Selling your Amazon business may not be the first thing on your mind when launching your products, but it’s something to consider if you have been doing it for a while. Maybe you think it’s time to move on, do something different, or merely take a break.
You’ve put serious effort, time, and money into it, and you want the sale to go smoothly and get a good deal. You are probably asking yourself how to sell my Amazon business and get a fair price for it. We’re here to tell you all the steps, including how to get the right price and avoid all the mistakes people make when selling a business.
1. Write a great proposal
If you don’t communicate well when selling a business, you may not get a fair price, no matter how valuable it is. A well-written proposal lists all the benefits of owning a business to potential buyers and gives them valuable information, like strengths, figures, and future projections.
Here are some tips on how to write a great proposal and present your business the right way:
- Create an outline. Include cover and contents page, executive summary, business description, financial data, assets and liabilities, sale offers, etc.
- Describe your business. List your competition, target customers, describe the overall marketplace and what makes you unique.
- Include financial data. Talk about profits and revenue, include a balance sheet, inventory, equipment, and a budget that details your operating expenses.
- Project your future earnings. Provide information about at least two years’ worth of income, areas where it might expand, and include anything that will affect sales.
- Make the offer. Tell the buyers what you want and show them what will they gain with a recap of your financial projections.
- Add some support. Provide an appendix that includes marketing materials, bank statements, tax returns, a copy of your company’s budget, and any relevant information.
Thankfully, there’s an easier way to send outstanding proposals to your potential buyers. With the help of the Proposify proposal tool, you can submit proposals quickly and effortlessly. You can craft an exceptional proposal in just a few clicks and close a deal faster.
2. Get your numbers in order
It’s essential to find every financial record that you have. Otherwise, you may fail to get the best price for your Amazon business or run into issues during your sales process. Accurate and well-organized books are a must. This way, you will present a clear picture of your business to potential buyers.
You need proof that everything is running smoothly and that you know everything regarding your finances. Keeping track of every expense is vital to any business, as it’s a clear sign of whether the business is doing well. Your potential buyers will ask about everything, from your monthly revenue to the product purchase price, as well as storage and advertising costs.
Have a precise profit and loss statement, include as much information as possible, and double-check it to be sure nothing is missing. Consider working with a broker, as they will be happy to help you with this step.
Prepare your salary and expenses because you don’t want these costs to take away from your business value. These include charitable contributions, travel expenses, and anything potential buyers don’t need to see as an obligation.
3. Deal with taxes
Tax information is essential because no potential buyer wants to obtain a business with tax issues or some unclear information. Make sure to get taxes in order no matter how confusing they can be, and always be aware of what is happening.
If you struggle with this, you may want to hire an accountant to help you out. Accounting services might not be cheap, but they’re a smart investment. When you present your potential buyers with clean tax information, it’s easier to sell your business successfully and for the best price.
Of course, taxes can vary for each state, so there might even be the question of whether your business pays them. The issue of taxes is complicated, so look for expert help. They’ll provide you with the correct information and give you all the answers.
4. Understand what buyers want
Selling your Amazon business is not all about you. Your buyer will analyze every detail of your business for a good reason. They’re about to make a big purchase and you must assure them everything is going perfectly well and that you’re selling them a successful business.
Buyers focus on the risks, potential growth, documentation, and transferability. These four things can make or break your sale, so don’t take them lightly. Get to know your potential buyers well and make sure you understand what they want when buying a business. Determine the value and present it convincingly in your business proposal.
As for the price, you don’t need to come to the final number yourself. Go over the figures with your broker, set your expectations, and consider the cost of selling your business.
After all these steps, you’re finally ready to move forward and close the sale. Depending on the arrangement, you might be obligated to provide training and orientation to the buyer for a solid start. Selling an Amazon business is a complex process that can take months and includes many steps, so take the time to decide what you want.