Three questions to ask yourself before selling your business

Starting and running your own business is something to be proud of. But eventually, everyone reaches a time when things like family and travel are more important, or perhaps when it's time to cash in on all your hard work.

It's a momentous decision that shouldn't be taken lightly. To help you come to the right choice and get the most out of your businesses sale, we've put together a list of three essential things to consider before selling.

1. Is selling the right decision? 

Why are you selling your business? If your answer is focused around money problems, difficulties complying with new government regulations or lacking the time to continue, make sure you've considered all your options.

Could you hire someone to assist you in running your business to give you more time and increase efficiency?

Perhaps you could change your business to better suit your lifestyle? Professional help from a financial advisor could help alleviate money problems and make your business viable again.

If you've taken time to consider your options and still believe it's the right decision, it's time to move forward.

2. What's it all worth?

Before selling your business, it is absolutely essential that you know how much it's worth. The National Australia Bank guide to selling a business details four key influencing factors when valuing yours:

• Circumstances of the sale: if you're selling out of necessity or in a rush, you may get less for your business. If you're just testing the waters, it's likely that you'll be able to take your time and negotiate a higher price.
• Tangible Assets: if your business has tangible assets like machinery, you should be able to sell it for at very least the cost of these items. These will be worth a definite nominal amount and are generally fairly easy to value.
• Intangible assets: includes things like brand, customer goodwill and supplier relationships. Can be worth a considerable amount but are often more difficult to value.
• Years of operation: if your business has a long record of profits and successful operation, it's likely to be worth more.

During this stage hiring an accountant is recommended to ensure your business is correctly valued. 

3. How will you find buyers?

While it's never a sure thing, gaining access to buyers throughout the nation through your online business sale listing is a great first step to success.