If you are preparing to sell a retail store, now is a good time to do it. U.S. retail sales rose 0.4% in December 2017 and were up 5.5% year-over-year, according to the US Census Bureau’s January 2018 report.
The monthly increases were due to a 1.2% increase in building materials sales and online transactions. However, grocery sales rose 0.7% and furniture sales rose 2.5%, while electronics sales rose 0.6%.
Year-over-year, gas station sales rose 9.9% and building materials rose 9.7%. Online retailers were the big winners, coming in with a sales increase of 11% – and accounting for 13.5% of total sales.
If now seems like a good time to cash in by selling your retail business, there are a number of important steps to take. Begin with establishing an exit strategy. Your exit strategy will detail how you will leave the business while ensuring that the retail store will continue to do well after you have moved on. Sometimes, the business owner exits immediately upon closing the sale but on occasion, an agreement is made where the seller stays on for a predetermined amount of time to guide the new owner. You need to decide what you feel comfortable with.
Next, we recommend you get all of your retail store’s paperwork in order. This will likely involve working with an accountant and a lawyer to ensure all documents that may be requested by a potential buyer are readily available. We also recommend you get an accurate business valuation to be able to establish the best asking price for your retail business.
As part of the process of preparing to list your retail business, make sure it is in the best possible shape. Are there any areas that could use improvement? This may include facility maintenance, marketing strategy or daily operations. A strong client list will be attractive to buyers; is this an area you have addressed on an ongoing basis?
Finally, list your retail store for sale or hire an experienced business broker to list your business. If running your business and managing your listings and any interest from potential buyers seems like too much for you to handle, that’s understandable. Professional brokers are experienced in the industry and are familiar with databases, marketing programs and all the necessary steps from listing to closing. They know the ins and outs of selling a business and will guide you every step of the way.
Many retail business sellers choose Transworld Business Advisors Houston as their business brokers to help them achieve the highest and best possible price for their retail business while taking the least amount of time away from their company. As a retail business owner, your time is more valuable when invested in continuing to run your retail store. In order to achieve the best price, your retail store must continue to grow. After all, that will be what a buyer who wants to purchase it will be looking for.
Ready to list your retail store? Don’t hesitate to contact Transworld Business Advisors Houston! We specialize in business brokerage, franchise consulting and franchise development. We are backed by the Transworld network of professionals that have brokered business sales and purchases for more than 35 years. Our brokers are some of the most sophisticated and experienced in the industry. We will find the right buyer for your retail store. Call us today!