There is a very small chance a business can be sold in California, but if you are lucky enough to sell one, you will be rich overnight. If you follow the steps given below, your chances of selling your business sin California will be very high:
Step 1: Set all records straight
Gather all important documents, such as the federal tax returns for the past 3 years, the financial statistics on profit and loss for the past 3 years, the bank statements of the past 3 years, a copy of the current lease, the list of equipment being sold with the business, etc. The buyers will need this information at the time of sale and even before it. You will also need the statistics of the net income, as buyers will want this information.
Step 2: Get a business valuation done from a professional
With the help of a third party, get your business valuation calculated. This gives an estimate of the worth the business is according to current stats. You may be pricing your business too high and find no buyers, so this step is important as you will figure out the actual worth of your business setup.
Step 3: Create a folder for all your contacts
Keep a folder that carries all your contacts, notes, information, and paperwork for you business’s sale transaction. The contacts should include buyers contacting you, even those who may be your second or third priority, as your chosen buyer may back out last minute. All your purchase agreements, confidentiality forms, and contacts of attorneys and CPA’s should be kept secure in a folder.
Step 4: Write a short summary of your business
Many buyers will come to see what you are selling, and instead of you explaining what your business is about each time, it would be easier to have a written piece on the business you are selling. The summary should have a brief history of the business, the date it was established, the employees in it, information about its surrounding area, the competition around it, why you are selling it, what ideas ta add for the seller, etc.
Step 5: Market and advertise the sale of your business
It is very important to spread the word about your business being sold. You will have to spend some money for advertising it. You need to have multiple offers from different buyers to choose one to sell to.
Step 6: Keep moving forward in communication
A time too long can kill a deal, so keep moving forward with the sale. If you let a situation sit too long, you deal will end up as a disaster. Keep the due diligence time frame short too – making it up to 2 weeks only.