworked, or it’s just time to retire.
You could be getting into partnership disputes that you no longer want to deal with, or you could simply be bored and looking for your next venture.
Whatever your reason for selling, if you have consistent income figures and a strong customer base, you’ll have an easier time attracting buyers.
Should I Have A Sale Event For Selling My Business?
If you’re considering selling your business, it’s an important time to plan a sale event.
Why?
Because you’ll want to do everything you can to increase your sales revenue and reduce any excess inventory.
Remember, you want your finances to look especially enticing if you’re preparing to sell.
You’re trying to maximize the appeal of your business, so running promotions to emphasize your sales revenue is important.
It will help you liquidate your aged inventory as well, which is great since your business will end up looking more appealing if you can move inventory fairly quickly.
As well, a store ownership change sale event can help you move on from your retail store in a much more confident manner.
A store ownership change sales event can bring in a lot of revenue, which you can carry with you into the next phase of your life.
What If I Can’t Sell My Store?
We realize it is becoming tougher and tougher to sell brick and mortar independent stores.
If you don’t manage to find a buyer or get a suitable offer, though, you can still run the biggest sale in your history.
The years of excellent service and the reputation you have built, and the customer loyalty you have developed can be used to generate a massive sale event that may even exceed the sale price you were contemplating.
Silverman Consulting & Retail Services can help you achieve this with a managed store closing sale event, helping you sell everything including the fixturers.
RELATED: How To Choose A Retail Store Closing Consultant
At Silverman Consulting And Retail Services, we can help you run your final sales so you can focus on finding the best buyer for your business, or if not, sell it all.
Should I Hire A Selling Business Sale Consultant?
You can even hire a business sale consultant to help you with the sale of your retail business.
While in process of selling, your mind will be occupied with all the details and threads.
It’s incredibly valuable to have help during this process.
Even if you’re extremely experienced, a business sale consultant will have specialized in the kind of knowledge you need to get your retail business sold.
Contact Silverman Consulting And Retail Services Today
Does a business sale consultant sound like the help you need as you navigate your business sale?
We’ll be here, seeing you through the small and large details of preparing you for this huge sale.
If you’re interested, don’t hesitate.
Contact Silverman Consulting and Retail Services today to find out more.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069