Home – New Forums Starting your journey Started new business – now want to sell

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  • #991468
    Bon228
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    Hi Everyone I have come to this forum for some help if possible…….

    I started up a small business selling kids/teen/tween clothing of an extremely popular brand. The business took off very quickly and started taking on new avenues and before I knew it it grew very fast. Since I work 2 other jobs which I really love and don’t want to give up, I need to sell the business as I just don’t have the time to build it to where it needs to go.

    The problem is I have just bought over new stock from the US as the first lot sold very quickly, and the business is only 4-6 months old so I don’t have that many financials to show.

    I need help – what do I do to sell this business quickly?

    #1181652
    Dave Gillen – Former FS Concierge
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    Hi there and welcome aboard the forums!

    You could try listing the business on gumtree and any online “business for sale” sites for a start.

    The main issue I see with selling it is the lack of (or very short term) financial numbers. That simply means commanding a high price will be difficult, and you may need to sell for a price based on the amount of stock rather than selling “a business”.

    Personally I’d hire someone to manage the business for another 6 months or more to show that the business can generate a consistent (or growing) income, and then you’d be able to sell it as a business rather than just stock.

    Good luck!
    Dave

    #1181653
    Ryinth
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    Do you enjoy this business? Could you possibly cut back at one of your other roles in order to continue it?

    #1181654
    3ntr3pr3n3ur
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    Bon228, post: 211918 wrote:
    I need help – what do I do to sell this business quickly?

    Hi Bon,

    Congratulations on your success! My first piece of advice is; don’t sell – with the success you’ve described, I’d be standardizing processes and then replicating your business model!

    However, if a sale is a must; choice #1 would be to follow Dave’s advice above. This will provide more sales history and enable a more accurate forecast of future sales, and thus increase business value.

    Alternatively (if a quick and high valued return is your priority), I would focus on implementing low cost ideas that create quick business value. This can be done as outlined in the list below.

    The options below generally focus on the softer parts of the business that frame it up into a sort of simple and clean ‘package’. The intent here is to enable a potential buyer to see themselves easily stepping into, operating, and growing, the business… Each option could be implemented within 2 weeks and for relatively (and subjectively) low cost. This will also ensure that the cost of creating a business similar to yours will appear more, thus making the purchasing of your business a more attractive option than just creating a simliar business and going into competition with you….

    – FACEBOOK PAGE (with large fan base): Can be acquired quickly and cheaply with a couple of promotions and targeted marketing. Seek professional support if this isn’t your area of expertise.

    – WEBSITE (with online purchasing): A template website could be established (purchasing options incorporated) within a couple of weeks.

    – STATIONERY (including invoice and business card templates): Not expensive, but shows consistency of your image/brand. This will most importantly play on the mindset of a potential buyer, enabling them to feel like they could run the business.

    – COMPUTING HARDWARE (like a schmick Macbook, iPad and/or iPhone): Shows a level of simplicity in the operation of the business and will support promotion of the business as “easy to run”.

    – CASH AT BANK: Establish a business account (if not already acquired) and throw a couple thousand dollars in to support the potential buyer’s marketing / management of the business within the first couple of weeks. This will help make the potential risk of failure appear lower.

    – PAYMENT OPTIONS (like eftpos, paypass/payWave, PayPal): Plenty of ways to take money from people… Shows established sales practices.

    – BUSINESS PLAN: Download a simple PowerPoint/Keynote business plan template for free (I have a great one if required). I like the concept of a business plan in presentation format as it encourages wording and information that helps to promote / sell your business. A business plan will also enable you to emphasize the potential of the business which is crucial without significant business history.

    – OFFICE SPACE: If you have a warehouse holding your stock, be sure to have a nice office setup that a potential buyer could picture themselves sitting in.

    – MARKETING / FUTURE SALES: Seek a surety of future sales by securing a contract of some sort, which may include; you delivering stock over a 6 month period to an alternate retailer, or even consignment of the stock you’ve already got coming in to an alternate retailer. Maybe even book a stall at an upcoming (industry specific) trade fair (which you could cancel if the business didn’t sell). All these options show that you will / expect to be making significant sales in the near future.

    – ASSOCIATION MEMBERSHIPS: Are there any industry specific associations you could join. These are relatively cheap, but will show a connection to your industry adding weight and providing confidence to a potential buyer.

    From an advertising of the business standpoint – I’d be sure not to leave out sites/forums that are frequented by entrepreneurial types as it’s that sort of mindset that will acquire a freshly established business, and not rely on past sales history to prove a concept, rather rely on their own business acumen to make the decision….

    Lastly; keep your options open regarding the sale of the business. You may, instead, find someone willing to enter a partnership with you and take on the management of the business, which will keep your financial interest in the business, but not the daily headaches….

    WoW – that ended up being a pretty big brain dump… hope I’ve added a little value to your thread :-) and best wishes… I’d love to hear of your progress!

    Regards,

    Alan

    #1181655
    Bon228
    Member
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    Wow thank you so much for all of your advice. This is exactly what I was hoping to get from a forum such as this. I will defintely take it all on board and have a good hard think about the direction I want to go in.
    Thanks again for taking the time to respond in such depth.

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