If it’s time to sell your online store then you will want to ensure that you receive the highest profit possible from the sale. A lot of things can be used to assess whether your business is ready to sell and if it’s a viable option for buyers.
In 2019, it was reported that sales for online stores had increased by 14% in only three years, so the opportunities to sell are increasing. Learn how to increase your profit from the sale with these few tricks.
Go Private
Selling the business is not the only thing to consider, you have to think about who is buying the company. You want to leave your business in the hands of someone who will ensure its survival in the market and with a good reputation that customers can trust. Going through a broker is easier, but there are costs involved, so you won’t get the full amount of the sale. By facilitating the sale yourself, you can negotiate for a higher price and you can choose which buyer to sell to.
If you do choose to go private, keep certain information back until the sale is finalized. Things like access to the website or supplier contracts should only be provided once the sale has gone through to maintain privacy and confidentiality of valuable data.
Don’t Be Too Involved
As a business owner, you have likely put many years of effort, time, and dedication into the job by working long hours and taking on more responsibility. While this is great and probably the reason for your success, it can impact the price of the business. Most online store buyers work part-time and only average about 20 hours per week of work. This means they want a business that doesn’t require a ton of direct involvement from the owner to carry on with business operations. The more involved you are in a business, the more you have to be available to ensure that things don’t fall apart.
By understanding the level of owner involvement in the business means you can increase the sale price if the new owner doesn’t have to be involved all that much. The idea is to get your business to a point that employees manage most of the functions, and the owner just oversees the more important aspects of the business such as the financials.
Reduce Risks To The Online Store
As you are selling an online platform where customers can purchase products and services, your system needs to be free of any risk that may deter business buyers. One way to reduce risks is to have a website that has been online for more than two years. This illustrates to the buyer that the platform is viable and has been around long enough to generate sales. Your operational procedures also need to be in place with a quality management system that actively works to mitigate various risks.
From marketing to planning innovation, a successful business has plans in place to tackle any problems. Ensure that secure payment methods and options for your customers are in place and that you are within all the legal guidelines that pertain to your business’s industry. The tiniest risk can have the biggest impact on the value of your online store and how much you can realistically sell it for.
Determining when the best time is to sell an online store is tough enough, but selling it for maximum profit is another story. There are tons of factors that influence the value of your online store and they all affect the sale of the business. If you want to ensure that you receive maximum profit for your store, these few factors can help you make the most of it.
