Many shop owners start out thinking of a business that fits in with their lives, the family, social nights out!
Those dreams soon disappear and realise that they are shackled to their business. It is the business that demands of them. The long days soon turn into log weeks, months and then years.
So you decided to sell – assuming that’s the reason your reading this page.
Here’s a few mistakes to avoid when selling off licence shop
1. Failing to Plan is Planning for Failure
Don’t expect your shop to sell immediately when you put it on the market. Too many shop keepers think that they soon as they’ve decided to sell our going to have a buyer waiting.
Plan a date you want to be out of the business and start ‘courting’ buyers. Tell agents you’re looking to sell and start marketing your off-licence or shop.
2. Using the right broker to represent your business
Brokers make their money by selling a business. They will pick and choose the one that will give the fastest sale.
• They will consider the turnover of the shop or off licence.
• The location
• Accounting ledgers
• The price you want for it
Getting the wrong broker will cost in time and having marketed by one agent after the next will only prostitute your business.
You don’t need to be waiting 6 months before you realise your with the wrong agent. So do your research and get the right one.
3. Being a marketer
Do not rely entirely on your broker to ensure a sale. Keep your eyes and ears open for a buyer.
The best seller of your business is you. You know your off licence or store better than anyone. And you are more motivated and passionate about your business than the agent.
Get proactive about it and reach out to friends and family that may know of a potential buyer.
Getting the right price
Most start selling their business with unreal expectations’ not only of time, but that of price. The ‘blood, sweat and tears’, have a price – but the accounting books tell the true story of your business.
It’s not difficult to price your business and it’s based on:
• The Off-Licence or Store – Turnover and Profit
• The Property – Leased or Freehold
If you’re realistic about these then you will have priced your business.
4. Find the right person to sell to
Taking the first offer tends to be the longest one. Many have not researched your business industry nor sector. They tend to think of an off licence or store as a ‘panacea’ to all their life needs.
Once they find out the true realities of running a business they tend to fall out of the process quickly, wasting your time and expectations.
Identify the buyer that understands what is needed, that they show a good commercial brain and above all they have the money to buy the business.
Many buyers start the process by finding out what they think they can buy! That usually means an off-licence or store well outside of their commercial means.
Once you have identified a potential buyer, ask them ‘How are they going to buy the business?’ This question will put many buyers’ ‘noses out of joint’, as it challenges their ability to buy the business. good savvy buyer would probably respond – ‘How much do you want for your business?’ Putting your nose out of joint – which probably means you are talking to a potential buyer.