Let’s say you have operated a craft business for some time and you feel it’s now time to move on. Your business has made money, but you’re just ready for change. Selling your craft business is possible, but may not happen overnight. Here are a few things to prepare in order to make your business more attractive to prospective buyers:
1. Profit / loss statement for this last year (last 2 years will be better especially if you can show growth)
2. Balance sheet showing your assets (inventory, equipment, who owes money to you etc) and liabilities (who you owe money to)
3. Statement from a CPA verifying the above information and that there are no liens against the business
Your asking price can be anywhere from 1 to 3 times your annual profit. Note that’s profit, not sales. I know you think your business is worth more because of all the love you put into it, but most serious buyers are going for the bottom line.
If your website gets a lot of traffic (unique visitors is a better measurement than page hits), prepare a chart showing your traffic. Again, if you can show growth over time, your business becomes more attractive as an investment.
Be aware that every detail that you reveal, tells a prospective buyer how to go out and recreate your business model on their own. In fact, just by putting your business of for sale, you may be creating competition.
You can overcome some of the risk by offering to provide support for the new owner who buys you out. If you can help them for the next 6 months, you’re lowering their risk.
Another point to remember and I learned this the hard way: when you go to sell anything, if you feel desperate or needy – those feelings come across in your communications and a sharp buyer will use your fears against you to lower the asking price.
If on the other hand, you come across as not really needing to sell, you radiate a confident attitude that you don’t need to sell and this will allow you the clarity to hold out for the best price. Confidence about your business’s strengths lets you take your time and not jump at the first offer. If you have more than one inquiry, mention that to any prospective buyer.
If you are just wanting to sell your website, here are a few sites that act as brokers. Some of these sites offer helpful tips for selling (or buying) domains.
buysellwebsite.com
websitebroker.com
sitepoint.com
dnscoop.com
sedo.com
afternic.com
namepros.com
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