So, you have decided to sell your supermarket business. From prospecting, accounting, documentation, etc. – selling your supermarket is a multi-faceted process that can seem overwhelming. The process may be complex and intimidating, especially for the neophyte seller, but there are definite ways to make it more manageable. Here are some tips on how you can sell your supermarket business the smart way.
1. Know Your Business’s Worth Through a Licensed Business Broker
Knowing the real and accurate value of your supermarket will be easier if you get the services of an industry- focused business broker – someone who has the technical and practical know-how of brokering in a specific industry. Choose a broker who is properly accredited by the Australian Institute of Business Brokers (AIBB) and the Real Estate Institute of Australia (REIA) to ensure that you are dealing with a legitimate industry professional. One thing you must remember is that the value of your business cannot be determined by your personal discernment alone. It is, in fact, heavily dependent on the market. A business broker can assist you by providing a sound market appraisal of your supermarket for sale. Remember that prospective buyers will tend to look around and compare before they make a purchase, and you readily providing a reasonable offer will make them consider your business more than others.
2. Ask Help From an Accountant
If you want to earn the trust of serious buyers, it is mandatory that you produce legitimate financial statements to support your business’s credibility. It may be best for you to seek the assistance of a certified accountant to help you produce carefully audited records of your supermarket and not just some run-of-the-mill computation from your personal computer. Getting the services of an accountant may entail some extra cost, but note that the sale may be compromised without it.
3. Prepare a Complete and Updated Inventory
Preparing a complete inventory is vital in ensuring a smooth turnover from one business owner to another. Create comprehensive lists describing in detail all the infrastructure, machinery, equipment, suppliers, and furniture that you will turned over to the hands of the new owner. For example, list down all the computers in your store and make sure to include accurate details such as model and serial number. If some of your equipment come with government safety certificates, then make sure that they will be properly handed out as well.
4. Sell Your Business’s Potential
This is when you need to tap into your inner salesman. Know fully well your supermarket’s specific strengths, and make sure that you emphasise them. The prospective buyer has to know how he or she will benefit from buying your business – expect that the buyer will likely ask projections for a Return on Investment (ROI). It will also be useful to discuss things such as anticipated market growth, new technology, acquisition of competitors, divestment, etc. Set a time to sit down with your prospective buyer to discuss these. Use graphs, charts, and presentation decks to support your claims and effectively communicate your message.
5. Prep Up The Staff
Probably one of the most difficult matters involved in selling a business is turning over your staff. Some of these people have given you their loyalty and have extended diligence in their service, making them difficult to let go. With your decision to sell the establishment come the anxiety your employees may feel. You can avoid or lessen this by announcing your decision early on and giving them ample time to make the necessary adjustments. Being honest and upfront with your staff will help them approach the situation in a level-headed manner. Make sure the staff realise that selling the supermarket can also give them something to look forward to. Most buyers prefer to keep the old staff as they already have sufficient knowledge of running the business inside out. There’s also room for growth as the new buyer may have exciting new business strategies that can help expand the business.
6. Smarten-Up the Place
Remember that anything well-presented is more likely to sell faster, and this includes your supermarket’s physical establishment. When potential buyers come for an ocular, make sure they will like what they see. Perhaps you can do some repainting to cover the cracks and chips on the walls. Make the effort to have your equipment spick and span and your working and serving area gleam and shine. Freshen up the storeroom and dust-off the furniture. A general tidy-up will go a long a way.
If you want to sell your supermarket, attract right buyers, and get the best value for your business, be prepared to invest in promoting it. It is important to ensure that the opportunity you are offering is visible to the right kind of people in a myriad of ways. Try different advertising media such as web ads, social media, newspaper ads, and even good old traditional fliers and posters. Qualified buyers, mostly comprised of entrepreneurs and investors, tend to have varying behavior in looking for business opportunities, so, it’s best if you tap into as many advertising channels as possible.
8. Always Be Honest
Remember that selling something will take time, especially if it’s something as complex as a supermarket business. Honesty and integrity are important virtues in business dealings and they have a huge impact on the outcome of the deal. Always maintain honesty and full disclosure of details to all parties involved. It is highly likely for a sale not to push through if facts are concealed by the seller or claims are proven to be false by the potential buyer.
If you want to sell your supermarket in the most efficient and timely way possible, following the steps above will work to your advantage. The selling process may be a challenging and tedious task, but with the right attitude and perseverance, a successful sale is not far from reality. If you’ve already decided to sell your supermarket and would want to have an accurate assessment of your business’s market value, sign up for our FREE Market Appraisal today.