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thinking of selling business
- Thread starter BROWNDOG
- Start date
kreactioninc
New Member
Same here, there are firms that help you sell your business, kind of like the Real Estate Agents but for business. You should search for someone local to help you sell your business.
Gino
Premium Subscriber
Mostly, you can sell equipment and supplies, the real estate along with trucks and other objects, but the business per se, is hardly worth a thing. Someone would be a fool to buy a customer list if you think it's worth anything, unless you're a multimillion dollar company. Then, no one would ever notice a new owner.
Why don't you ask one of your employees if they'd like to buy it for a good price ?? If they consider it, maybe you have a taker.
Remember, if you go out of business today, all those customers you have will have to go somewhere, so why would anyone want to buy that which will probalby be out looking for a new place to go ?? Someone simply buying you out will not dictate those customers will remain.
Why don't you ask one of your employees if they'd like to buy it for a good price ?? If they consider it, maybe you have a taker.
Remember, if you go out of business today, all those customers you have will have to go somewhere, so why would anyone want to buy that which will probalby be out looking for a new place to go ?? Someone simply buying you out will not dictate those customers will remain.
Pat Whatley
New Member
Depends a lot on whether you own a job or a business.
A "job" requires you to be there for it to make money.
A "business" is a system designed to make money without you being there.
The reason most small businesses don't sell for much is because there's nothing of real value left once the owner leaves. If you have supply chains, inventory systems and production methods in place as well as employees who can and do handle everything without you then you have a product an investor can look at and see how he can tweak the system to make him more money.
A "job" requires you to be there for it to make money.
A "business" is a system designed to make money without you being there.
The reason most small businesses don't sell for much is because there's nothing of real value left once the owner leaves. If you have supply chains, inventory systems and production methods in place as well as employees who can and do handle everything without you then you have a product an investor can look at and see how he can tweak the system to make him more money.
300mphGraphics
New Member
Customer lists are worthless, customer files and an established relationship is worth something. Not what you'd think, but there is certainly value or some dollars there.
Yes.. that's what's really worth something - the goodwill.
The equipment? not so much.
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Pat Whatley
New Member
tattoo.dan
New Member
yeah, try this.....
Techman
New Member
there are two forces at work.
Force one is selling a job. You sell your inventory and your equipment and maybe the building. This is worth whatever you can squeeze out of a buyer.
Force two is selling a business. This is where you set up the operation to run on its own.
How do you know when it is ready to sell as a business? Stay away for three days and see what happens. If it breaks down and you get 198 phone calls on what to do if.. Then you are selling a job. If it runs on its own and continues to make money you are set. You can sell it for a nice profit.
I went to Korea a few years ago. Was away for two weeks. Never made a phone call. It was still standing when I got back. Can you go away for two weeks and still have something when you get back. IF so then you will make some profit if you sell.
Force one is selling a job. You sell your inventory and your equipment and maybe the building. This is worth whatever you can squeeze out of a buyer.
Force two is selling a business. This is where you set up the operation to run on its own.
How do you know when it is ready to sell as a business? Stay away for three days and see what happens. If it breaks down and you get 198 phone calls on what to do if.. Then you are selling a job. If it runs on its own and continues to make money you are set. You can sell it for a nice profit.
I went to Korea a few years ago. Was away for two weeks. Never made a phone call. It was still standing when I got back. Can you go away for two weeks and still have something when you get back. IF so then you will make some profit if you sell.
You can sell your business.
I did it in 1995. I was moving out of state.
Used broker. It was 6 years old business. Took me 3 months. It was dan with escrow.
Made good money....and paid a lot taxes after selling it....40%.
If I will open another business in the same state will be a little different story with taxes but it was another state.
Need to wait few months for IRS to clear before I recived any penny.
Escrow company told me I'm lucky....some people wait years for money.....specially when they have any issue with IRS...
I did it in 1995. I was moving out of state.
Used broker. It was 6 years old business. Took me 3 months. It was dan with escrow.
Made good money....and paid a lot taxes after selling it....40%.
If I will open another business in the same state will be a little different story with taxes but it was another state.
Need to wait few months for IRS to clear before I recived any penny.
Escrow company told me I'm lucky....some people wait years for money.....specially when they have any issue with IRS...
Gino
Premium Subscriber
That was almost 20 years ago. People were much stoopider then. You could sell a sign business for quite a bit in those times. I sold all kinds of stuff and made buku bucks, cause no one knew any better back then.
nwsigns
New Member
I sold my retail sign ship about 5 years ago. To do it right you need to spend some time in making your business in to a self running entity to have any real value - can you leave for 2 weeks and everything run okay? If not, your going to have a hard sell.
Also take some time to make your business look good - comprehensive marketing materials - print, web, signs, etc.
Back to point one - get organized - have procedures and manuals.
There will be some who look at your business numbers only but for the interested owner operator there is an emotional factor as well - make it all look good and exciting. Of course you probably wont want to sell then
It took me almost a year to get what I wanted for my business which was WAY more than biz brokers would list it for. I listed it on several online business broker websites, got an offer, cashed out and started over doing it the way I really wanted to and knowing how to get there this time.
Also take some time to make your business look good - comprehensive marketing materials - print, web, signs, etc.
Back to point one - get organized - have procedures and manuals.
There will be some who look at your business numbers only but for the interested owner operator there is an emotional factor as well - make it all look good and exciting. Of course you probably wont want to sell then
It took me almost a year to get what I wanted for my business which was WAY more than biz brokers would list it for. I listed it on several online business broker websites, got an offer, cashed out and started over doing it the way I really wanted to and knowing how to get there this time.
Gino
Premium Subscriber
:ROFLMAO: I think I know how you came up with numbers in your favor.......... :Oops:
Seriously though, you said it yourself.... the man told you, you were lucky.
It can be done, but I would not count on much based on the facts of the OP's opening post.....
Seriously though, you said it yourself.... the man told you, you were lucky.
It can be done, but I would not count on much based on the facts of the OP's opening post.....
sometimes it just gets to be too much, and i want out!
anyone ever sell a sign shop before or have any advice for dos and donts
anyone ever sell a sign shop before or have any advice for dos and donts
Doesn't sound like much effort was... or will be put into this emotional statement. We all feel it from time to time. Heck, I did, just the other day when a very big job we were working on went south, probably even lost it due to someone's oversight on their part.
Whether customers continue to give lousy artwork, you run out of ink in the middle of a job, the door flies open and blows sh!t all over the place or just plain ol' screw ups, we all feel like running away as fast as our legs will carry us and drink that piña colada on the beach at sunset. Raising prices, taking a few days off or just facing it head on, things will always get better. One needs to look hard at themselves and figure out how much you did wrong vs. how much you were handed wrong and figure out what went wrong and how you can fix it so it doesn't happen again, or you can at least avoid it next time.
Whether customers continue to give lousy artwork, you run out of ink in the middle of a job, the door flies open and blows sh!t all over the place or just plain ol' screw ups, we all feel like running away as fast as our legs will carry us and drink that piña colada on the beach at sunset. Raising prices, taking a few days off or just facing it head on, things will always get better. One needs to look hard at themselves and figure out how much you did wrong vs. how much you were handed wrong and figure out what went wrong and how you can fix it so it doesn't happen again, or you can at least avoid it next time.