What To Do If Your Home Business Fails
Even if you have a very sucessful home business, you should know that over 90% of home businesses end up doing poorly in their first two years and don’t last longer than four years. Many people have a very viable business but become sick of doing it, while others see changes in technology that make what they do obsolete. What do you do with all your customers in this situation? How can you transition out of your home business without losing money? This guide answers all these questions, and then some.
1. Selling Your Business
Yes that’s right, selling your business might be a good idea, depending on a few things. If your business was incorporated you will have a better chance of being able to sell it. Other businesses, such as electronic repair, rely on your own personal knowledge and effort to run. In essence, you can’t sell a business where you basically are the business. If your business would be inoperable without your training or knowledge, no one will want to buy it.
2. Selling A Home Business
You often get far less for a home based business than you would others. The business will not come with premises and likely won’t be able to transfer any employees you have. The only exception to this rule is when a very large business decides to buy you because of your unique branding and customer base. In essence, they will both eliminate a competitor and expand their customer base at the same time.
3. Make Your Business Attractive
OK so you are going to sell. Great. Now what? You have to make your business as attractive to potential buyers as you can, right? Being able to provide potential buyers with sales figures, trends, and growth patterns is a great way to convince people to buy. Theyre in it for the money, and even if the business costs them a lot if you can prove to them that they will start seeing profits they won’t have any reason to turn you down.
4. Get The Price You Want
Never sell to the first person who offers, you need to get offers on the table from everyone you can think of who might be interested. If you have the ability, get an accountant and a laywer to take care of the details of the transaction. If you can, plan your sale in advance. The best sales usually come from businesses that take a year or more to sell and are always prepared to walk away from the bartering table. You also have to pay tax on the sale of your business.