Exit Planning Tips
Selling a Hair Goods Business
You've invested time, effort, and creativity into building your hair goods business. But the hard work isn't done yet. Before you can make a graceful exit, you will have to invest yourself in your business sale.
These days, the prospect of selling a hair goods business is so daunting that many would-be sellers are biding their time, waiting for a break in the economic clouds.
Although it takes hard work and dedication, if it's time to exit your hair goods business there is a good chance you can sell it for a good price -- even in today's market.
Business Valuation
Professional appraisers can use three methods to determine the value ofa hair goods business: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.
Tapping Into Business Networks
There are a lot of different places to look for hair goods business buyers. To advertise your sale to the widest possible audience, consider a listing on BizBuySell.com or other top online business-for-sale listing sites. For more targeted lead generation, consider tapping into your network of industry contacts. When leveraging industry relationships for sales prospects, you'll need to be cognizant of the potential for competitors to use knowledge of your sale against you in the marketplace. Use good sense in restricting the flow of information within the industry and focusing your efforts toward trusted industry allies.
Average Preparation Time
There are no effective shortcuts for selling a hair goods business. Buyers want to see growth trends, healthy profits and other variables that increase the likelihood of long-term success. Additionally, prospective buyers usually request documentation that allows them to understand the business's daily workflows and operational strategy. Unless you have already started planning for your hair goods business sale, it's going to take at least six months to prepare your business. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.
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