Sell a Business Tips
Selling a Surf Shop
Is the economy still a little shaky for a business sale? Sure it is. Yet surf shops haven't heard the news and are reporting steady action on the business-for-sale market.
You need to get a good price for your surf shop. To get there, you'll need to set realistic expectations and follow a deliberate selling strategy.
Undaunted by economic conditions, many surf shop sellers are achieving their sale goals through deliberate sale strategies.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa surf shop: 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. Finally, the market method determines the worth of your surf shop based on the sales of similar businesses in your geographic area. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. 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.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Sometimes, sellers need to readjust their expectations to accommodate market realties. If price is the most important outcome, you may need to agree to seller financing or other concessions. If a fast sale is the highest priority, you may need to lower the asking price to quickly capture the attention of the marketplace.
What About Market Conditions?
No one plans to sell a surf shop in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. Despite the risks, sellers need to be cognizant of the fact that there is a large volume of surf shops waiting to be listed until the economy rebounds. When that happens, the buyers' market will become even stronger and have a negative impact on prices. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your surf shop as attractive as possible so to buyers right now.
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