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Steps to selling your freelance business

10 June 2021

If a business is booming, there’s a good chance that you will get a few offers from interested buyers before you even decide to sell.

Sometimes you may look to sell your business because you want to venture into a new business or retire. For any reason that you may be selling your business for, you need to be prepared and be ready to work through all the hassles of selling a business.

In today's blog, UASA IP has a few guidelines on how you can go about selling your business and how to make sure that you get what your business is worth. 

Plan and clean everything up

First of all, pore over your accounting and bookkeeping to make sure things are correct. The numbers here have to be dead-on for your valuation to be accurate. If you don’t have an accountant or bookkeeper, hiring one can help immensely. After that, tidy up your standard operating procedures.

Procedures and systems are assets that add value to your business, so document and standardize everything you can. Make sure your analytics are accurate and up-to-date as well. Having accurate numbers for essential metrics like conversions and traffic lets you show your buyers how well your business is doing. This can reduce uncertainty for the buyer, making them more willing to move forward with the deal.

Find your business’s valuation

Now that your records are cleaned up, you need to find the value of your business. There are three methods of finding your business’s value, but the easiest one is called the discounted cash flows method. This method attempts to calculate the business’s value today based on the future money it will make. Make sure you look at all your assets including digital assets. Things as simple as animation videos and other forms of content add value to your business. In this case, these are marketing assets that bring in more customers throughout your value chain.

Prepare financial documents

Nearly every party involved in your business sale, from the buyer to your attorney will be scanning through your financial records. This is why tidying up your bookkeeping is vital. In particular, buyers and other interested parties will want to see at least the last three years of your business tax returns, balance sheets, cash flow statements, and income statements.

Get help from a broker

Selling a business can be arduous, as you can see from the previous steps. You also have to find buyers, negotiate the sale, and ensure the legal stuff is handled, and so on. If you aren’t careful, you could waste time and lose out on possible profits from the sale. That’s where hiring a business broker comes in. Business brokers often have a network of suitable buyers, making it easier for you to sell your business at a fair price.

They are also connected to accountants, attorneys, and similar experts that can help sell a business. Brokers can also help with the sale itself, facilitating negotiations, doing due diligence, and helping you maximize your proceeds. Ideally, your business broker should have experience brokering sales of your type of business. You should have an attorney with contract law and business sales expertise to help you. There are plenty of legal documents that you need to go through so doing it yourself leaves you vulnerable to pitfalls.

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