How to Sell my Florist
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How To Sell A Business For All Its Worth
by Harvey L. Gardner
Florists
work hard for many years building a successful florist business. The
rewards are worth the effort, but only when they sell their business do
they finally realize the full value of their investment of time, effort
and money. To sell a florist shop for all it's worth, business brokers
commonly recommend these steps.
1. Have a valid reason to sell.
Prospective
buyers will want to know why you're selling. Their fear is that
something is wrong with the business. Having a valid human reason for
selling your florist business is your best first step. You will get
better buyer response if there isn't any reason to doubt the viability
of the florist business.
If you're just tired and burned
out, say so. The most common reasons for selling are burnout,
retirement, poor health, death, divorce, partnership disputes,
relocation, and pursuit of other interests.
2. Don't wait until pressured to decide to sell.
Deciding
to sell your florist business will be one of most difficult decisions
you 'll ever have to make. Many people wait too long to decide to sell
and find themselves pressured by poor health, financial problems, or
emotional stress. Avoid, if at all possible, selling under duress.
It
will be like giving up one your children, but make the decision before
circumstances force you to make it. Florist shops generally take
from 120 to 180 days to sell. Often it takes longer, so allow yourself
plenty of time.
3. Maintain confidentiality.
One
of the biggest mistakes made by sellers is telling non-buyers the
business is for sale before it's a done deal. When one sells a home or
a parcel of real estate, they want everybody to know it's for sale.
There is no stigma attached to selling a home. Everybody does it.
But it's different with a florist business. The rumor mill starts grinding when word gets out that a business is for sale.
Customers
are afraid they won't be served. Designers and employees are anxious
about their jobs. Suppliers fear they won't get paid. Competitors tell
everybody that you're going out of business. Sales slip; profits shrink.
Buyers
perceive your business is in trouble, and that drives down its value.
Talk to prospective buyers only, and require them to sign a
confidentiality agreement before they know the name and location of
your business. Contact us and indicate that you need a copy
of a non-disclosure agreement. Click Here
4. Gather information needed to market your floral business.
Your
floral business must be marketed and sold just the same as any other
product or service. Put together a marketing package that shows your
business in its best light.
Assemble complete financial
statements, income and sales tax returns, a list of fixtures and
equipment, copies of deeds and leases, copies of any franchise
agreements, copies of equipment leases and maintenance agreements, the
approximate value of inventory at your cost, and the names of your
outside advisors.
In addition, you'll need a list of all loans showing the lender, the balance due, the interest rate, and the payment schedule.
5. Engage competent professionals.
Unless
you're an experienced negotiator, it's recommended you engage
professionals who are knowledgeable in the sale of businesses. Find a
business broker with experience in marketing and selling florists. Contact us and indicate that you need a florist business broker. Click Here
6. Be part of the marketing team.
The
broker will ask you about every aspect of your florist shop. Don't
hold anything back. If you hide a problem, it will come out later. The
broker know how to deal with unfavorable aspects of a florist business.
If it comes out at due diligence, and deal blow up, you will have
wasted all your efforts.
Follow your broker's advice about
dealing with prospective buyers. Some of the suggestions may seem odd
to you, but there is a reason--you want to maintain confidentiality,
and you want to get some offers to buy. An experienced broker will help
you do both.
7. Don't let things slip.
Don't let
things slip because you're selling. Keep normal business hours. Keep
inventory constant. Advertise and promote your florist business to
keep sales strong. Paint up and fix up. Make the business look as
prosperous as it ever has.
8. Put yourself in the buyer's shoes.
Suppose
you're visiting your floral business for the very first time. How
impressed are you? How does the place look? Are your people friendly
and helpful? Do the customers you speak to have good things to say
about the business, its employees, its products, and its service?
9. Consider all offers carefully and make counter offers.
Don't
panic if the first offer you receive seems too low. Be patient. Keep
the ball rolling once an offer is made. Study it carefully. Make a
counter offer. Even if you decide to market and sell your business
yourself, it sometimes can be profitable to hire an experienced broker
or attorney to negotiate the terms. Don't allow your emotions to stifle
your objectivity.
10. Create a win-win situation for everybody involved.
There
are no strict rules about selling a business. It will be worth to you
what you can get somebody to pay you for it. As in all areas of life,
there must be something of value for everybody in the transaction.
When you set out to sell your business, ask yourself: Will it be beneficial to all concerned?
This
example from my own experience as a business broker illustrates a
healthy compromise. When the final offer was too low, I suggested to
the seller that he not sell his building, but lease it to the buyer
instead. That resulted in a quick sale.
The seller benefited
three ways by making it easier for the buyer to close the deal: 1. He
got 20% more for his business, 2. He receives a monthly rental check,
and 3. The value of his building increases every year.
The buyer benefited because he was able to buy the business although he couldn't afford to buy the building.
If your deal benefits all concerned, you probably will sell your business for all it's worth..
Don't hesitate to contact us to ask any questions about the process. Click
here