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Selling a Coffee Retail Business
It's a misconception that no one is buying coffee retail businesses these days. Savvy entrepreneurs see coffee retail business opportunities as a path to short-term profits and long-term growth. Although final sales prices vary, the best sales combine strategy and hard work to achieve desired outcomes.
In a down economy, many coffee retail business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of coffee retail businesses that are actually for sale.
There is no simple way to sell a business. But the most prepared coffee retail business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Promoting a coffee retail business Sale
Successful coffee retail business sales begin with a carefully planned advertising and promotional strategies. However, confidentiality and other concerns can present challenges, even for sales professionals. The knowledge that your business is being sold almost always converts into negative PR with your customers and vendors. There are multiple ways to promote a coffee retail business sale, many of which require the assistance of a professional business broker.
Valuation Methods
The methods for valuing a coffee retail business vary according to your business model and circumstances. However, there are generally three valuation methods appraisers use to determine your company's worth. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. As a safeguard, consider conducting appraisals using variations of multiple appraisal methods. To drive up your sale price, position your coffee retail business by improving variables like assets, revenue and profitability during the years leading up to a sale.
Advantages of Hiring a Broker
Brokers give coffee retail business sellers distinct advantages in the marketplace. First, business brokers are in tune with the realities of the market and are skilled at helping owners make their businesses attractive to premium buyers. More importantly, brokers have the ability to identify serious buyers and maintain confidentiality throughout the sale process. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
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