Advice on Niche Market Exit Planning
Selling a Trampoline Centers Business
The decision to sell your trampoline center isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.
You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling a trampoline center.
The good news is that ambitious entrepreneurs continue to see trampoline centers as a smart business investment -- and the market is rewarding owners who are willing to invest time and energy in their sale.
Signs You're in Over Your Head
Many trampoline center are tempted to save brokerage fees by selling their businesses on their own. But for every successful unassisted sale, several other trampoline centers sell below market value or languish on the market for years without attracting the interest of qualified buyers. If you decide to go solo and your business has been on the market for more than six months without a single buyer inquiry, it's time to hire a professional business broker. Likewise, if buyers seem to express interest but quickly exit when you quote the asking price, it's a sign that your trampoline center is priced out of the market. The remedy is professional brokerage or a consultation with more experienced sellers.
Valuation Methods
Professional appraisers can use three methods to determine the value ofa trampoline center: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). 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. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Current Market Conditions
No one plans to sell a trampoline center in a down economy. So far, government intervention and promises that the economy is slowly recovering haven't been enough to alleviate many entrepreneur's fears. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. Like it or not, the time to sell your trampoline center may be right now, as long as your willing to adequately prepare your business for the marketplace.
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