Tips for Selling a Retail Business

As with restaurants there are specific things that can hinder your sale. So, if you have a retail store to sell you may need some tips to help you make it a successful sale. We have that information for you here.

• You need to decide what you can sell in the business. Do you own the property? Are you just selling the inventory? Are you going to include the business accounts, your customer lists, business plan, etc? Depending on what part of the retail store you are selling you may need to change your price plan. If you are selling the inventory only with no business management system, staff, or even equipment you will only be able to get a small amount for the business. However, if everything is being sold like the clothing racks, computer system etc. you can earn more.
• It’s always nice to sell a business with property. Unfortunately, if you do not own the location this can be hard. You will need to make it clear that the property is not part of the deal. You can approach your landlord of the rental space and ask what terms they may be willing to offer the new owner. Location of a business is imperative. Customers who know your store will want to find it in the same place after new ownership. If you have a reasonable landlord they may be willing to offer the same rent or at least an affordable rent to the new owners. It pays to know this ahead of time.
• Many retail businesses have an online site and their brick and mortar store nowadays. Are you selling just the brick and mortar location? If you are this can be considered a partial business sale in which you still have control of the suppliers for both locations. It can also affect how the sale works and whether anyone will be interested in the partial sale.
• If staff is involved keep the sale on the QT until you are ready to make the sale. You should also look at your staff and weed out any potential problem employees, i.e. those who already do not perform for you. You want your staff to be received in the best light to ensure they will keep their jobs.
• All business accounts, books, and financial information regarding your business should be ready to be viewed. The potential buyer will want to see this information. It should be presented in the best light.
• If you are in a holiday area you need to explain the books slow periods. For example you may suggest to the potential buyer closing during the slow periods if they find the numbers unwelcoming. Tourist areas do act differently than regular business retail locations.