The bar business is risky business. There are many bars for sale on the market with many different options. How will you differentiate your sale from the rest and catch the eye of a potential buyer. In order to sell your bar and get the most out of your sale consider the following: timing, organization, cleaning, pricing and working with a business broker.
This is not the normal business brokerage process. Many Starting a business in Thailand will list your business based on what you would “like” to collect from a sale. This is a complete waste of time. It forces the market to price your business. And believe me, the market will tell you the answer whether you are ready to hear it or not. You’ll then tell the buyer that they’re crazy and that their offer is insulting. That is, until 5 or 6 buyers tell you the same thing. Only then may you start to listen.
Be willing to stay involved. Even if you are feeling burnt-out realise that the Buyer may want you Business brokers online to stay within arm’s reach for a while. Consult with your broker to determine how you can best effect a smooth transition.
Making your business ready for a sale: This not only involves making your premises looking good but also your numbers in your balance sheet or profit & loss accounts.
The second step is to decide what kind of business. This is really really important. What are the criteria for this business you are looking to buy? Do not make a wish list or what would be nice. Make a list of what is important. For example, if your standard of living requires $100,000 income, do not compromise by looking at businesses that make only $50,000.
Some sellers are so paranoid of the IRS, they are not willing to show anyone their private records or computer tapes for fear that the buyer could be an IRS agent. My personal opinion, and what I advice sellers to do, is to get their books legal and honest and hire themselves a top notch CPA, like Donald Trump, and use every legal trick in the book. Martha Stewart didn’t go to jail for inside trading. They got her on lying, even if she didn’t do any lying. There are legal ways to avoid taxes so that fraud is not necessary. If you cannot find a good accountant, I will recommend one.
More important, learn the key legal and financial points to purchasing a business such as the lease, bulk sale transfers, basic due diligence requirements, profit and loss analysis, and lessee’s responsibilities. Learn the difference between an assignment and sub-lease, a personal guarantee and UCC-1 financing statement.
Now do this exercise using your own company as the hub. You can use relationships that you work with as spokes, then go to each of those relationships and show them how to do this using their companies as the hub. As you help other business owners come up with sources for referrals, you can combine your lists of categories and names with other business owners and start working together. And when you help each other find common ground with people on your lists, imagine how many referrals that you could get!