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How to Prepare Your Retail Store For Sale
Selling a retail business is one of the largest transactions many will encounter in life. The sale price can be maximised by investing time in the business before it is listed for sale and even before a business broker is appointed.

Business owners who invest time in the following areas can expect to achieve a better sale price than had they not focused extra attention on these areas of the business:

Presentation. Like a home, a business needs to look good, especially if those looking at the business are likely to work in it. They will be turned off by an untidy or unattractive work place. Invest time in making the workplace from the back room to the shop floor attractive and enjoyable. It needs to balance appeal with function.

Be sure to devote extra attention to the retail shop floor - give it a complete refresh from the products on sale to the sales counter to all product displays. Consider bringing in a professional visual merchandiser to create stunning displays to really make the store pop. The more a prospective purchaser likes the shop the more they are likely to want to purchase the business.

Inefficiency. Trim obvious inefficiencies. While some advisors will suggest that you need to leave work for a new owner, obvious inefficiencies could be construed as a commentary against employees in the business and therefore make the business unappealing. By trimming these now and making the business more appealing, a higher asking price could be achieved.

In considering inefficiency, look carefully at stock and quit old or obsolete stock, review business processes to ensure they are straightforward and easily followed.

Upside. Develop a plan for what you would do to drive growth should you retain the business. This business plan forms the upside opportunity for anyone purchasing the business., Purchasers want upside and they often expect the seller to outline for them what they see an the upside. Being prepared could make the business more saleable.

Key employees. Ensure that employees key to the successful running of the business are locked in with valuable contracts. Any prospective purchaser will want to ensure that these vital business assets will be available to them should they purchase the business. In negotiating such agreement with employees, ensure that the terms negotiated are competitive with other prices in the marketplace.

Preparing a retail business for sale is very much like preparing a home for sale. It takes time to ensure that the opportunity is presented in the best possible light. This investment, early on, can deliver a better sale price and a faster sales cycle than might have otherwise been achieved. The business owner also sells with the peace of mind that the business was sold in good shape.

Of course, a business managed for peak performance should not need such a pre-sales project as the steps outlines in this article represent good on-going business practices.
   2014/10/28
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