Earlier today, I wrote in the first part of this topic on “Selling Your Home Business” about how the type of business structure and what your business does can affect your ability to sell it if you should decide you are ready to get out of the business for whatever reason. I want to also talk about how to figure out the value of your business and what to look for in a buyer.
Setting a value on a home business can be tough. After all, most of us do not have property that is separate from our house and we don’t want to sell that along with the business! Looking at your gross profits is one way to start defining a value for your business. How much money you are able to reasonably make from the work you do can give a buyer an idea of what the business is worth. You will also want to place a value on any equipment or supplies that you will be sending along with the new owner.
You may need to get a specialist in your field to help you determine the value of your business. If you have a web site you can sell (and that is the bulk of your home business), then you will probably want to get a brokerage or auction company to help you. Take your time to research all of the potential companies and make sure you find one that has experience brokering or selling web sites like yours (size, content, demographic, etc.). You may find that networking with colleagues can help you find someone to help you sell the site.
How choosey should you be in looking for a buyer for your business? I think it is important to consider who will be the new “parent” of your business and we all want to make sure that our customers and clients are in good hands. On the other hand, we can fall into the trap of being so choosey and picky that we are not at all prepared to actually let the business go. This may tell us that we are not ready to sell. You have every right to look for someone who you think is prepared to take over the business and who understands what it is about, but you will not be able to totally control the outcome or the future of the business once you sell it. Again, it can be good to have a middle person broker the sale to make sure that everything is done well and that emotions do not get in the way.