Choosing to sell Shopify stores, whatever your reason, involves several minor considerations. It can require that one enlist the help of a broker, attorney, and/or accountant as one proceeds. Whether you will profit depends on the time at which you choose to sell your store, the reason for your sale, the structure, and strength of your business operations, and more.
The sale of your business will also require a lot of your time. Once your business is sold, however, you need to come up with certain smart ways in which you can handle the profit it generates. Here are a few tips when it comes to selling a Shopify store at the best possible valuation:
1. Time your sale well
There is no shortage of Shopify stores for sale, which means buyers have an abundance of options. Preparing for the sale of your Shopify store is essential. However, taking your time to prepare well is just as important. The earlier you prepare, preferably one or two years in advance. This preparation will enable you to improve the financial records you have, your customer base, and your business’ structure so that you can make your business more profitable. These improvements can also help ease the transition for the buyer that will enable the business to run smoothly.
2. Clarify the reasoning behind your sale
One of the first questions a potential e-commerce acquirer will ask is the reason behind why you’re selling a Shopify store. The clearer your answer and reasoning, the more likely buyers will be interested in your store. It is common for business owners to sell their business for the following reasons.
- Disputes in partnerships
- Death or illness
- Growing overworked
It is also very common for store owners to sell their business when it is no longer profitable. This reason, however, can make it more difficult to attract a buyer. Hence, considering the business’ ability to sell, your timing and its readiness are important. There exist multiple attributes when it comes to making your business appear more attractive. These are:
- Having a consistent income.
- Operating with a contract that spans years.
- Growing your profits.
- Having a strong customer base.
3. Consider using a broker
Choosing to sell a business yourself enables you not only to save money and avoid paying your broker’s commission, but it is also the best route when the sale is by a current employee or a trusted family member. There also exist other circumstances where a broker can help you keep the business up and running by freeing up your time. Since the broker might also want to maximize their commission, they might be able to secure the highest bidding price for you. Discuss advertisements and expectations with your broker so that you can maintain a steady flow of communication.
4. Keep important documents ready
Ensure you gather all of your tax returns and financial statements that date back three to four years. Ensure that you choose to review them with an accountant as well. In addition to this, develop a list of machinery, and other equipment that is also being sold with your business. Gather a list of contacts that are related to supplies and sale transactions. Make sure to pull up any of the paperwork such as your current lease for the land, machines, and more. You will likely have to distribute these copies to potential buyers that are financially qualified.
Put your best foot forward by making sure that the information packet you supply to buyers should also come with a detailed summary of how your business operates on a day-to-day basis. You might also want to ensure that your business is presentable to other buyers. Any areas of the equipment or the business that are run down or broker need to be either fixed or replaced prior to the sale going through.
The Bottom Line
The process of determining your business’ value is straightforward. You can either turn to professional evaluators or assess your valuation yourself through your company’s financials. However, the tips mentioned above are a means of selling a Shopify store to buyers through tips that help you put your best foot forward and receive the highest bid. Know more about selling Shopify Stores by clicking this link.