It is very difficult to set up a business over a particular period of time. But sometimes things dont work out the same way as we have planned. So we have to take certain harsh decisions where we have to even sell the business. However, selling a business is a much more complex event. Actually when we sell a business then we have to see that we are not selling the business at a loss. Moreover selling a business involves a broker so there are a lot of dealings to be done. Therefore, it becomes necessary for the seller that he makes a perfect deal. Now we must understand what are the things that are involved in the process of selling a business or in other words what is the procedure of selling a business.

Steps involved in selling a business:

There are many business brokers in Dallas that provide intermediary and consulting services. They help in selling your business by a particular methodology, which involves certain steps: -

1. First meeting with the broker The procedure of selling your business starts with the initial meeting with the broker. Here the party, which is interested in selling their business, meets with the broker so that the broker gets a clear idea about the business that he is going to sell. This meeting actually determines the course of action that would likely be followed in order to sell the business. In this meeting the party also gets a clear idea of the services that the broker is providing and also about the charges that is to be given.

2. Evaluation of the business Now that the course of action has been determined it becomes necessary that a marketing price for the business be determined. Market value of a business is the value or the highest price one is ready and willing to pay and the lowest price a seller is ready and willing to accept. So it is important that the buyer and the seller come to a consensus or an agreement regarding the price of the business that is to be sold. Therefore a price for selling a business should be determined very carefully and after a lot of analysis of the market, so that it would be accepted in the market. Now there are certain factors that affect the pricing of the business. Such factors include assets, liabilities, companys industry, cash flows or management etc.

However the most important factor is the cash flow because, it is to be clearly understood that, anyone who will purchase the business would do so only in order to make money. So the cash flow needs to be sufficient so that the buyer is in a position to service any monetary requirements of the business after he purchases it. If the price is too high then it will be very difficult to find a buyer for the same. So a marketing price is determined which will make some sense in the market and both the seller and the buyer agree to it.

3. Marketing strategies After a final price has been determined then it is the turn of marketing the business properly. Now in case of selling any other thing you can give advertisements in each and every corner of the city. Even when you are selling a house you can sell it like a product. But when it comes to selling a business then the case is totally different. Nobody would like to advertise the sale of his business on the streets, because it will affect their reputation. So many a times the selling of a business is kept confidential and is done privately. So a proper marketing of the selling of the business is necessary while protecting the identity of the business at the same time. In this process every business is strategically marketed through a number of channels so as to attract the maximum number interested buyers. Personal contacts of the broker, extensive technological resources are some of the tools by which the business is marketed. Now the marketing should be done in such a manner that there are multiple parties interested in buying the business. This helps in increasing the bargaining power of the seller.

4. Negotiations with the buyer Once the business is marketed properly and we have buyers in our lists, we would start making negotiations with the buyers. This negotiation plays a very important role in selling of a business. During these negotiations the brokers play a very important role in getting your deal final.

5. Final deal After the negotiations has been done regarding the prices a final deal is made for the sale of the business ad all the legal formalities are fulfilled which are done by the broker itself. Thus the business is sold and the broker takes his commissions from the sale.

This was the procedure regarding the sale of business, which is practiced in Dallas. It is important on the part of the owner of the business that he appoints a proper broker and makes the dealings with the broker clear right from the beginning. In Dallas there are many types of business that are sold. They include businesses related to agriculture, automobiles, business services, construction related, manufacturing, medical and health, insurance, transportation etc. Now while you are selling a business it is also very important that you dont sell it on a loss. Though you wont be able to make a profit but at least you should make some money out of it. So that you still have an option open for you to start a new business or probably the same business after you have generated enough funds in future. Also as you will be paying out to the broker his charges so need to plan accordingly. One more important thing regarding selling your business is that all the legal necessities should be carried and fulfilled according to the law, so that you dont land up yourself into ant legal problems. Though the broker helps you in fulfilling all your legal necessities still it would be better on your part to crosscheck the same.